Kirloskar PROJECT FILE 2012


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Kirloskar PROJECT FILE 2012

  3. 3. An Organizational Study At Kirloskar Ferrous 1.1 GENERAL INTRODUCTION We are a 600 Million US Dollars engineering conglomeratedriving critical industries. We are century old pioneers in ourareas of specialization like power, construction and mining,agriculture, industry and transport, oil and gas and environmentprotection with a range of world-class industrial products andturnkey services. We are made up of 8 major group companies, each led bythe best engineering and managerial talent in India. In addition toengineering, we have interests in civic utility systems and inInformation Technology and communication. Our multi-unit, multi-product, multi-location conglomerateis built on the plinths of Experience, Expertise, Quality, Innovationand Values in the business. Our best play is successful work andcreation of a new industrial order where we can provide tailormade solutions to the customers. At Kirloskar, listening to the customer and his needs is atradition as old as the group itself. For it are they who drive usREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  4. 4. An Organizational Study At Kirloskar Ferrousfurther, making us reach higher, and engineer better solutions. Inthe customers often unspoken wish for better implements lays theseed for a new invention, a path-breaking industrial concept. 1.2 OBJECTIVE OF THE STUDY  To understand the activities of organization Kirloskar Ferrous Industrial Limited.  To examine each and every department and its functioning in the organization.  To analyze the performance of the company.  To study the SWOT analysis. 1.3 LIMITATIONS OF THE STUDY  Time allotted for project work was short hence it was not study was based on more of secondary data that is available in the form of reports and documents.  The study was carried out in only one of the divisions of the Kirloskar and with limited knowledge.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  5. 5. An Organizational Study At Kirloskar Ferrous  Head office was undertaking all the activity of Kirloskar Ferrous Industries Limited. 1.4 INDUSTRY PROFILE1.4(A) BACK GROUND/ HISTORY The steel industry is experiencing one of the longestupswing periods for many years. Since the beginning of 1987, steelproduction has been riding for almost 29 months, with 1988bringing an increase of Western world output to 488 million metrictons of crude steel, or 8% more than in 1987. Demand fromneighboring China the words first biggest steel maker and usersalso becoming all the economic growths and country buildsstadium for the 2008 Olympics in Beijing. These favorable prospects raise hopes that steel makers areentering into a period of greater stability. It would seem as if thepainful economic adjustment process, which has been lasting formany years, is nearing completion, and that the adoptions of steelcapacities, technologies and management attitudes to the changedpatterns of economics growth are finally starting to bear fruit. Government policies and the international monetary systemwith pegged but adjustable rates and U.S. dollar as a reserveREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  6. 6. An Organizational Study At Kirloskar Ferrouscurrency has favored this rapid growth. This period is commonlycalled the “post –war reconstruction period.” The intensity ofsteel’s economic growth was rising by a vast rate between 1950-60. In Western Europe, steel jumped by 30%, in Japan by 58%and in Brazil by 41%. The effect on steel consumption increased byan average of 5.2% a year between 1950 & 1960. The industrializedcountries expanded their steel use by 4.8% per annum. Thedeveloping nations did so by as much as 8.9%. Between 1960 and 1970, Western World steel consumptiongrew by 5.7% a year, with the industrialized countries expandingtheir steel usage by 5.6% a year and the developing countries by asmuch 6.5 % a year. The steel industry has harvested to the bitter fruit of thisexcessive optimism in the firm of overextended capacitiesthroughout the world. Steel is not without lots of company in thatregard. Another important influence on steel intensity is thereplacement of steel by other materials. Calculating that portion ofthe reduction in the specific consumption of the steel that is due tothe use of other materials is extremely difficult. However, estimates made by the International Iron andsteel Institute would seem to indicate that for all of the Westernindustrialized countries the rate of substitution of materials suchREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  7. 7. An Organizational Study At Kirloskar Ferrousas plastics, aluminum, glass and timber for steel is presentlystanding at between 2 and 5 percent of steel consumption. Earlier to the Government liberalization and de–licensingpolicies in 1991–92, there was mainly two Pig Iron producers inthe Indian market; the two Pig Iron producers were TISCO andSAIL. They used to produce basic grade Pig Iron which containsless silicon content when conversion to foundry grade Pig Iron. Sowhen this is to be used by the foundries they have and Ferrosilicon for the conversion to foundry grade also the availabilityquantity of Pig Iron to the foundries was very much limitedbecause only of ISCO and SAIL were looking after all thefoundries in India. After the liberalization and de-licensing policies ofgovernment and private sectors showed keen interest in the PigIron manufacturing units that to in the production of foundrygrade Pig Iron, TATA group in collaboration with Korf Brazilstarted supplying mini blast furnace of 250 cubic meters. Whenblast furnaces were available, many private sectors started.Producing Pig Iron among them, Sese, Goa, and Usha Ispat, Sisco(Southern Iron and Steel Co. ltd). Uni Metal, Meco, Lanco,Sathavana, Kirloskar are main. These all Pig Iron producersstarted producing mainly foundry grade Pig Iron.1.4(B) CURRENT/ PRESENT STATUS OF THE COMPANYREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  8. 8. An Organizational Study At Kirloskar Ferrous India is gifted with large quantity of Iron ore with a highferrous (Fe) content, which is the crucial raw material forproducing the steel. Hence India is on of the largest producers ofsteel in the world. With the liberalization, globalization ofeconomy in the process. There is a significant scope for economicdevelopment, which means there will be focus on theinfrastructure. This will lead to considerable demand for steel. Asits main applications are in the construction, engineering andautomobile sector, which are key elements in building theinfrastructure steel in universal intermediate and has very strongforward and backward linkages hence steel industry has becomeone of he core sector of the economy. Though India is one of the largest steel producers, it has avery low per capita consumption of steel in comparison with otherdeveloping and developed countries. As demand for steel is on therise we can expect good rise in the consumption. India is fortunate in having intensive iron ore depositswith reserves estimated at10.3 billion which is more than 1/4th ofthe world’s reserves. Further the average iron ore content on Indiaore is above 60% in India, the iron or reserve are mainly found inthe states Orissa, Karnataka, Bihar, Madhya Pradesh, GAO,Andhra Pradesh, Rajasthan and some parts of westernMaharashtra. When we think of the industry steel, the first thingthat comes into is Pig Iron. This is because of its name. To put intosimple words, when molten metal from the blast furnace is pairedREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  9. 9. An Organizational Study At Kirloskar Ferrousinto moulds and solidifies it assumes a shape which resemble theback of a Pig. Hence the name “Pig Iron”.1.4(C) GROWTH & DEVELOPMENT OF THE COMPANY India has traditionally been one of the major producersof steel in the world. Till the 1990s the steel industry of India wasregulated and controlled by government policies. After the economic reforms of the early 1990s, the Indiansteel industry has evolved significantly to conform to globalstandards. India has set a vision to be an economically developednation by 2020. The steel industry is expected to play a major rolein India’s economic development in the coming years. The steelindustry of India has a very high growth potential and is expectedto register significant growth in the coming decades. India isexpected to emerge as a strong force in the global steel market incoming years. The major aspects that are expected to play a significantrole in the growth of the steel industry in India are-  Construction  Housing  Ground transportationREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  10. 10. An Organizational Study At Kirloskar Ferrous  Hi-tech engineering industries such as power generation, petrochemicals, fertilizers The current scenario of the Indian steel industry thatthere is huge growth potential in this industry. The per capita-consumption of steel in India, according to latest availableestimates, is only 29 kg. This is much less compared to the globalaverage of 1-10 kg. The per capita consumption level of developednations like the United States of America is 400kg. In this respect,one of the major initiatives that need to be taken is to focus onincreasing the consumption of steel in the rural areas of India. Thepotential for the growth of consumption of steel in the steel ofIndia for purposes like rural housing, rural infrastructure, etc ishigh which to be tapped erriciently. In order to realize the growth potential in the steelindustry of India, it is essential to ensure that the industry canremain competitive. One of the major aspects in this regard is theavailability of inputs. Shortage of inputs like coke has led toincrease in costs earlier. Moreover proper infrastructure facilitieslike transport infrastructure, power etc are of prime importance inmaintaining the competitiveness of the industry. Most developed countries have regulations that areaimed to protect the domestic steel industry. The industry steelindustry has comparatively much lesser protection throughregulations. Proper regulatory measures should be adopted by thegovernment to protect the domestic steel industry.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  11. 11. An Organizational Study At Kirloskar Ferrous1.4(D) FUTURE OF THE INDUSTRY There are certain challenges before the steel industry ofIndia in the recent times, India has been one of the majorproducers of steel in the world and has also been attracting a lotforeign direct investment. A few issues would need to be attended to if Indiawants to be counted as one of the major and most economicproducers of steel. The three areas that need to be improved uponin the view of the exports are the infrastructure, ability to draw thetop names in steel, and wealth creation issues. The condition of the infrastructural facilities of the steelindustry in India is not at all conductive to a sustainable growthand development of the steel industry of the India. The methods that are adopted for the creation of wealthin the Indian steel industry are also supported to act hindrances tothe growth and development of the Indian steel industry. TheIndian steel industry has also not been able to draw the bestprofessionals in the steel industry and that has been a major drawback of the industry. The experts are also of the opinion that not enoughpolicies or measures have been adopted to amend the situation icase of the infrastructural facilities available in the steel sector.Even through India is capable of producing steel at a good rateREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  12. 12. An Organizational Study At Kirloskar Ferrousand also increase the volume of production there is not enoughland available to support such activates. One of the major reasonsof such problems is the consistently increasing population of India. The design institutions in India have not beensuccessful at recruiting the best of engineers and metallurgists inIndia. This has affected the technological aspect of the Indian steelindustry. The exports are of the opinion that this issue has to becountered in order to reduce the dependence on the overseastechnological assistance. The steps are taken by Tata Steel areinstructive in such a context. The company has been increasingpublic awareness about the steel industry through books andeducational sessions at the Indian Institute of Technology atKharagpur.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  13. 13. An Organizational Study At Kirloskar Ferrous CHAPTER: 02 COMPANY PROFILE COMPANY PROFILECOMPANY DETAILS: Year of establishment: 1994 Sales turnover 2005-06: INR 4,827 Million, USD 105 Million No. of employees: 940(785+155)BUSINESS AREA:REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  14. 14. An Organizational Study At Kirloskar FerrousPig IronPRODUCT RANGE:Pig Iron: Foundry Grade,S.G. Iron Grade & Basic GradeCHAIRMAN & MANAGING DIRECTORMr. Atul C. Kirloskar - ChairmanMr. R. V. Gumaste - Managing DirectorMANUFACTURING UNIT & ADDRESS OF UNIT:Kirloskar Ferrous Industries Ltd., Hospet.P.O. Hitnal 583 234 District - Koppal, Karnataka, INDIATel.: +91 8539 286711, 286712, 286715, 286715, 286762, 286767Fax: +91 8539 286706, 286714E-mail: castings@kirloskar.comREGISTERED OFFICE ADDRESS:Laxmanrao Kirloskar Road, Pune 411 003, Maharashtra, INDIATel.: +91(20)25810341, Fax: +91(20)25813208, 25810209 2.1 BACKGROUND/ HISTORY OF THE COMPANY: The Kirloskar group origins were small but significant. In the year 1903, Sri, Laxmanrao Kashinath Kirloskar opened a bicycle shop in the state Karnataka in south India. From this modest venture has grownthe Kirloskar group of more than 15 manufacturing company withan annual turnover exceeding 116 millions pounds string andengineering field in India. A Kirloskar product includes pumps,REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  15. 15. An Organizational Study At Kirloskar Ferrousfarm machineries, machine tools, diesel engines, electricalmachinery a wide variety forgings electric switchgears andtractors. The vast Kirloskar group is the result of industrial Visionof Shri. L.K.Kirloskar, many overseas factories are Located in theWest Germany Philippines, Malaysia and Kenya.THE FIRST KIRLOSKAR GROUP COMPANY: Kirloskar Brothers Limited (KBL) - the first Kirloskar venture at Kirloskarvadi was to become the base for all of the Kirloskar Groups subsequent enterprises. It began as the only Indian company with its ownstandard products - the fodder cutter and the ironplough, which competed with the British products. KBL also manufactured groundnut shellers, sugarcanecrushers and pumps, which were to usher in a new economicorder in the Indian industry. To power these machines, dieselengines, coal gas generators and electric motors were developed atKirloskarvadi. In a display of great versatility, KBL then shifted itsfocus to fluid handling and control. As Indias largestmanufacturer of pumps and valves, and also the groups flagshipcompany, KBL lends its strength and expertise to every newventure of the Kirloskar Group.PLAYING A PART IN THE WAR:REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  16. 16. An Organizational Study At Kirloskar Ferrous The intensified boycott of the British goods and theapproaching World War threatened to stop imports of machinetools into India. The Kirloskar, with characteristic foresight beganmaking machine tools. This paradigm shift of sorts, from farmimplements to machine tools, created a new company - TheMysore Kirloskar Limited. This company, situated in Harihar,benefited greatly from the patronage of yet another Raja - theMaharaja of Mysore. In the first month of production, MysoreKirloskar sold all of manufactured seven lathes.The new generation -Innovation, creation, traditionFrom colonialism to independence: An important change, for the country, and for one ofits premier industrial houses, the Kirloskar Group. The alteredpolitical climate of the 1940s heralded the end of the princelypatronage for enterprise. The policy shifts and changes inauthority were the order of the day. This marked a turning pointfor the group.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  17. 17. An Organizational Study At Kirloskar Ferrous Shantanurao Kirloskar, the eldest son of the founder travelled to Pune to initiate a new aspect of the groups activities - diesel engines. His experience of trying to secure the land for his factory in Pune was quite different from his fathers in Kirloskarvadi. There was no benevolent ruler here to bestow acres gratis. Shantanurao had to face the tangle of red tape and public resistance to acquisition of land for industrial purposes. Finally, after arguing that factories have a longer lifethan human beings Shantanurao Kirloskar won a place forKirloskar Oil Engines Ltd. (KOEL), twelve months after signing anagreement of collaboration with Associated British Oil EnginesExport Ltd. of UK. This collaboration, incidentally, was the first of itskind between an Indian and a foreign company, and signified abridging of the technological gap between east and west. The KOEL factory was incorporated in 1946, andsoon after that gave India her first vertical high-speed engine.Brijlal Sarda, who reported its satisfactory running for over 4decades, bought this first engine!TO ELECTRIC MOTORS & PNEUMATICS: The making of the electrical motor. This was thesecond of Laxmanrao Kirloskars long cherished dreams, the firstREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  18. 18. An Organizational Study At Kirloskar Ferrousbeing the making of an engine. This task was brought tocompletion by Ravi Kirloskar, his youngest son, in 1946. Way backthen, the authorities whom Ravi Kirloskar had approached forland were astonished by the request for 25 acres. Today, KirloskarElectric Company Limited (KECL) has four plants occupyingseveral times that acreage. The setting up of KECL and other Kirloskar companies saw a major role being played by Nanasaheb Gurjar, a lawyer who made industry his sole area of operation. Though the development of air compressors was an established activity at Kirloskarvadi, a full- KECLs logo in the 40s fledged plant to manufacture the same was set up at Pune in 1958, under the eventual managementof Shreekant Kirloskar, Shantanuraos youngest son. Incollaboration with Broom and Wade of England, KirloskarPneumatic Company Limited began the manufacture of aircompressors and pneumatic tools.THE KIRLOSKAR GROUP OF COMPANIES:1) Kirloskar Brothers Limited (KBL): It becomes the only India Company with its own standard products the folder cutter and the iron plough, which competed with the British product. Established in year 1988 and incorporated in 1920 is the acknowledge. Leader in fluid handling and largest manufacturing and exporter of pumps inREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  19. 19. An Organizational Study At Kirloskar Ferrous India. It has acquired SPP, VK in Nov 2003 consisting at three plants in UK, USA and Africa manufacturing fire fighting pumps, water and sewage pumps.2) Kirloskar Oil Engines Ltd. (KOEL): It is incorporated in 1946. It has six plants with 2828 employees, manufacturing Diesel engines, Generating sets, Engine bearing and values.3) Kirloskar Pneumatic Company Limited (KPCL): It is incorporated in 1957, KPCL is India’s leading name in manufacturing of reciprocating compressors, screw and centrifugal compressors, tractor gears, gearboxes, refrigeration projects.4) Kirloskar Ferrous Industries Limited (KFIL): It was incorporated in the year 1992 with 2 plants manufacturing Grey iron casting and Pig iron with 1259 employees.5) Kirloskar Copeland Limited (KPC): It established in 1966 and incorporated in 1993.6) Kirloskar Ebara Pumps Limited (KEPL): It was established on 13th Jan 1988 as a joint venture promoted by KBL and EC with a mission to equipments like process pumps, steam engines, fans etc. Required for critical application in Hydrocarbon Processing industries and for power projects.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  20. 20. An Organizational Study At Kirloskar Ferrous7) Kirloskar Chillers Pvt. Ltd. It was incorporated in the year 1996. It has a single plant producing centrifugal chillers, screw chillers, reciprocating chillers8) Kirloskar Middle East F2E: Established in 1997. Kirloskar group of companies has been exporting their products to various in Middle East Africa and other markets in South East Asia for more than 3 decades. KMEF caters to its markets and customers through network of more than 50 outlets.Kirloskar Ferrous Industries Limited Establishment Year 1991 Incorporation Year 1994 No. Of Employees 1207(including 201 trainees) Chairman Atul C KirloskarREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  21. 21. An Organizational Study At Kirloskar Ferrous Company Secretary C S Panicker Registered Office 13 Laxmanrao Kirloskar Road, Khadki, , , , Pune - 411003, Maharashtra URL Auditors P G Bhagwat Listing BSE , NSE BSE Code 500245 NSE Symbol KIRLOSFERR BSE Group B Index Constituent of BSE SmallCap Face Value (Unit Rs. INR) 5.00 ISIN INE884B01025 Registrar Details Link Intime India Pvt Ltd - Pune, Akshay Complex, Block No. 202, 2nd Floor, Off. - Dhole Patil Road, Near Ganesh Temple, Pune - 411001, Maharashtra 2.2 AREA/ LOCATION OF KIRLOSKAR FERROUS INDUSTRIES LIMITED (KFIL): Kirloskar Ferrous Limited Co. was incorporated on 10th September 1991 as a Public Limited. Kirloskar Oil Engines Ltd. and Shivaji Works Ltd promote the company. The main objective of the company is to manufacture Pig Iron and ferrous casting. The company commenced production in 1994 and up an additional blast furnace in 1995. Kirloskar Ferrous Industries Limited is located at Bevinahalli of Koppal district. Spread over 200 acres of spacious land with lush greenery around. Kirloskar Ferrous Industry Limited has 2 mini blast furnaces each of 250 M3 working volume, technology and design of TATA-KORF limited in technical collaboration with Korf technology Brazil for extracting pure iron ore. REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  22. 22. An Organizational Study At Kirloskar Ferrous Each furnace producing 1, 20,000 tones of Pig Iron metal/year. The plant manufactures foundry grade Pig Iron suitable for automobile castings. Raw materials are produced from Sandur and Donimalai sector near Hospet, abundance of rich iron deposits are available in these areas. Fluxes such as limestone, dolomite, quartzite and manganese are available in the nearby surrounding area. Both iron ore and fluxes are easily accessible by road. Coke is imported from China or Japan which is unloaded at GAO / Chennai / Mumbai port and brought to the work site by rail or road. Coke is biggest raw material to the company and it accounts for almost 80% of raw material costs. Kirloskar Ferrous Industries Limited is the first pig iron manufacturer in India with QS 9000 certification. Company located on the banks of the Tungabhadra reservoir at Hospet near to the rich iron ore belt of the Hospet- Bellary range, with the Kirloskar philosophy of adopting cutting –edge technology from around the world adapting it to Indian conditions, is today committed to delivering casting of international quality in order to ensure the highest levels of customer satisfaction. NATURE OF BUSINESS CARRIED: 1. Casting and Ploughs REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  23. 23. An Organizational Study At Kirloskar Ferrous2. Compressors pumps, electric Power3. Machine tools4. Engines and components, diesel engines5. Hotels6. Advertising7. Financial ServicesTIME LINE OF KFIL:1994 Year of inception1994 Commercial production of Pig Iron from Mini Blast Furnace I1995 Commercial production from Mini Blast Furnace II1995 ISO 9002 certification2001 QS 9000 certification2002 ISO 14000 certificationREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  24. 24. An Organizational Study At Kirloskar Ferrous 2.3 VISION STATEMENT, MISSION STATEMENT, CORE VALUES, OBJECTIVESVISION STATEMENT Business for us is the best service, customer care and alifelong relationship. “To be a world class product leader throughthe STATE OF THE ART manufacturing technologies and process.”REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  25. 25. An Organizational Study At Kirloskar FerrousWhere are we headed? We believe in synergy and its limitless power of unifying. Itis not limited to our group. It extends to the realms ofcustomer/collaborator relations, investor interactions and into markettrends analyses and technological advances. It is the only way weensure that when an endeavor is made by several different elements,the result is of a far higher quality than what could have been achievedby each element acting alone.How do we plan to reach there? For the Kirloskar Group, engineering excellence is not anend, but a journey. An array of business solutions stand testimony tothe fact, that good business values, pillared by expertise can workwonders. Solutions, which are crafted from a solid base of developingand manufacturing, generate reliable products and superior service.Through which, continual measurement of customer satisfaction isoffered. Its a commitment rather than a ritual.MISSION STATEMENT To produce quality castings & Pig Iron as per world standard to cater the needs of domestic and international markets and to active “Total customer satisfaction” Through professional system and practices in every field, giving weight age to development of human resource available in the org and ultimately to become one of the best (in term of quality, turnover and efficiency) in India.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  26. 26. An Organizational Study At Kirloskar Ferrous To activate the culture of involvement, team works participation unity and this achieves excellence in all efforts and activities by each one here at KFIL. To establish a clean, Tides and green revolution free environment highlighting the fact that we are for Mother Nature. To be a projected to external world a progressive well managed well maintained professional organization.CORE VALUESTo achieve the mission and vision, KFIL divided following Values:  Customer orientation  Vendor Development  Development of Human Resource  Process and product excellence  Responsible corporate neighborOBJECTIVES OF THE COMPANYTo know the employee satisfaction towards the companyREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  27. 27. An Organizational Study At Kirloskar Ferrous  To know the problem faced by the employee in the working condition  To know the cause for the problem  To know the interpretation ship between the employee and the organization  To analyze the problem and give suggestion for it  To create a peaceful and harmonious working environment.  To attain leadership in the market through service  The firm aims at the fulfillment of the required industrial development in India.  Committed to deliver products and services to satisfy the needs of the customers  To make continuous efforts to improve quality by continuous training  To activity involve people to contribute towards high productivity through team word and innovation.  It aims of the training and production of skilled personnel  It aims to the improvement of the locality  It aims to contribute towards the economy of the country.  It aims to provide employment to people directly by the company and indirectly through onside contracts.  Aims to project itself as model to other industries as self- sufficient, disciplined organization.  It aims to resources locality available and to raise them to global standards. 2.4 PRODUCT PROFILEREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  28. 28. An Organizational Study At Kirloskar Ferrous An innovative technology from KTS(KORF TechnologicalSidervrgica Ltd.) Brazil has helped KFIL to design and develop aMBF has come a long way and has enabled many entrepreneurs toproduce more than 500 MT of Pig Iron world over. KFIL is among the first in India to adopt this state of arttechnology with computer controls to produce consistent qualityof Pig iron. KFIL also boasts of a record of projects completion ofelecting the first MBF within 18 months and second MBF within 9months. It has got uniform crystalline pearl tie structure it is slagfree and made from the riches grade of iron ore and importedcoke. It is supplied to KFIL valued customer of the engineeringindustry who cater to automotive, tractor, textile, pumps, andspun pipes segments as well as the steel industry.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  29. 29. An Organizational Study At Kirloskar FerrousPRODUCTION PROCESS OF PIG IRONPIG IRON PLANT (PIP) Pig iron is produced using raw materials such as iron ore, coke,and fluxes such as limestone, dolomite, quantize, and manganese arepre-requisite quantity of iron ore, coke. Fluxes are then feeded into thefurnace by means of the electronic weighing system. Consisting of loadcell, batching controller and programmable logic controllers. Pig Iron isproduced through MBF`s.RAW MATERIALS  Coke  Iron ore  Lime stones, Dolomite  Aurtoz Raw material brought-venders site-testing the quality-sentferrous through convert belts-Raw material put into the silvo-step bystep i.e., Coke, Iron ore plasles (Lime stones) quarter-heat-1300c whenIron ore melts than it is typically for every two hours-help of drillingmachine when it is drilled the method Iron ore comes out of the ferrousand then in load to barrel- both help of it is into the moulds and thensent for cooling purpose when it is paused and cooled then it is readyfor marketing.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  30. 30. An Organizational Study At Kirloskar FerrousDEMAND & AVAILABILITY OF PIG IRON (UNITS) Years Demand Availability 2000-01 2400 3224 2001-02 2900 3469 2002-03 2700 3733 2003-04 2900 4016 2004-05 3100 4322 2005-06 3300 4650 2006-07 3600 4900 2007-08 3800 5750 2008-09 4100 5233 2009-10 4400 5474REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  31. 31. An Organizational Study At Kirloskar FerrousFOUNDRY PLANT:1. MANUFACTURING PROCESS OF FOUNDRY CASTING: 6,000 5,000 4,000 3,000 Demand Availability 2,000 1,000 0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 In the first process they prepare fiber castings and then thesame fiber mould which is prepared according to 86 the design ofcustomer and then according to same to fiber mould sand mould andprepared and then they are dipped into the water for to make mouldsstrong. Then they are placed in box. Then boxes are and arranged inmale and female and attached together and sent further their coal isput on their boxes and processed to get a shape and this process incontinued. Further the moulds are sent to press pour to those boxeswith iron. This press pour is contained of hot iron liquid after pouringinto moulds they are sent for cooling at degree of 300c. After coolingsand is removed and sent for finishing. Press pour contained hot liquidIron, which is brought from Frances, which has a capacity of 30 tonseach, totally they are two foundries having capacity of each furnace of250mt and producing about 400 tons per day. The Iron liquid isbought to casting from first furnaces are shutdown the iron is broughtfrom second furnace and then steel is added to chat melted Iron.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  32. 32. An Organizational Study At Kirloskar Ferrous Foundry business is the core expertise of the group. In KFILthe state of art technology in foundry is adopted to meet the highvolume of demands of automotive and farm mechanization sector.This also meets the requirements like reduced wall thickness, lowmachining allowance, above all receptive dimensional accuracies. Theysupply castings in the domestic market companies like KOEL, TATAEngineering Locomotive Co., Punjab Tractor Ltd., Mahindra andMahindra, Simpson, Maruti Udyog Ltd.2. THE LIST OF INDUSTRIAL PRODUCTS: The following table represents the basis of productsdifferentiation & the list of industries where these products are used. Different Chemical composition is the reason for productionof different kinds of products. Mainly products are differentiated onREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  33. 33. An Organizational Study At Kirloskar Ferrousthe basis of silicon compensation. Company has got different kinds ofcustomer varying between with high or low range of silicon contents.OWNERSHIP PATTERN KFIL is Public Limited Company, It has issued shares tothe general public, and it gives regular dividend to share holdersCOMPETITIORS TO KFIL  NECO  LANCO INDUSTRIES LTD  SESA INDUSTRIES LTD  SATHAVAHANA ISPAT LTD  JSVL  KALYANI STEEL LTD PIG IRON COMPETIORS FOUNDRY COMPTITORSREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  34. 34. An Organizational Study At Kirloskar Ferrous 1.Sesa Goa 1. Ashok Iron Works Private. Ltd. 2.Kudharemukha Iron & Ore 2.DGP Foundry 3.Kalyani 3.Nelcast 4.JSW 5.Usha Ispat 5.7 INFRASTRUCTURAL FACILITYPIG IRON PLANTMini Blast Furnace (MBF): Mini Blast Furnaces: 250 cubic meters – 2 nos. Capacity of liquid metal production : 240,000 tons per year. Pig Casting Machine: 2 nos. Capacity : 76 MT per hour. Spectra lab: Analysis of 18 elements in 60 seconds.Power Generation:  Turbine Generators: 2 nos.  Capacity : 7 MWREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  35. 35. An Organizational Study At Kirloskar Ferrous  Diesel Power Plant with capacity : 19 MWFOUNDRY PLANTMelting:  ABB Make Holding / Melting Furnaces : 3 crucibles & 2 controls  Capacity: 30 tons holding capacity, each.  ABB make Press Pour Furnace with 7 tons holding capacityMould Shop:  George Fischer makes high pressure moulding machine and auto mould handling system.  Type of moulding machine : Air Impact Plus  Speed : 70 moulds per hour  Box Size: 1250 X 900 X 400 / 400 mm.  Core setting mechanisms: 2 nos.  Sand Plant with capacity of 110 tons per hour with mold ability controller.Core Shop:Cold Box Core Shooters:REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  36. 36. An Organizational Study At Kirloskar Ferrous  Core Shooter capacity : 40 liters  Number of core shooters: 20 nos.Shell Core Shooters:  Capacity : 40 liters, 20 liters and 15 liters  Number of core shooters: 10 nos.Casting cleaning:  George Fischer designed Special Purpose Shot Blast machine  Hanger type shot blast machineQuality:  ARL Spectrometer  Chemical laboratory  Sand laboratory  Brinnel Hardness Tester  Universal testing machine  Casting sectioning machine  Microscope with photo & CCTV attachmentREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  37. 37. An Organizational Study At Kirloskar FerrousWORK FLOW MODELPIG IRON The raw material required for manufacturing Pig iron are ironore, lime stone, manganese, coke and dolomite. There are 2 MBFfunctioning in KFIL for manufacturing by adopting followingprocedures:PROCESS Iron with ferrous is reduced in he presence of metallurgical cokein a blast furnace into which they are charged along with fluxes inaprès determined production manner the carbon monoxide gas thatraises up HT column or the change reduced that Iron oxide. Themolten Iron is periodically tapped and cast in moulds placed on a largediameter turntable – the blast furnace process used for producing pigREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  38. 38. An Organizational Study At Kirloskar Ferrousiron in a process which is used world over the only difference in thiscase the small size of the blast furnaces in comparison with those seenin integrated steel plants. The mini blast furnaces process is already inuse in several countries especially Brazil and China. There is viable inspite of its small size because of several capitals and operating cost.MOULDING First the pattern is prepared for moulds according to therequirements of the customers. High squeeze presence high densitymolding machine short squeeze for the box size. The health of themolding high quality dimension stability of the green sand mouldswill be achieved to give dimensional close control of the castingmolding machine.CASTING Casting is the final produce produced by KFIL, for producingcasting the hot molten metal is poured in to the mould throughrunners of moulds and the hot metal occupies the shape of the mouldand it is allowed to solidity. After solidification the caste item is reversed from the moldingbox and necessary operations like grinding and other process arecarried out to set required dimensions according to the requirements.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  39. 39. An Organizational Study At Kirloskar Ferrous 2.5 ORGANIZATIONAL STRUCTURE OF THE COMPANYINTRODUCTION: The organizational structure of an enterprise woulddepend upon its size, product manufactured and its functionaldivisions. The organizational structure may be flexible. Thecompany may change its structure according to the needs andsuitability. In KFIL the Board of Directors is having the majorposition in the company. Managing Director (CMD) is heldresponsible for formulating and implementing the Policies,Procedures and rules with the assistance of Board of Directorsappointed by the Government and various financial institutions.Different functional department heads like Production, Marketing,Finance, and HRD&A etc also assists him.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  40. 40. An Organizational Study At Kirloskar Ferrous Each functional department heads are assisted by theAssistant Managers. There is always coordination between allfunctional departments through horizontal communication.ORGANIZATONAL STRUCTUREREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  42. 42. An Organizational Study At Kirloskar Ferrous  Mr. Atul C. Kirloskar (Chairman)  Mr. Sanjay C. Kirloskar  Mr. R. V. Gumaste (Managing Director)  BOARD OF DIRECTORS Mr. A. R. Jamenis Mr. C. V. Tikekar Mr. S. N. Inamdar Mr. G.A. Tada Mr. A.Moudewadi  COMPANY SECRETARY Mr. C. S. Panicker  AUDITORS M/s. P. G. Bhagwat  BANKERS State Bank of India Bank of Maharashtra Andhra Bank UTI Bank Ltd ICICI Bank Ltd IDBI Bank LtdREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  44. 44. An Organizational Study At Kirloskar Ferrous  RESOURCES  RESEARCH AND DEVELOPMENT 3.1 HUMAN RESOURCE DEPARTMENT In accordance with our mission of DESTINED TO SCALENEW HEIGHTS we strongly believe that, a satisfied employee isan unadvertised asset of a company. Hence, we at, KirloskarFerrous Industries Ltd., are committed to bind the organizationwith a common purpose, a common mission and common valuesso as to continuously upgrade quality of work life of ouremployees through: Creation of good working environment and shared accountability for quality, safety and knowledge.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  45. 45. An Organizational Study At Kirloskar Ferrous Adoption of improved work practices to foster the intellectual capital. Develop people with high degree of entrepreneur ability and leadership qualities. Develop emotional togetherness for strong ownership. Defining the role & responsibilities of employees to generate empowerment and right leadership. Encouraging teamwork, participation & involvement to effectively deal with negative residues. Development of personnel to create knowledge tank and a learning base to defeat competition. Recognize performers through rewards and recognition.HUMAN RESOURCES ETHICS: Developing passion for excellence is the core of our HR philosophy. Developing potential HR in order to achieve corporate goals and objectives.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  46. 46. An Organizational Study At Kirloskar Ferrous Focus on grass root level for transformation into potential leaders. Educate HR to develop extra - ordinary reasoning power and move towards enrichment of life. Belief that our success depends on the motivated workforce who bring out their best to achieve job requirements. As a learning organization the company adopts a team learning process to create a strong knowledge base. We believe in the process of empowerment for success. Building self - driven and committed employees with competencies necessary for high level of sustained performance, retention and motivation of key employees. Maintaining the dignity of employee as a human being.CAREER WITH KIRLOSKAR: Provides suitable and most productive assignments, which brings psychological satisfaction. A congenial working environment comparable to the best in the industry; an enviable professional growth. Provides maximum opportunities for personality development. Competitive compensation, benefits and remuneration based on results is our policy today and focus in the future.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  47. 47. An Organizational Study At Kirloskar FerrousOBJECTIVES OF THE HUMAN RESOURCES DEVELOPMENT Human resource department is to be with the employee from his training to till his separation. Human resource department constantly care for each employee right from his induction to his separation. Projecting manpower to recruit only qualified people as per the recruitment specification. Development the available manpower to the maximum possible extent through training.HUMAN RESOURCE POLICY OF KFIL: Company recruit only qualified people as per the recruitment specified in the manpower plan. The availability manpower shall be developed to the maximum possible extent through training. The training shall be imparted on the basis of job recruitment of each employee. The training to an employee shall be of two types. ON THE JOB TRAINING by concerned supervisor and Sectionhead and department head.OFF THE JOB TRAINING by the HRD departmentREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  48. 48. An Organizational Study At Kirloskar FerrousAUTHORITIES & RESPONSIBILITIES OF HRM: Manpower planning, recruitment and selection placement. Training and development. Performance appraisal, wage and salary administration. Security, transport fire and safety. Industrial relations dealing with government. General administration including public and guest relations. Estate management covering horticulture, guesthouse etc. Administration of welfare activities covering canteen, medical, etc. Human resource department coordinates all otherdepartments and helps them to work effectively. This departmentperformance all those functions which crates a sense ofbelongingness among all the workers. Apart from this it alsomaintains a cordial relationship between other industriesTHE VARIOUS FUNCTIONS PERFORMED THIS DEPARTMENTARE:  Recruitment  Selection  Interview  Placement  Wage and salary administration  Training and developmentREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  49. 49. An Organizational Study At Kirloskar Ferrous  Performance appraisal  Promotion and transfers And all those functions which helps to motivate theemployees and which leads to increase their morale.SOURCES TO RECRUIT THE CANDIDATES: E –recruitment Advertisement in news paper Walk in interview Campus interview Data bank Promotion is totally based on merit of the employees.Company believes in promoting those employees who reallycontributes towards the growth of the organization. Company evaluates the performance of the employeesby using 360 degree performance appraisal method. In thismethod company considers the opinion of the 3 major evaluatorsthey are as fallowing; Self appraisal Superior Suppliers and customer Training plays major role in structure of the individualpersonality. Company preference on the job training it includes:REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  50. 50. An Organizational Study At Kirloskar Ferrous  Job rotation  Coaching  Class room training Other than the usual work process it also performs theother functions like maintaining the industrial relations amongother industries, motivating the employees by conducting and byimplementing continuous training program etc., 3.2 FINANCE DEPARTMENT Finance department deals with various functionalactivities of the organization. The books of record of KFIL ismaintained by fully own built software system. The generalmanager of this department is Mr.Srinivasan.FUNCTIONS OF FINANCE DEPARTMENT:1. Funding activity: Banks provide both long-term & short-term funds. Long-terms funds like debentures term loans, etc. are used forproject financing. Short-term Loans are taken to meet the working capitalrequirement. Commercial banks help in providing short term funds. Individual banks will not finance the whole requirement butthey will share with other banks. The finance department will be having the continuousCommunication with the head office, so that the corporate officeREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  51. 51. An Organizational Study At Kirloskar Ferrouscan transfer the funds to its unit. This operation is called as ‘Fundtransfer booking’. 2. Treasury function: They will maintain cash or bank balance book for any payments. They will use only cheques for making transactions. 3. Book keeping: A company should maintain books of accounts. There isan own built computerized system including the accounts of sale,purchase, cash/bank, stock, tax, fixed assets, etc. The department has to disclose the information byclosing the books monthly. The books disclose the information tothe share holders of the company. 4. Audit: There are two kinds of audit:  Internal audit – calls some of the outsiders or company people them self’s conducts audit & it is disclosed to the department only.  Statutory audit – yearly report is addressed to the share holders.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  52. 52. An Organizational Study At Kirloskar FerrousShareholding Pattern of the Company Particular No. Of Shares Percent Shares(%)Promoters and Promoters Group 80,941,870 58.95Financial Institutions 3,565,000 2.60Nationalised Banks 500 0.00Non Nationalised Banks NIL NILInsurance Companies 4,000 0.00Non Resident Indians 1,465,032 1.07Mutual Funds 6,750,405 4.92Foreign Institutional Investors 48,100 0.03Domestic Companies 5,641,823 4.11Trust 200 0.00General Public 38,891,151 28.32Total 137,308,081 100.00REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  53. 53. An Organizational Study At Kirloskar FerrousREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  54. 54. An Organizational Study At Kirloskar FerrousREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  55. 55. An Organizational Study At Kirloskar Ferrous 3.3 PURCHASE & STORE DEPARTMENT To ensure availability of raw material with managementquality and quantity at right time with right price. To considersuppliers as partners in our business towards TQM goals. It haskeep FIFO method of storing materials. On the basis of item codedelivery order is to be considered. On the basis of store entryreport, material has to be issued. Department member is checkingthe materials. Company using Oracle System for materials flow,process flow.MISSION OF PURCHASE DEPARTMENT: That it is “To ensure the availability of the material with quality and right quantity at right time right price”. The factors considered by the purchase department are price, quality, and supplier background. The main objective of purchase department is to reduce the cost of maintenance. At present the total purchase turnover is 400 per annum. Three grade of material A, B, C. 1. Directly used material – iron, ore, coke, etc. 2. Supporting system.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  56. 56. An Organizational Study At Kirloskar Ferrous 3. Other raw material MATERIALS SUPPLIERS1.Grade sand Mangalore minerals2.Iron ore -V.S. Laad & sons -National minerals development -Rajalaxmi minerals - Guru Rajendra minerals3.Low grade iron ore lumps -Rajapur minerals Bellary mining corporation4.Low grade sponge iron -Hospet Ispat Ltd,5.Merallurgical coke -Adhi global pvt Ltd, -IMR metallurgical6.Lime Stone -Sharada cements -Vaadhiraj minerals7.Dolomite -Vaadhiraj minerals8.Scrap bundle -Mysore enterprisesMATERIALS WITH SUPPLIERS:REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  59. 59. An Organizational Study At Kirloskar FerrousPRODUCTION: As history has it, the Kirloskar dream started taking shapeon 32 acres of barren land strewn with cacti and infested withcobras. Driven by the faith in human ability, Laxmanrao Kirloskarbanded together 25 workers and their families and went totransforming the barren expanse into his dream village. Since thena century had passed and there has been no looking back. Those32 acres has expanded into 350,000 m. sq of developed land withstate of art facilities.PRODUCTION FUNCTION: Equipment processes personnel are qualified to performthe required operation’s respective department reports qualifiedrecords objectives evidence of conformance to specifiedrequirements.PRODUCT IDENTIFICATION TRACEABILITY: 1. Purpose: To provide guidelines for establishment procedure fire identifying the product by suitable mean’s respect during stages of production to delivery. 2. Quality system: To provide guidelines to establish. Document & maintaining a quality a means to ensure thatREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  60. 60. An Organizational Study At Kirloskar Ferrous product conformance to requirements. To outline structure of documentation in quality systems. Trade line document, the quality planning is done to meet the requirements of product. 3. Method: Incoming raw materials shall be identified by location marked for supplier wise storage other materials are identified by any of the following means tag location for storage point marks pencils marks name plates boards sticker.  Quality assurance manual (QAM): The top ties document prepared primarily conveying the organization commitment to quality & maximizing customer satisfaction  Common procedure manual (CPM): This is second ties document issues to all department heads for common procedure.  Divisional procedure manual. (DPM): This is also second ties document prepared by divisional heads dealing how a job is done with responsibility specified department procedure of HRM & TRG are prepared by respective department heads.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  61. 61. An Organizational Study At Kirloskar Ferrous 4. Work instruction: This is third ties document primary to operate with specify work details there are generally issued by document or sectional heads & when required they translated in vernacular language (Kannada) Forms/ formats Standards check seats supporting documents etc these are primarily designed by departments taking into consideration the procedures/ work instruction details.MANUFACTURING PROCESS:1. Charging the blast furnace: After processing, the ore is blended with other ore and goes to the blast furnace. A blast furnace is a tower- shaped structure, made of steel, and lined with refractory or heat – resistant bricks. The mixture of raw material, or charge, enters at the top of the blast furnace. At the bottom of the furnace, every hot air is blown, or blasted, in through nozzles called tuye’res. The cokeREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  62. 62. An Organizational Study At Kirloskar Ferrous burns in the presence of the hot air. The oxygen in the air reacts with the carbon in the coke to from carbon monoxide. C + O2 -----> 2CO (Coke) (Hot Air) (Carbon monoxide)2. Separating the iron from the slag: The melted iron sinks to the bottom of the furnace. Thelimestone combines with the rock and other impurities in the oreto form a slag which is lighter than the iron and floats on top. Asthe volume of the charge is reduced, more is continually added atthe top of the furnace. The iron and slag are drawn off separatelyfrom the furnace. The melted iron might go to a further alloyingprocess, or might be cast into ingots called pigs. The slag is carriedaway for disposal.3. Treating the gases: The hot gases produced in the chemical reaction aredrawn off at the top and routed to a gas cleaning plant where theyare cleaned, or scrubbed, and sent back into the furnace; theremaining carbon monoxide, in particular, is useful to thechemical reactions going on with in the furnace. A blast furnacenormally runs day night for several years. Eventually the brickREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  63. 63. An Organizational Study At Kirloskar Ferrouslining to crumble and the furnace is then shut down formaintenance.Pig Iron Pig Iron: GradesREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  64. 64. An Organizational Study At Kirloskar FerrousThe specifications of the various grades of Pig Iron produced atKFIL are as follows:PIG IRON Carbon (%) Silicon (%) Manganese Sulphur (%) PhosphorousGRADES (%) (%)Foundry 3.80–4.20 2.00–2.50 0.50–0.90 0.06Max 0.09MaxGrade 3.80–4.20 1.80–1.99 0.50–0.90 0.06Max 0.09Max 3.80–4.20 1.51–1.79 0.50–0.90 0.06Max 0.09MaxBasic Grade 3.80–4.20 <1.00 0.40–0.80 0.08Max 0.09Max 3.80–4.20 1.00–1.25 0.40–0.80 0.08Max 0.09Max 3.80–4.20 1.26–1.50 0.40–0.80 0.80Max 0.09MaxS.G. Grade 3.80–4.20 1.50–2.10 0.30Max 0.03Max 0.08MaxFOUNDRY:Grade Specifications of the various grades of Foundry produced at KFIL areas followsIndia British Japanese German USA ISOREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  65. 65. An Organizational Study At Kirloskar FerrousStandard IS Standard Standard Standard Standard Standard210-78 BS: 1452-98 JIS: G-5501-89 DIN: 1691-85 ASTM 48-83 ISO: 185-88FG200 180 FC 200 GG – 20 30A 200FG220 220 FC 250 GG – 25 35A 250FG260 260 GG – 30 40A 300FG300 300 FC 300 GG – 30 45A 300REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  66. 66. An Organizational Study At Kirloskar FerrousREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  67. 67. An Organizational Study At Kirloskar Ferrous 3.5 MARKETING DEPARTMENTVISION ‘To be world class product leader through the state of the artmanufacturing technologies and processes’MISSION “A family committed to growth and prosperity of theorganization through leadership attributes and quality orientationof people and processes that continuously satisfy the customerswith their ever changing needs”MARKETING POLICY “In the direction of achieving the company’s mission, themarketing team- PIP endeavors for maximization of sales andrealization for the company’s product while meeting thecustomer’s requirement to their all round satisfaction”.STRATEGIES  Maintaining quality leadership  On – Time delivery  Strong dealership network  Customer orientation  Customer drivenREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  69. 69. An Organizational Study At Kirloskar FerrousCUSTOMERS FOR PIG IRON ARE AS FOLLOWS: NAME OF THE CUSTOMERS LOCATION 1.Electro steel casting limited Chennai 2.Breaks India Chennai 3.Laxmi Mission works Coimbatore 4.Texmo pumps Coimbatore 5.Bangaore metallurgical Bangalore 6.Ashok in works Belgaum 7.Gadge patil industries Kolhapur 8.Kapilanch datu udyog Nagpur 9.Prashant casting Rajkot 10.Punjab tractors limited Punjab 11.Shriram piston rings GaziabadPRICING OF KIRLOSKAR: The name kirloskar itself is the mark of the customer KFILhas I got the opinion of transporting pig iron to the buyer sites tothe buyer. The service like transporting is rendered to customer byKFIL with very nominal charges.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  70. 70. An Organizational Study At Kirloskar FerrousIn KFIL we come across different price terminologies:  List Price  Discount  Allowance  Payment Periods  Credit Terms.LIST PRICES: nothing but the selling price. It is also called basicsalary.Basic price = Production Cost + Profit.Production cost includes both variable cost &fixed cost.If the transport is under taken by KFIL then boarded price iscalculated according to sites mentioned in receipts.Record Price = Basic Price + Freight +CED (Central Excise Duty)A discount of Rs 100/- price is given to the regular &bulk buyers. Price of KFIL pig iron ore comparatively more whencompared to competitors. Even with this more also KFIL hassucceed in reaching top market share holding position in the pigiron market of foundry people prayer KFIL pig iron because of thefollowing reasons.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  71. 71. An Organizational Study At Kirloskar Ferrous  High Quality  Fixed Chemical Composition.  Test Certificate Are Issued With Every Load  Almost 0%Impurities & Slag Mix Up. If customer demands for 2.25% silicon then KFIL willsupply exactly with this composition. Where others supply withrange between i-c 22.25 silicon. Opening furnace KFIL iron weights 7kg’s KFIL brandname helps in attracting customers. From above points it is clearthat KFIL is not using any mark penetrate pricing strategy topenetrate the market instead it is using mark skimming pricingstraightly.PROMOTION: KFIL has appointed numbers of dealers throughoutIndia for its marketing purpose each dealer will get rs100/- PMTas commission for the pig iron he sells credit notes are given tothese dealers for his commission. Pig iron is also give credit sales as one of thepromotion tools to attract customer credit time depends on areas(less credit period is for north zone) & order they give.DISTRIBUTION: KFIL has got distribution network spread all overIndia inform of dealer ships & also through company’s employeeKFIL has divided its market into 7 zones.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  72. 72. An Organizational Study At Kirloskar Ferrous Zone A Karnataka Belguam, shivamoga Bangalore. Zone B Andra Pradesh Hydrabad,vijayvada Zone C Maharastra Pune,Mumbai nagpur solapur Zone D Gujarat Ahemadabad rajkot,surat Zone E Rajastan Jaipur Zone F Delhi Delhi,zadhinoor,agra Zone G Tamil nadu Chennai, coimbatore ,madurai. 3.6 RESEARCH & DEVELOPMENT In this era of constant change, where what is old isconsidered dead we have been able to match steps with the latesttechnological changes. Technological innovation is the core of ouroriginal product design function. We believe in pro-active productdevelopment, to precisely meet the needs of customers andoperating conditions. Expanding to meet the ever-changing needsof the customers comes naturally to us.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  73. 73. An Organizational Study At Kirloskar FerrousREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  75. 75. An Organizational Study At Kirloskar Ferrous POLICIESSAFETY POLICY:In accordance with our mission of "DESTINED TO SCALE NEWHEIGHTS", To provide safe machinery, equipment, methods, operations, tools and environment for prevention of accident. To achieve an integrated safety & health system in all areas of activities. To enforce relevant statutory provisions of safety and health for preventing accident. We expect our employees: 1. To observe safety rules 2. To use safety appliances and devices 3. To report to managers any unsafe condition of machines 4. To work as per lay outs 5. To care for personal hygiene 6. To practice safety conscience, culture 7. To be always alert in accident prevention measuresREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  76. 76. An Organizational Study At Kirloskar FerrousHEALTHY POLICY:In accordance with our mission of "Destined to scale new heights",we firmly believe that health & hygiene of employees is extremelyimportant to improve the quality of life. To achieve this, we shallstrive for improved health standards, better and safe workingpractices and eco-friendly environmental workstations.We are therefore committed to:Provide wholesome healthy environment for our employees to prevent occupational health hazardsAchieve health integrated systems in all the areas of operationsEnforce relevant statutory controls for prevention of diseases and epidemics to maintain sound Health.We expect our employees to co-operate by:  Keeping good health and hygiene  Practicing healthy habits and learn to care for personal hygiene  Having medical surveillance through periodic health check- ups  Maintaining good health and sound mind to promote a healthy working environment.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  77. 77. An Organizational Study At Kirloskar Ferrous  All employees shall Endeavour to achieve this ultimate goal of "Health for All".COMMUNITY SERVICES:Social welfare: Company is located only 16 kms away from the majorindustrial town Hospet and 16 kms away from Koppal inKarnataka State. Company is located on NH-13 & NH-63connected to both these towns. The employees are picked up &dropped by chartered busses and vans. In both the towns, thereare very good schools and colleges inclusive of Professionalcolleges to enable the children of our employees to pursue highereducation. As a philosophy, we have an objective concern for thewelfare of the society to restrain individual or corporate behaviorfrom ultimately destructive activities, no matter how immediatelyprofitable and to lead in the direction of positive contributions tothe human settlement. We as an economic unit within the society, irrespective ofprofit / loss, consider our duty to repay the debt towards thesociety.Our social contribution goals:  Provision of quality health care / drinking water.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  78. 78. An Organizational Study At Kirloskar Ferrous  Provision of employment opportunities  Environment protection and maximum efforts to prevent environmental hazards  Improving community life of people & Building infrastructure  Affordable quality education  Safety of employees, customers, minorities, women and community  Changing social needs, values and demands  Contribution to national exchequer. Foundation.ENVIRONMENT MANAGEMENT: KFIL has been awarded ISO - 14001 Certification by IRQS on27th of August 2002 for its commendable achievements andimprovements in Environmental Management Systems. Our commitment to protect and upgrade the environment isembodied in our Environmental Policy wherein cost effectivemethods for waste management, prevention of pollution andresource conservation are main elements.Environment Policy:REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  79. 79. An Organizational Study At Kirloskar Ferrous  In accordance with our mission of "DESTINED TO SCALE NEW HEIGHTS",  We, at Kirloskar Ferrous Industries Limited, manufacturers of Pig Iron commit to protect and upgrade our Environment through:  Systematic and Cost effective methods for waste management.  Control of all pollutants within prevailing acceptable limits through best available technology resources & periodic reviews enabling continuous improvement.  Optimal utilization and conservation of resources through effective recycling and re-use practices.  Compliance of all applicable Environmental Laws and Regulations.  Environmental awareness programmes to all Employees through Training.  Communication of this Policy to interested parties for their participation & involvement into the preservation of our environmental norms.  Plantation of thick and tall growing trees, providing sprinkling systems, providing a compound wall across the Northern and North-Eastern Boundary are all done to restrict fugitive emissions entering into neighboring village and to protect the agricultural crops there.  A study of the same has been entrusted to University of Agricultural Sciences, Dharwad for assessment of soil health and crop yield.  Regular monitoring of various environmental parameters.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  80. 80. An Organizational Study At Kirloskar Ferrous  Conversion of around 200 meters of barren land into a green belt.  Transferring the wastes generated in the process to user industries.  Installation of wastewater treatment plant at an annual operating cost of 1.5 Crore Rupees. MAJOR EVENTSYEAR EVENTS1994 Mini Blast Furnace I commenced commercial production1994 Turbo Generator I taken on lease having a capacity for the genaration of 3.5 MW of power using B.F.Gas.1995 Setting up a facility having a capacity to draw water from the Tungabhadra dam1995 MBF II taken was lease, was installed and commissioned in a record time of 9 months1995 ISO-9000 certification received1997 Foundry Capacity was increased from 425,000 moulds per annum to 475,500 moulds per annum1998 Started supply of TG power to foundry Company allotted preference shares of Rs. 45 Crores to increase the shares capital.1999 Company called an extraordinary general meeting of the shareholders on October 29, to consider erosion of more than Company’s peak net worth during immediately preceding four financial years pursuant to section 23 of Sick industrial companies special provision act 1985.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  81. 81. An Organizational Study At Kirloskar Ferrous2000 Company entered into financial restructuring with IDBI and with other Institutions namely IFCI, IIBI, GIC, OIC, LIC & NIA.2001 Quality Standard 9000 certification received. Company allotted preference shares of Rs. 27.22 Crores to increase the shares capital. Company allotted Equity shares of Rs. 13.72 Crores to increase the equity shares capital.2002 ISO-14001 certification received company entered into financial restructuring with IDBI & with other institutions. Company allotted preference shares of Rs. 32.46 Crores to increase the share capital. company entered into profit.2003 Company entered into settlement with Financial Institutions For the repayment of the loans. Company entered into profit for the second consecutive year.2004 Company repaid entirely the loans taken from Financial Institutions bearing high rate of interest. Thereafter the company took reduced loans at lower rate of interest. Company entered into profit for the third consecutive year.2005 TS 16949 certification received 83 Commissioning of an induction furnace of 12 tonne capacity. Company paid Dividend of Rs 11.33 Crores on preference shares. The shareholders passed special resolution for reducing the face value of equity shares Rs.10 each to Rs.5 each fully paid up for the winding up accumulated losses to the extent of Rs.36.11 Crores. Company entered into profit for the Fourth consecutive year.2006 Company paid dividend including arrears of Dividend amounted to Rs. 22 78 Crores on preference shares. Company purchased the MBF II and TG I ,II which were earlier taken on leaseREGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  83. 83. An Organizational Study At Kirloskar Ferrous SWOT ANALYSIS OF THE COMPANY“Business for us is when you have the time to show that you care”STRENGTHS:  Established market/brand name.  Growth in automobile market.  Nearer to iron source.  Delivery to customer as per schedule  Use of byproduct CO gas for generation of electricity helps to reduce cost of production.  Easy availability of skilled and semiskilled human resources due to presence of villages and ITI, Diploma and engineering Institutions nearby.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  84. 84. An Organizational Study At Kirloskar Ferrous  Quality is established presence in all market eastern zones, reasonable transportation facilities available for all area 25% of production is tied up with institutional customer.  China’s policies for issuing licenses for coke export  Impact on iron ore prices  International demand for steel  Impact on international steel prices and Domestic steel prices  Government policiesWEAKNESS:  The cost involved in completion of product is high.  Inconsistency in appearance  Already at peak utilization of current capacity  Weakness core expertise on prevention maintenance  Total dependence on imported coke  High coke consumption due to higher fines and handing costs due to multiple handling  Higher basic coke consumption due tousle of metallic blast preheated in place of stove.  As customers expectations are increased day by day it has become difficult to satisfy them completely.OPPORTUNITIES:  As KFIL good market edge KFIL can market 20000 per month of foundry grade pig iron every month.  Can capitalize on up swings in market demand because of all India presence.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  85. 85. An Organizational Study At Kirloskar Ferrous  Focus on casting market development in Europe and Japan for OE customers.  Many multinational companies are venturing their base in India.  Growth in Indian foundry capacity.THREATS:  Government regulations.  Imposition of sales tax  Possibility of coke prices going up  Price of goods are comparatively high  Adopting auto motive machines may cause fear among the existing employees of job loss which may affect morale and productivity of employees.  New entrants in market may dilute the market share of the company. FINDINGS After making a study of the organization the following are some of the findings:  Lots of waste coming out from process.  Free and good Medical facilities  Canteen facilities are low level of satisfaction.  The authority will flow from top level to bottom level management.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  86. 86. An Organizational Study At Kirloskar Ferrous  The trend in the industry shows that the assets of the company are efficiently utilized to generate sales.  Suggestion scheme, education level, environment policy and safety measures work disciplines have scored high level on the job satisfaction.  Life span maintenance is not maintained so it decreasing regular efficiency. SUGGESTIONS  Production capacity has to increase by adopting high technical machines according to demand  Maintaining proper life span replacement may increase the efficiency of production.REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  87. 87. An Organizational Study At Kirloskar Ferrous  The Organization should take suggestions from workers and that have to be implemented seriously  By adopting more and more technological methods in production it can enter easily to global market  The organization should adopt various cost cutting measures by 1. Reduction in wastage 2. Reduction in maintenance. CONCLUSION The 5 weeks in plant training in KFIL has given a detailed knowledge of the management of an organization and a clear picture of work flow of the complex organization. KFIL is a pig iron plant which is used as a basic raw material for the production of the steel. This study has given a information of how really a big organization works by facing so many hurdles. As it is a pig iron plant it totally covered by the risks & company is successfully overcoming the problems. The culture in KFIL is very cordial and the atmosphere of the workforce is also very good which contributed to the study a lot. BIBILIOGRAPHY Company annual reports KFIL Journals REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2
  88. 88. An Organizational Study At Kirloskar Ferrous Office records Broachers WEBSITE REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE 2