Osil Marketing(Distrbution Sys)

7/31/2019 Osil Marketing(Distrbution Sys)

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A Dissertation

On

In-depth comparative analysis of distribution system of OSIL

(Submitted in Partial Fulfilment of the Requirements of Bachelor of

Business Administration Program under Utkal University)

By:

Name of the Candidate

Monalisha Das

University Roll No66317UT09025

Faculty Guide: Biswaranjan Parida

Designation:


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CERTIFICATE FROM THE FACULTY GUIDE

This is to certifythat the dissertation entitledIn-depth

comparative analysis ofdistributi

on system by its distributor to retailers of OSILfollowed byOSILis an interim report carried byMonalisha Das .The report is an outcome of extensive study on the

partial fulfilment of Bachelor Business Administration

2009-2012To the best of my knowledge and belief, the report is

prepared by the student himself. Simultaneously, the

report fulfils the rules and regulations related to the

Dissertation of the university. I wish him all the

success.

Bhubaneswar

Signature

Date:


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ACKNOWLEDGEMENT

I feel immense pleasure in presenting this REPORT TITLED

Distribution System by its distributor to retailers of OSIL.

THIS REPORT HAS been prepared with the help of many

people who have contributed THEIR VALUABLE IDEAS &

suggestions in spite of their busy schedule.

I express my whole hearted gratitude to my esteemed guide

Mr. Biswaranjan Parida for his precious guidance &necessary advice in PREPARING THIS report.

I express my thanks to OSIL for their full cooperation.I am

also greatly indebted to the management and workers of

OSIL, for their attractive cooperation during the period of

survey and data collection.Especially I would place on

records my sincere thankfulness to Mrs.Manjushree Das Dy

GM (HR&A), and I am also very thankful to my esteemed guide

Mr.D.K Mishra, Deputy Manager (sales & accounts) who

helped in the study during the period of my data and

observation in the OSIL Palaspanga, Keonjhar.

Last but not the least; I owe my Gratitude to parents who

have been instrumental both directly and indirectly in the

successful preparation of this project work.

With ever greed for gods grace

MONALISHA DAS

REGN NO.:-


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DECLARATION

I MONALISHA DAS, HEREBY DECLARE THAT THIS PIECE OF

PROJECT ENTITLED HAS BEEN PREPARED BY ME AS A

TOPIC OF MY DISSERTATION WORK.

IT IS ALSO DECLARED THAT THIS project REPORT.NEITHER

FULLY NOT PARTIALLY HAS BEEN SUBMITTED TO ANY OTHER

INSTITUTE/UNIVERSITY FOR THE AWARD OF ANY DEGREE OF

DIPLOMA. AT LAST IT NEED NOT BE MENTIONED THAT I

ALONE BEAR THE RESPONSIBILITY OF ANY SHORTCOMINGS.

NAME:- MONALISHA DAS

REGD.NO:- 66317UT09025


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CHAPTERISATION

The whole of the study has been presented in shapeof dissertation and for that the researcher hasdivided the entire study into five chapters and thesechapters are arranged in a sequential order.The first chapter deals with the introduction

conceptual framework, objective and methodology.The second chapter deals with a brief profile of theorganization. In addition it includes the historicaldevelopment process description,raw-materials etc.the third chapter deals with the structure andfunctions. The fourth chapter deals management indistribution system of finished product of OSIL. Thefifth chapter deals with some of the case studies on

the various aspects of distribution system offinished product of OSIL. The final and concludingchapter i.e. conclusion and suggestion made on theentire study and also at the end of this researchstudy.


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CONTENTS

Chapter-1

Page No.

Introduction

1.1 Meaning of the study

1.2 Objectives of the study

1.3 Significance of the study

1.4 Methodology

1.5 Sources of data collection

1.6 Limitation of the study

1.7 Review of literature

Chapter-2

Company Profile

2.1 Brief history of the company

2.2 Vision, Mission and objective of the company

2.3 Organization structure & style of work of company

Chapter- 3

Research Methodology

3.1 Methods of data collection

3.2 Tool or technique used

Chapter-4

Data analysis & interpretation

4.1 Data analysis

4.2 Data interpretation

Chapter-5

Conclusion

5.1 Findings

5.2 Suggestions

5.3 Conclusi


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CHAPTER 1

Introduction

1.1 Meaning of the study

1.2 Objectives of the study

1.3 Significance of the study

1.4 Methodology

1.5 Sources of data collection

1.6 Limitation of the study

1.7 Review of literature


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INTRODUCTION

A channel is the pipelie/path/route through which a product flows on

its way to the consumer

The marketing channel/distribution channels are sets of

independent organizations involved in the process of making a

product or service available for use or consumption.

Companys target is top achieve a growth of one million tonne of steel

making by utilizing captive iron ore and coal from its own

mines,leases for which they have already been allocated by the govt.

The capacity utilization in the company suffered due to both the above

reason although two kilns were in operation.

Waste heat goes emitted by the sponge iron plants release lots of

energy which is used for generation of power.

Usage of inferior quality coal available in India with high ash content

restrict capacity utilization.

Economic slow down has also affected sponge iron industry and growtof the sponge iron industry remains stagnant during this year. Quality

and quantity of raw materials i.e. iron ore & coal charged into kiln plays

a vital role in the capacity utilization of the rotary kiln which is used for

sponge iron making.


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Board of director

Mr C.J. Venugopal, IAS

Chairman, Non-Executive

Director, IPICOL Nominee

Dr. P.K. Mohanty Vice Chairman &

Mana in Director

Mr P. K. Paul Independent Director

(went for heavenly adobe

on 09.11.2010)

Mr L.D. Sahoo Non-Executive Director,

IPICOL Nominee

Mr B. K. Sarkar

Mr S. K. Khatami

Independent Director

Mr M. A. Khan

Director (Project &

Engineering

Mr M. Mohanty Whole time Director


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1.1 Review Of Literature

Steel is the metal of the new millennium. It is the world's most useful,economical & suitable building material. Icon Steel, with its continuous

improvement in the production process, modernization and introduction

of

state-of-the-art technology, has evolved as a supplier of choice who

profits,

cares and promises for a safer, stronger and better tomorrow. It is one

of

those few prestigious steel producing companies of the country to

obtain theISO9002 certification. The combination of superior technology, quality

control and experienced workforce has helped the company to develop

value added steel which caters to residential as well as industrial

requirement and

at the same time maintains good customer relationship.

The employees undergo extensive training to achieve technical finesse

and leadership qualities. These values include customer focus, trust inpeople, recognition, accountability, excellence, positive energy and

team work. The customer focus is so high that they have separate

systems in place to satisfy customers.

Osil process is now recognized as one of the leading coal based Sponge

Iron technology in the World and has been adopted for use in projects

funded by IDBI, World Bank (IFC) and the German Development Bank

(DEG).

OSIL have since put up a 15 MVA waste heat recovered based power

plant as well as a 1, 00,000 TPY Induction Furnace based steel billet

making plant operating with 70%-80% sponge as feed material.


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1.2Meaning Of The Study.

The distribution channel

Distribution is also a very important component of Logistics & Supply

chain management. Distribution in supply chain management refers to

the distribution of a good from one business to another. It can be

factory to supplier, supplier to retailer, or retailer to end customer. It is

defined as a chain of intermediaries, each passing the product down the

chain to the next organization, before it finally reaches the consumer or

end-user. This process is known as the 'distribution chain' or the

'channel.' Each of the elements in these chains will have their own

specific needs, which the producer must take into account, along withthose of the all-important end-user.

Channels

A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers via direct marketing or brokers can

also be used,

Retailer (also calleddealerorreseller), who sells to end

customers.

Distribution channels may not be restricted to physical products Alice

from producer to consumer in certain sectors, since both direct and

indirect channels may be used.

There have also been some innovations in the distribution of services.

For example, there has been an increase infranchisingand in rental

services - the latter offering anything from televisions through tools.There has also been some evidence of service integration, with services

linking together, particularly in the travel and tourism sectors. For

example, links now exist between airlines, hotels and car rental

services. In addition, there has been a significant increase in retail

outlets for the service sector. Outlets such as estate agencies and

building society offices arecrowding outtraditional grocers from major

shopping areas.
http://en.wikipedia.org/wiki/Dealerhttp://en.wikipedia.org/wiki/Resellerhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Crowding_out_(economics)http://en.wikipedia.org/wiki/Crowding_out_(economics)http://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Resellerhttp://en.wikipedia.org/wiki/Dealer


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Channel decisions

Channel Sales is nothing but a chain for to market a product through

different sources.

Distribution System

The most important decision element in the distribution system relates

to the issue of location of the service so as to attract the maximum

number of consumers. The first decisional variable in planningthe

distribution system relates to the location of the service. In deciding

where to locate your service?

1. How important is the location of the service to the customer?

2. Is the service, technology based or people base?

3. How important are complementary service to the location

decision?

The second decisional variable in the distributional system is whetherto sell directly to the customers or through intermediaries. The

decisional variable in the distribution system is how to provide the

service to maximum no. of customers in the most cost effective manner.

There are two types of market in OSIL.

. Buyer Market

. Seller Market

Buyer Market

a) Price detected

b) Decreases prices when steel, billet demand decreases

c) Current market situation is buyer market


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Seller Market

When demand increases for product, then price up on that

moment for a particular product

In the year 2004-05-06-07 market share seller detected the price on

F-9 & road

The channel decision is very important. In theory at least, there is a

form of trade-off: the cost of using intermediaries to achieve wider

distribution is supposedly lower. Indeed, most consumer goods

manufacturers could never justify the cost of selling direct to their

consumers, except by mail order. Many suppliers seem to assume

that once their product has been sold into the channel, into the

beginning of the distribution chain, their job is finished. Yet that

distribution chain is merely assuming a part of the supplier'sresponsibility; and, if they have any aspirations to be market-

oriented, their job should really be extended to managing all the

processes involved in that chain, until the product or service arrives

with the end-user. This may involve a number of decisions on the

part of the supplier:

Channel membership

Channel motivation

Monitoring and managing channels

Type of marketing channel

Intensive distribution - Where the majority of resellers stock the

'product' with convenience products, for example, and particularly

the brand leaders in consumergoodsmarkets (price competition

may be evident).

Selective distribution - This is the normal pattern (in bothconsumer and industrial markets) where 'suitable' resellers stock

the product.

Exclusive distribution - Only lambard specially selected resellers

orauthorized dealers(typically only one per geographical area)

are allowed to sell the 'product'.
http://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/w/index.php?title=Authorized_dealers&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Authorized_dealers&action=edit&redlink=1http://en.wikipedia.org/wiki/Goods


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Channel motivation

It is difficult enough to motivate direct employees to provide the

necessary sales and service support. Motivating the owners andemployees of the independent organizations in a distribution

chain requires even greater effort. There are many devices for

achieving such motivation. Perhaps the most usual is `incentive':

the supplier offers a better margin, to tempt the owners in the

channel to push the product rather than its competitors; or

compensation is offered to the distributors' sales personnel, so

that they are tempted to push the product. Julian Dent defines this

incentive as aChannel Value Propositionor business case, with

which the supplier sells the channel member on the commercial

merits of doing business together. He describes this as selling

business models not products.

Monitoring and managing channels

In much the same way that the organization's own sales and

distribution activities need to be monitored and managed, so will

those of the distribution chain.

In practice, many organizations use a mix of different channels; in

particular, they may complement a direct sales force, calling on

the larger accounts, with agents, covering the smaller customers

and prospects. These channels show marketing strategies of an

organization. Effective management of distribution channel

requires making and
http://en.wikipedia.org/wiki/Channel_Value_Propositionhttp://en.wikipedia.org/wiki/Channel_Value_Proposition


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Alternative channels of distribution

The channels of distribution can be grouped under two major headings:

For direct selling the first option involves supplying the

product to the customer using your own sales man and

arranging your own deliveries. The second option is using the

medium of post office.

The functional middleman is those intermediaries who

perform various marketing functions without having tittle to

goods. More important of them are mercantile agents like

brokers and commission agent. On the other hand, merchant

middleman obtainstitle to the goods with the view to selling

them at a profit. They take the risk involved in marketing and

work not for a certain percentage of commission but for a

margin of profit. They are whole sellers and retailers.

Direct Selling by

Manufacturers

Indirect Selling

through Middle man


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1.3 Objectives Of The Study

The objective of the study is confined only to theOSIL,Palaspanga,Keonjhar.

The main objectives of the study of the project are:- To

determine-

What activities & functions need to be performed by the

company.

Which channel intermediaries can perform these

functions. What are the service level reqirements that channel

intermediaries require from an organisation & vice-

versa.

Research Objective:

Main Objective:The objective of this project is to study the effectivenessof the distribution channel of OSIL by its distributor toretailers

Related objectives:

1) To study the effectiveness of retailer satisfaction

towards distributor.

2) To study the performance of OSIL distribution channel.

3) To study the service level provided by OSIL to its

retailers.


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1.4 Significance Of The Study

Manufacturing Industry is one of the major public sectors in India.

This industry plays a major role in the economic development of a

nation.

From the first five year itself the Government of India has emphasized

on

the Manufacturing Industry. This industry is considered as the core

industryin every economy of the world.

Channel decision refers to the managerial decision on the selection of

best routes or paths for moving goods from the producer to the

consumer. Channels of distribution are concerned not only with the

physical movement of the goods but also with their promotion,sellingand marketing control. Channels of distribution are the most powerful

element among marketing channel mix elements.

Channel of distribution help movement of goods from one place to

another and thus create place utility. They bring goods to the consumer

in a convenience value. They make it possible for the consumer to

obtain goods at a price he is willing to pay and under conditions, which

bring him satisfaction and pride of ownership and thus createpossession utility.

The present study has been undertaken because of its importance in

the professional field and also in the Academic field. As for the

professional importance is concerned during the whole study the

researcher has helped him to know various theories that are being put

into practices in an organization. Besides this, the other importance is

academic in nature as is require for a student, which is purely Academicobligation.


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1.5 Methodology

Methodology is the systematic study that guides the scientific

investigation. For the purpose of the study both case studymethod and survey method have been undertaken. By

adopting the case study method it is attempted to understand

in details the various aspects of marketing strategy which

play an important role to achieve MARKETING DEPT

objectives in maximisation of sales. .

A Research is purely and simply the framework or plan for a

study that guides the collection and analysis of data. A

research is a blueprint that is followed in completing a study.

It is a scientific inquiry. It is a process leading to discovery of

facts, how they are related, etc. A scientific inquiry leads to

growth of knowledge. Research is a systematic inquiry and

has three essential characteristics i.e. objectivity, accuracy &

continuity.

Methodology has an important bearing on the collection of

reliable information as well as on the outcome of the study.The categorization of the proposed investigation into certain

type of research, a corresponding method or methods for it

and appropriate technique for collecting and analysing data

together known as Methodology of Research.

The aim of any kind of study, whether scientific or otherwise,is to acquire knowledge, to know the truth and reality behinda phenomenon. In order to do this, some scientific and

systematic observations, classifications and interpretationsof data are highly necessary.


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1.6 Sources of Data Collection

The relevant data regarding study were collected from both the

sources, i.e. the primary sources and secondary sources.

1. Primary sources:-The following served as primary sources of

information.

(a) Management representative.

2. Secondary sources: - The following served as secondary

sources of information.

(a)Different websites

(b) Records, documents and files.


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1.7 Limitations Of The Study

However I have tried my best in collecting the relevant information

for my research report, yet there were always some problems

faced by the researcher. The prime difficulties which I have

face in collection of information are discussed below:-

1. Short time period: The time period for carrying out the

research was short as a result of which many facts have been

left unexplored as it becomes difficult on the part of the

researcher to collect all required information within a period

of one month.

2. Lack of resources: Lack of time and other resources as it

was not possible to conduct survey at large level

3. Inadequacy & non-availability of statistical data: Statistic

has not always been complete and uniform and sometimes

the management was reluctant to show the records because

of its secrecy.

4. Small area for research: The area for study was

Palaspanga, which is quite a small area to judge marketing

strategy level.

5. Executives lack interest : It is also found that some of the

executives lack interest, enthusiasm, initiative and

involvement, which in turn demotivates the researchers.

Despite all these limitation the researcher tried his level best

to bring out a bias free project on distribution system of

finished product of OSIL.


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CHAPTER 2

COMPANY PROFILE

2.1BRIEF HISTORY OF THE COMPANY

2.2VISION,MISSION AND OBJECTIVE OF THE COMPANY

2.3ORGANIZATION STRUCTURE & STYLE OF WORK OF COMPANY


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2.1 Brief History Of The Company

BACKGROUND OF OSIL:

The Comp. was incorporated as a Public Limited Comp. on 9thApril, 1979. The Comp. was promoted in the joint sector by theIndustrial Promotion and Investment Corporation of Orissa Ltd. &Torsteel Research Foundation India [TRFIs].

OSIL is located at the Palaspanga in the district of Keonjhar,Orissa. This plant was initially built to operate an allies chambers

controlled atmosphere reactor (ACCAR) process. Originally itdeveloped by M/s Allies with coal and oil, now it operates with theirown development process which is 100% coal based called OSILprocess. An undertaking of OSIL was in between industrialdevelopment corporation of Orissa limited (IDCOL) and Orissamining corporation (OMC) and the group had subsequently signedan agreement with Mineral and Metal Trading Corporation of Indialimited (MMTC) to implement a project on iron making withprovision for steel making at a later stage of a suitable location in

Orissa and OSIL has decided to implement this project.

Orissa sponge iron and steel limited was formed with a view torear up and popularize an infant technology for manufacturingsponge iron as a joint sector project with two major promoter thatis Industrial Promotion and Investment Corporation of India limited(IPICOL), which is an undertaking of Government of Orissa andTorsteel Researcher foundation of India, which is a consortium ofmini steel plant dedicated for improving the quality of steel

manufactured in the country. Sponge iron is used as a rawmaterial for making steel through secondary route by electricfurnaces. This new technology was born out of a pressure from theeconomy to find an alternative route for steel making by using noncooking coal reserve depleting very fast. Keeping in this view ofOSIL, set up its sponge iron plant in the district of Keonjhar, Orissain 1979 as the first in the commercial plant. In the country the plantwas based on technology was tested on a commercial skill,charmers corporation of USA. When this technology was testedon a commercial scale many problems were encountered. Therewas a urgent need for a commercially variable technology suiting


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to the raw material available in the country .OSIL continued itsR&D effort and finally evolved a new technology which was

patented as a OSIL process. This has made OSIL to become thefirst indigenous know how supplier competing with the foreignstalwarts like LURGI, KRUPS etc. In the Indian market. OSIL hassupplied process of technology to M/S Sun flag iron and steel,Nagpur and M/S Usha Beltorn in Jamshedpur for their spongeiron plant .OSILs next job was to popularize the use of spongeiron in electric furnaces.

It has a team of technology services personnel visiting mini steelplant to learn the process, problem and educate on the use of

sponge iron. It has also set up its own electric arc furnaces during1944-45 for practical demonstration by virtue of its preservance.Use of sponge iron and mini steel plant has increased to morethan 60% of the raw material mix. Indian economy was watchingand waiting for this infant technology to prove itself as soon as thesame was established a flood gate was opened for new unit in theeconomy. Today the country has about 200 plants of sponge ironand steel production by electric arc furnaces. It has gone up to45% of the total steel production. OSIL commissioned a captive

power plant during the year 2001 to generate 10 mw powers out ofits waste gas. Subsequently it has installed a coal fired boiler toexpand the generation capacity to 12 mw.

HISTORY OF THE OSIL

Indian Steel Scenario in early seventies was looking up withsubstantial addition in capacity in secondary sector through arcfurnace route. This required substantial quantities of scrap. At thattime all over the world, development was taking place forsubstitution of melting scrap by DRI (Direct reduced iron,commonly known as Sponge Iron). Sponge Iron productionthrough gaseous reduction was already established world-wide,but production using non-cocking coal was in its infancy.


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It was in this back drop that Tor-Steel Researcher Foundation inIndia (TRFI), a research and development organization in the field

of civil and structural engineering, with its bias for innovation, tookthe first step to promote a commercial coal based sponge ironplant based on ACCAR pilot plant studies made by AlliesChalmers Inc. of United States of America.

OSIL, was thus conceived and established in the year 1979 underthe aegis of TFRI and Industrial Promotion & InvestmentCorporation of Orissa ltd.(IPICOL, A Government of OrissaUndertaking) with a 100000 TPA coal based Sponge Ironproduction facility in the backward district of Keonjhar in Orissa.

The idea was to promote development of a backward region of abackward state of India creating employment potential for the poorpeople of this state while at the same time exploiting the mineralsfound in the region thus, multiplying manifolds the employmentpotential.

OSIL AT GLANCE:

Orissa Sponge Iron & Steel Ltd. (OSIL) was promoted in the year

1979. It was the first 100,000 TPA commercial scale coal basedSponge Iron Plant in our Country and one of the first few in theWorld. The Plant went into commercial production in 1984 withprocess technology from Allis Chalmers Corporation of U.S.A.using 80% coal and 20% oil. With increasing crude oil price, use ofdiesel oil became uneconomical. Further the process demandedhigh grade of coal, stock of which is depleting worldwide and didnot accept Indian coal with high ash content. The processtechnology was later modified and developed to use 100% coal

and patented by OSIL and is now known as OSIL PROCESS. Thestrength of OSIL PROCESS is in it's ability to use coal with highash content and low fixed carbon without compromising on qualityof product.

OSIL PROCESS is now recognized as one of the leading coalsbased Sponge Iron technology in the World and has been adoptedfor use in projects funded by IDBI, World Bank (IFC) and theGerman Development Bank (DEG).


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OSIL have since put up a 15 MVA power plant using energy fromthe Sponge Iron Plant waste gas and waste coal char & coal dust

as well as a 1,00,000 TPY Induction Furnace based steel billetmaking plant using its sponge iron feed stock and self-generatedpower for melting. The total integral steel plant is self- sufficient inpower generated from Sponge Iron Plant waste product.

OSIL have also promoted a 100% Export oriented plant forproduction of fruits and vegetable pulp and concentrate at a cost ofnearly Rs 20 Crores so that fruits and vegetables grown in thetribal area can find a ready market. There is also another

institutioncalled OSIL-TRFI COMMUNITY SERVICES LTDengaged in community development work covering health,sanitation, water, supply, education, water shed development,agriculture and horticulture services, dairy development, bio-gasbased energy development and so on.


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2.2 Vision, Mission And Objective Of The Company

MISSION: To grow as a model industry with high degree of

business ethics and serve the community by contributing to their

socio economic aspiration.

VISSION: A society built in trust & free from minimum wants.

OBJECTIVES:

Continual improvement in quality & environmental

management system & process

Employees participation & improvement to achieve quality &

environmental targets.

Commitment to ethical business process.

The Comp. proposed to associate with a joint effort with the State

For processing fruits & vegetables grown around the plantsite areas & districts, primarily for export purposes.

The Comp. also associated in assisting the promotion oflarge pig iron unit in Orissa from where it hoped to getsufficient hot meal to blend with its own sponge to makebillets.


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In 1995 - The Comp. proposed its second phase of expansionfor setting up 9 MW powerplant using waste heat of kiln.

The Comp. undertook to set up a separate Comp.together with an international Comp. for manufacture ofsteel billets at Patna, Bamra, district Sambalpur, Orissathrough sponge iron waste heat & waste coal power -electric furnace & continuous caster route. The projectenvisages setting up a project to manufacture lightsections in a rolling mill complex with an installed

capacity of 3, 00,000TPA.

The Comp. undertook to set up a one million tonne capacity ironand steel project in association with State Government.

Orissa Sponge Iron and Steel firmed its plan for setting up of aone million ton integrated steel plant, reports Business Line.

The company is also believed to have received environmentalclearance for its iron ore mines. The estimated reserves of ironore mine is 130 million tons said to be worth on a conservativebasis over Rs 750 billion.

The company has also obtained coal mining lease in the Orissaworth over Rs 100 billion


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2.3ORGANIZATION STRUCTURE & STYLEOF WORK OF

COMPANY

Steel sector represents around Rs. 90,000 crore capital& directly

provides employment to over 5 lakh people in the country. The

Indian steel sector was the first core sector to be completely free

from the licensing regime and the pricing and distribution control.

The Indian steel industry comprises integrated steel

plants in the primary sector using BF-BOF route of iron and steel

production.

The secondary sector constitutes Electric Arc

Furnaces/Induction Furnaces, pig iron/sponge iron.

Organisation mainly attention on the structure and process of

allocating jobs so that common objective can be achieved. The

organisational chart reveals that the people employed and network

of the relationship among them. It shows the direction ofdelegation of authority and fixes responsibility for accountability. It

helps to stream line the communication system. Management not

only confine to industries, factories but also extend to shop

business enterprises and so on. It is another term and its offspring

are production and management, personnel management and

business management.

In organisational structure the superior and subordinate

relationship are defined organizational chart which are formal

documents that indicate the chain of command and the title that

have been assigned to the managers and other personnel. The

chart guide to official relationship. Organizational chart indicate

employees location and position in the hierarchy and their

relationship within a formal organization.


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The chart is explained below:

BOARD OF DIRECTORS

CHAIRMAN

VICE-CHAIRMAN CUM MD

COOCEO - CMO

GENERAL MANAGER (GM)

SENIOR DGM

ADDL. GM


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DGM

SENIOR (SR.)

MANAGER(MGR)

ADDL. SR. MGR

MGR

DY.MGR

ADDL.DY.MGR

ASST.MGR


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SR.GF

S.R.G.OFF

G.F

GEN. OFFICER

AGF

AGO

SR. OFFICER

SR. FOREMAN

FOREMAN

OFFICER

ASST. FOREMAN

ASST. OFFICER


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THE OSIL PROCESS: The plant was commissioned in March

1983. The technology was new and the plant faced severe

operational problems. Oil price increase compounded theproblems further threatening the very existence of the plant.

Process developments had to be carried out in-house to substitute

the liquid proportion of the reductant, which the original process

used and to successfully adopt to the local coal qualities. This was

essential to make the process economically viable. After

painstaking R&D work a new developed dispensing with the liquid

fuel and same was popularly known in the market as OSIL

Process.

RAW MATERIAL AND PRODUCTS

The raw materials are used for SPONGE IRON-Iron ore, Coal,

Dolomite/Limestone.

BILLETS-steel scraps

STEEL SCRAPS-Sponge iron, Cook &

ferroalloys

The above raw materials are converted into finished products

of sponge iron and its by-products are coal char and billets

and its by-product is slage.

QUALITY OF PRODUCT

The sponge iron is basically produced by removing the

oxygen from the iron ore. It directly reduced iron ore oxygen

from the major part of the iron oxides having been removedthere by converting the oxides to metallic iron for better

melting results. The quality

considerations for sponge iron are

High total iron content

High degree of metallization

Low gauge, sulphur and

phosphates

Suitable size, shape and


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range.

PROCESS DESCRIPTION The OSIL PROCESS uses a long

cylindrical vessel known as reactor(The rotary kiln) for the

reduction of iron in the solid state. The iron ore and non-

coking coal along with Limestone/Dolomite is fed from the fed

from the feed end of the kiln at a calculated proportion. The

kiln rotates continuously and being at a slope, the material

flows towards the discharge end. Process air is fed radially

through a number of ports, which are spread along the lengthof the kiln.

A portion of the total coal requirement is slung into the

reactor pneumatically from the discharge end of the kiln. The

granulometry of this coal falls in the desired area of the

reactor. These help in uniform reduction and also prevent

carbon starvation in any part of the reactor. The coal suppliedacts as reductant and also sustains the process by giving

heat energy. A temperature of 1070 C is maintained to carry

out the reduction process. Various devices are provided to

monitor & control the temperature and process air. The

retention time in the reactor is about 11 hrs.during which

+90% metallisation levels is obtained.

The hot sponge iron & coal char then go to a rotary

cooled indirectly by spraying water .sponge iron at a

temperature of about 100C comes out the cooler in less than

an hour. The product is magnetically separated to take out the

char and then screened to segregate lumps & fines. These are

stored in separate product bins.


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PROCESS & PLANT DESCRIPTION

A process and material flow sheet of the DRI plant is as

given below

MAJOR UNIT/ PRESENT STATUS OF OSIL

At present manufacturing unit of OSIL at Palaspanga

comprises of

1. One rotary kiln of 150,000mt capacity per annum

producing sponge iron.

2. One billet plant with three furnaces with total capacity of

100,000mt of steel billet per annum.


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3. One captive power plant-1 having capacity of 12MW and

captive power plant-2 having capacity of 24MW.

In addition, OSIL has a Project and Engineering division

providing construction support on a contractual basis and

for supplying sponge iron to buyers.

OSIL WORKS :

Orissa Sponge Iron and Steel Limited (OSIL) is a

professionally managed engineering based companyproducing over 100,000MT of sponge iron, 100,000 MT of steel

billets and 15MVA of power. OSIL is located in Keonjhar

district not more than 40 Km of major coalfields & in the heart

of iron ore mines. The company has a turnover of Rs.1.2

billion and profits of over Rs.80 million in 2004. OSIL has been

a dividend-paying company, with a net worth of over Rs. 320

million and an asset base of Rs.1 billion. OSIL organisational

strength includes over 200 engineers and technical staff and a500 strong workforce.

COAL BASED DRI PLANT (PALASPAGA, KEONJHAR) The

Coal based DRI Plant was set up and commissioned in 1983.

A mixture of sized iron ore and sized coal along with flux

(limestone/dolomite) is charged with proportion through

material handling systems to a 4mtr.dia x 84 metre.

Longported rotary kiln. The kiln is equipped with air injectionsystem to provide air for generation of necessary heat

required for the process inside the kiln. Iron ore after due

reduction inside the kiln is discharged to a rotary cooler of 3.5

mtr.dia.x 50 mtr. long for cooling the DRI from 10000C .The

DRI (metallic) and the nonmetallics like unused coal, coal ash,

etc. discharged from the cooler and conveyed by conveyors

to a product processing building where screens and magnetic

separators are provided for separation of magnetic and non-magnetic and screening of DRI for lumps & fines. Cooling of


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the DRI is carried out by indirect cooling method, i.e. spring of

water on the outer surface of the cooler. For the main plant,

the utilities like water system, compressed air system are

provided. The off-gas going out of the kiln is passed through

a DustSettling Chamber, After Burning Chamber Boiler, ESP &

Stack.

STEEL BILLET PLANT The steel Billet Plant of capacity 60,000

TPA has been set up through induction furnace. Two

electrical systems with 4 nos. of crucible of 8.5 T capacity

each have been set up. The induction furnace uses about 75

to 80% of DRI. The induction furnace is basically melting units

for which good quality metallic are used. The plant is

equipped with 2 nos. Of 20/5T crane to facilitate charging

through magnet and liquid steel handling It was envisaged

that liquid steel from the induction furnace will be tapped at

about 16000C and will be superheated in the induction furnace

to about 16700C and after necessary homogenisation by ladle

by using purging systems taken to the caster for casting. The

caster is of 4 mtr. radius with 2-strands capable of casting 10

T metal in 25 minutes. The plant is also equipped with water

treatment plant,emergency water cooling system.

THE POWER PLANT The Captive Power Plant was planned to

utilise the sensible heat contained in the kiln waste gas. It was

estimated that from the quantity of energy available in the

waste gas about 40 tons per hour of steam could begenerated and accordingly taking a margin the Boiler was

configured for 42 tons per hour capacity. The electrical

demand from the DRI plant is more or less steady. However,

the electrical demand of the mini steel plant is fluctuating and

some times may go beyond its maximum demand of about

6300 KW. Looking into all these aspects and suppliers

standard sizes, the Turbo-Generator selection was made to 12

MW. The plant comprises the following major units: -


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1. Waste Heat recovery Boiler (WHRB)

2. Atmospheric fluidized bed combustion Boiler (AFBC)

3. Turbo Generator Units

The plant is at present operating in idle mode & has been

catering to the complete in-house energy requirements of the

DRI and the steel billet Plant. OSIL has received the host

country approval for 10MW Waste Heat Recovery based

Captive Power Plant from National CDM Authority.

The methodology submitted by OSIL has been adopted by

UNFCC as combined methodology for all projects generating

power from waste heat / gas on 10th July 2005.

OSILs Waste Heat power plant project has been validated as

a CDM project by TUV Rheinland and the project will be

registered on 14th October 2006

A shortlist of activities where OSIL (P&E) is associated is

enumerated bellow:

1 SUNFLAG IRON & STEEL CO. LTD (SISCO):

M/s Sunflag Iron & Steel Co. Ltd., have a unit of DRI

Plant having a rated capacity of 150,000 TPA built with

overseas technology. However, the plant operation

could not be optimised over a long period. In 1991

Sunflag approached OSIL to assist in optimising their

operation. OSIL studied their plant parameters,

identified the points of non-compatibility and

recommended modifications with engineering support.


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2 LOYDS METALS & ENGINEERS LTD (LMEL):

This project was conceived with 2x150000 TPA DRI Reactor

with a provision for Power Generation and Steel Making. It is

located at Ghugus in Maharastra. In its first phase of

implementation, they have installed 1x150000 TPA DRI

Reactor with all associated service units/systems by Sept.

1995. This is the first plant, built with OSIL technology. OSIL

engineered the total plant, supervised manufacturing of the

equipment, erection of the equipment. OSIL also

commissioned the plant and demonstrated the performance

guarantees. The plant is in operation since 1996 using coal

from the mines in the vicinity of plant. The coal is highly

volatile having high ash content and lower fixed carbon. The

coal is very fragile and breaks down inside the kiln. No other

DRI process can utilize this type of coal.

3 OSIL STEEL WORKS:

It is a 50,000 TPA Steel Billet Plant put up by OSIL at

Palaspanga, Keonjhar. The plant comprised of 2 nos. of 8.5T

MF Induction Furnace, 2 Strand 4m dia. Continuous Billet

Caster, 2 Nos. 20/5T EOT Crane, 2 Nos. 10T EOT Crane, Water

Treatment System and other associated facilities.

The Billet Plant is put up to maximise the melting of sponge

iron in steel making, thus set a trend for the steel industry. It

was conceived and put up by Project & Engineering Division

of OSIL, who have rendered the following services for the

project.

- Basic engineering of 50,000 TPA Steel Billet Plant with

all allied services/ facilities;


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- Procurement of plant and machinery;

- Design and engineering of civil & structural of the plant

building

- Monitoring the project activities;

- Supervision of erection and commissioning of the total

plant and equipment;

The entire engineering and execution was done by Project &

Engineering Division of OSIL. This shop has been expanded

to produce 100000 TPA steel billet with minimal investment.

4 NEELACHAL ISPAT NIGAM LTD (NINL):

It is a 1.0 MT Integrated Steel Plant, then jointly promoted by

Govt. of Orissa, OSIL and MMTC. The total project was

conceptualised by OSIL and took the responsibility of project

management. But later MMTC took over the project and OSIL

withdrew from the panel of Promoters. During its period of

association, OSIL as the lead Promoter did the following

activities to execute the project.

- Several technological search visits by a team of

professionals from OSIL, MMTC and MECON to

countries like Italy, Mexico, Canada, China for selectionof plants like Blast Furnace, Sinter Plant, BOF, large size

structural mill, Billet Caster, Rolling Mills etc.

- Finalisation of the contract with ILVA, Italy for

procurement of one no. Used Blast Furnace of capacity

of 1915m3 and dismantling of the BF in Italy.

- Arrangement for refurbishing of Blast Furnace.


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- Preparation of feasibility reports with various options

through MECON;

- Selection of site and preparation of land schedule;

- Preparation of land survey ,soil investigation and EIA

and EMP report including reports for various statutory

clearances;

- Initiation of development of infrastructures like Railway,Power, Water- supply, Mining, Road etc.

- Route survey for transport of raw material from linkage

points, plant and machinery from Paradeep Port;

- Finalisation of plant layout;

- Finalisation of Basic Engineering for raw material

handling system;

- Finalisation of raw material linkage;

- Floating enquiry for procurement of BOF, Billet Caster,

Wire Rod Mill, Power Plant civil and structural package,

LRF, Ladle and Torpedo, PCM, Sinter plant, Oxygen

Plant etc.

- Discussion with QUAD Engineering of CANADA for large

size structural mill.

5 WASTE HEAT POWER PLANT :

For proper utilisation and management of flue gas of the DR

Plant and the associated waste heat energy, OSIL conceived


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and executed a 10 MW Waste Heat Power Plant with in-house

engineering and execution resources.

OSIL executed the complete project based on actual field

studies on reactor flue gas and site conditions, sizing all

major equipment to optimum rating, designing the complete

system with inputs from major equipment suppliers,

procurement of plant and equipment from indigenous and

foreign sources, integrating and interfacing them with the

existing facilities. The plant was erected and commissioned

by OSIL in mid May 2001 and it has been operating

successfully by generating about 8 MW on average since

then. Another AFBC Boiler of 30 T/hr steam capability has

been added to produce 13.5 MW by utilizing the same TG.

6 SINTER PLANT OF NINL :

During its association with NINL as Project Management

leader, OSIL had established strong business relationship

with several Chinese manufacturing & design engineering

firms. After its withdrawal from NINL, OSIL together with

CSGC/AERIMI of China & Otto India Ltd. Of India, a Thyssen-

Krupp company, bid & successfully bagged in a global

tendering, NINLs Sinter Plant contract, which has beencommissioned since March 2004. The discreet turnkey

contract valued at 20 million Dollars (approx.) includes the

following services:

Basic Engineering services of the entire 180 sq.m Sinter Plant

for production of 1.7 million tons of BF Sinter.

Detail Engineering services for critical plant & equipment

including support structures.


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Supply of critical FOB & Indigenous equipment

Supervision of erection & commissioning

Performance Guarantee & Post Commissioning Services.

7 USHA MARTIN INDUSTRIES LTD.(ALLOY & STEEL

DIVISION) :

8 OSIL DRI 2ND LINE:

OSIL is setting up its second sponge line of 500 TPD at

Palaspangaalong with 24 MW Captive power plants (FBC&

WHRB) .The project is under final stages of commissioning.

Complete engineering, Usha Group has set up one module of

100000 TPY Coal based DRI Plant for captive use at its

Gamharia site. OSIL Process has been adopted for the

proposed plant. The plant has been commissioning in August,

2004.

OSIL provided the following services: -

- Basic engineering, know-how and training

- Design & engineering of core plant

- Design, engineering & supply of proprietary equipment

- Supervision of erection, testing & commissioning and post

commissioning services

- Inspection during manufacturing of core equipment

OSIL PROCESS was adopted by Usha Martin Ltd. after it was

approved by their financial institution, IFC, Washington &

DEG of Germany.


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After successful operation of the plant Usha Martin has

placed a contract with OSIL for the second 350 TPD DRI Plant

in May,2006.

procurement services, supervisory services etc are beingprovided by the Engineering and Project Division.

9. RATHI UDYOG LTD.Rathi udyogLtd. is setting up one

module of 500 TPD Coal based DRI Plant at its Sambalpur,

Orissa site along with 20 MW captive power plant and 100,000

TPA Steel Billet Plant. OSIL Process has been adopted for the

proposed plant.

OSIL is providing the following services: -







The DRI Plant is scheduled to get commissioned in Jan 2007

and Power plant by 15thMarch07.

10. PATNAIK STEEL AND ALLOYS LTD.

Patnaik Steel and Alloys Ltd. is setting up one module of 350

TPD Coal based DRI Plant at Keonjhar, Orissa along with 15

MW captive power plant . OSIL Process has been adopted for

the proposed plant.

OSIL provided the following services: -



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The DRI Plant is scheduled to get commissioned in Jan 2007and Power plant in March2007.

IRON ORE MINE :

The Iron Ore Mine is located 30 kms from OSIL Palaspanga

Plant. OSIL iron Ore mine has been granted to meet the iron

ore requirement for our existing and proposed plants.

GROUP PROFILE - COLOSSAL CONGLOMERATE.

CONVERGING COP TORSTEEL RESEARCH FOUNDATION IN INDIA (TRFI)

TRFI is a well-known institution responsible for developing

the production of high strength reinforcing steel, high

strength structural steel, ductile iron pipe production and coal

based sponge iron production in the country. TRFI is the

promoter of OSIL.It was started in 1967 basically to transfer

Torsteel manufacture technology to India Entrepreneurs.Through consistent efforts, within short periods of about

three years, Torsteel could be established through out India

as a reinforced concrete structure.

The organisation was indianised in 1976 It is well respected in

the community of

Consulting and design engineers and has published or

supported the publication of much technical and designliterature, handbooks well as sponsored basic and applied


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research over three decades. At present, 26 mini steel

plants/rolling mills are under TRFI licence in south India for

manufacturing Torsteel. TRFI diversified to offer the following

services in the field of civil engineering:

Consultancy & Advisory Services

Proof checking of Structural Designs

Structural Evaluation of Old & New structures

Restoration & Rehabilitation of Structures

Non- destructive Testing of R.C. and steel structures

Soil Investigation & Foundation DesignsLaboratory & Field Testing of Building Materials &

Components

Quality Control /Audit of Constructions

Dissemination of technical knowledge

Training programmes on computer Applications in civil

Engineering

A few of TRFIs Clients have been:

Central and State Governments

Department of Space

Military Engineering Services

Hindustan

Aeron

Railways

Singapore Information Technology Park

Reserve bank

konan

Major construction companies etc

TRFI pioneered in the production of RIBBED TORSTEEL,

HIGH STRENGTH STRUCTURAL STEELS HY-TEN, DUCTILE

IRON PIPES, and TOR-KARI.

MATERIAL TESTING:


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TRFI carrying out laboratory through out the country for tests

on building materials such as cement, aggregate, brick, block,

timber, tile, rebar, structural section, etc. as per relevant

Indian Standards.

TECHNICAL SERVICE:

TRFI provides metallurgical, technical Engineering, Process

engineering, services. To its leading licensees. TRFI also

provides technical and design assistance to consulting

design assistance to consulting engineers and consumers

with a view to promote rapid and scientific utilization of its

products through its officers located in offices around the

Country, including Calcutta, New Delhi, Mumbai, Chennai,

Bangalore and Hyderabad.

ORISSA SPONGE IRON LIMITED

OSIL was the result of the TOR group's commitment to

promoting technological advancement in steel making.

BAMRA IRON & STEEL COMPANY LIMITED

M/s Bamra Iron & Steel Co. Ltd. is being promoted by OSIL

and its associates to set up integrated steel plant in the

western & backward district of Orissa.

PRECISION TECHNIK(PVT.) LIMITED

A small precision sheet metal working unit which made

telecom panels, c ame up with the idea of using the sametechnology to produce everything from doors and windows to

car bodies ingenuity that helped us to see beyond the

visible.

TORSTEEL LIMITED

. Idea to make steel directly available to small

customera much required idea that will provide even the


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smallest customer the confidence of buying steel from a

leading steel maker.

BILATI (Orissa) Limited

OSIL along with State Government and M/s Ing. A. Rossi, an

Italian company

has set up a state-of-the-art food processing unit in the tribal

dominated area of Keonjhar to process for export in local

horticultural products, namely, tomato, mango, guava,

papaya, etc.

ORIQUA LIMITED

TRFI and UNITECH have together promoted a prawn hatchery

culture farm in the coastal belt of Orissa. The project is

unique in nature and has technological tie up with Taiwan firm

for intensive prawn farming.


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OSIL - IMPROVING THE QUALITY OF LIFE

OSIL BELIEVES THAT THE PRIMARY PURPOSE OF BUSINESS IS TO

IMPROVE THE QUALITY OF LIFE OF PEOPLE.OSIL VOLUNTEERS ITS

RESOURCES TO SUSTAIN & IMPROVE A HEALTHY & PROSPEROUS

ENVIRONMENT & SHOULDERS ITS COMMUNITY INITIATIVES AS A PART OF

ITS SOCIAL RESPONSIBILITIES.

OSIL HAS SET UP A MODERN TOWNSHIP AT PALASPANGA WITH THE

FINEST MUNICIPAL & CIVIC AMENITY, SCHOOLS, HOSPITALS, SPORTS,

COMPLEX, PARKS& GARDENS ETC.


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COMMUNITY SERVICE THROUGH OSIL-TRFI COMMUNITY

SERVICES

TARGET 30 VILLAGES IN THE SURROUNDING AREA

RURAL HEALTH CARE

PROGRAMMES

Mobility support for universal

immunization.

Trained 158 ladies for health consciousness along with

Health Education Books.

Providing each Anganwadi centre with a replenish able fund

for emergency treatment ofpregnancy.

Distribution of medicines & ORS packets during diorrhoea

seasons.

Medicines and diet to tackle

malnutrition in babies.

Supply of nutrition to underweight

children aged 6 months to 2 years

currently above 350 nos.

Deworming of children above 10

months.

Village Health Camps

In 2004-05 11 camps were conducted to

treat 3431 patients.

3 exclusive Malaria Camps were also

conducted.

Support to Primary Education

Financial Assistance for universal education.

Material assistance for repair of 6 primary school buildings.


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Financial support for sanitation and hygiene facilities in 20

schools.


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CHAPTER 3

Research Methodology

3.1 Research design

3.2 Methods of data collection

3.3 Tool or technique used


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Research methodology describes how the research

study was undertaken. This includes the specifications of

Research design

Source of data

Method of data collection and

The tools used.

GEOGRAPHICALAREA

The study is conducted in Palaspanga, Keonjhar.

PERIOD OF COVERAGE:

The duration of project work is about 35 days


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3.1 RESEARCH DESIGN Types of Business Research

Applied Research

Applied research is research accessing and using some part

of the research communities (the academys) accumulated

theories, knowledge, methods, and techniques, for a specific

often state, commercials or client drive purpose. It is often

opposed to pure research in debates about research ideas,

programs and projects.

Applied

ResearchHistorical

Research

Exploratory

ResearchExperimental

Research

Ex-post-

facto Case study

Approach

Descriptive

Research


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Historical Research

It is a procedure supplementary to observation in which the

research seeks to test the authenticity of the reports or

observation made by others.

Historical research is descriptive research that involves

describing and interpreting events, conditions, or situations

of the past. Its with all history, the purpose is to study the

past in order to understand the present, and may be to plan

for the future.

Exploratory Research

It is type of research conducted because a problem has not

been clearly defined. Exploratory research help determine the

best research design, data collection method and selection ofsubjects.

Given its fundamental nature, exploratory research often

concludes that a perceived problem does not actually exist.

Experimental Research

It is a systematic and scientific approach to research in whichthe researcher manipulates one or more variables and

controls and measures any change in other variables.

Experimental research is often used where:

i) There is time priority is casual relationship

ii) There is consistency in a causal relationship.

(A cause will always lead to the same effect)

iii) The magnitude of the correlation is great.


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Ex-Post-facto Research

It is concerned with non-manipulated variables of a

phenomenon. Much of what is generally emphasized is

descriptive research in which hypotheses are formulated and

tested while studying the phenomenon by its own setting.

Classification:-

a) Explanation

b) Historic

c) Descriptive

Case Study Approach

It is a research strategy, an empirical inquiry that investigates

a meaning within it real-life context.

Descriptive research

Descriptive research, also known as statistical research,

describes data and characteristics about the population or

phenomenon being studied. Descriptive research answers the

questions who, what, where, when and how.

Although the data description is factual, accurate and

systematic, the research cannot describe what caused a

situation. Thus, descriptive research cannot be used to create

a causal relationship, where one variable affects another. In

other words, descriptive research can be said to have a low

requirement for internal validity.
http://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Statistics


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The description is used for frequencies, averages and other

statistical calculations. Often the best approach, prior to

writing descriptive research, is to conduct a survey

investigation. Qualitative research often has the aim of

description and researchers may follow-up with examinations

of why the observations exist and what the implications of the

findings are.

In short descriptive research deals with everything that can

be counted and studied. But there are always restrictions to

that. Your research must have an impact to the lives of the

people around you. For example, finding the most frequent

disease that affects the children of a town. The reader of the

research will know what to do to prevent that disease thus,

more people will live a healthy life

It represents the conceptual structure with which research

would conducted. The function of research design is to

provide for the collection of relevant evidence with minimal

expenditure of effort, time and money.

Research purpose may be grouped into 4 categories:

Exploration/exploratory research study Description/descriptive research study

Diagnosis/diagnostic research
http://en.wikipedia.org/wiki/Frequency_(disambiguation)http://en.wikipedia.org/wiki/Averagehttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Averagehttp://en.wikipedia.org/wiki/Frequency_(disambiguation)


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Theresearchdesignusedinthisprojectbytheresearcheristhe

descriptive research design.

Descriptive researchdesign:

Determining therelationship between two are more

variables.

Itis well structured.

Itis moreeconomical, wecan gather more information.

Problems can be found after the questionnaire preparation.

Itneedsless time.

3.2 Methods Of Data Collection.

In social research, different types of methods are

incorporated for the purpose of collecting data. The

researcher while selecting the methods should take into

account not only the suitability of the methods but also the

adequate knowledge about that method

Data Collection

Primary Data & Secondary Data were collected for the study

and then analysis was made to reach a conclusion

Primary Data

Primary Data was collected from representative of the

organisation.

Secondary Data

Secondary Data on the organization was collected from

various secondary sources like records, files and official

documents & website of the organization.


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The data collected was classified for presentation.

3.3 Tools And Techniques Used.

Procedure

As it include both primary & secondary research, all the data

is selected after rigorous analysis of articles from

newspapers, magazines and internet & employees.

All the research collected is done by professional analyst

across the world and by the representatives of the

organisation is compiled in this project to understand the

financial and business impact of merger and acquisition more

effectively.

o Pie-Chart Analysis

o Bar-Diagram Analysis

o Swot Analyse


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CHAPTER 4

4.1 Data analysis

4.2 Data interpretation


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4.1 Data Analysis

DATA FOR THE YEAR 2009-10 & 2008-09

Particulars of goods manufactured:

2009-10 2008-09

a) Installed capacity

Sponge iron (M.T)

2,50,000 2,50,000

Steel billet (M.T)1,00,000 1,00,000

Power (M.W)

24* 12

( *12 M.W power plant commenced power generation

from 28.10.2009)

b) Production :

Sponge iron (M.T)

129,385 105,284Steel Billet (M.T) 19,408

25,332

Power (KWH)

77,902,731 49,552,719

Turnover:

2009-10 2008-09


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Quantity(MT) Value (Rs/lacs)Quantity Value

Sponge Iron (M.T) 99,379 14,134.53

75,353 14,174.78

Steel Billet (M.T) 19,616 4,015.88 25,197

6,727.05

Power ( KWH) 25,043,584 811.60_ _

--------------- ------------

18,962.01 20,901.83------

--------- ------------

Company is using its own sponge iron as raw materials in theBillet unit along with scrap. The quantity consumed internallyis not shown in the turnover.


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SWOT ANALYSIS(OSIL)

STRENGTH

The company is an existing profit making oneand

ISO 9001:2000 and makingannual cash

generation.

Promoters are resourceful. The promoters

shallbring in sufficient funds out of

theircontribution before their

availingdisbursement. The company has

alreadystarted investing in the project

Saving in transportation, handling,administrative

overheads, marketing and collection expenses

Asias 1stsponge iron technology.

Best human resources are available.

Raw materials like Sponge Iron, Ingots etc.

areavailable from associate company and

ownplant respectively.

Available infrastructure facilities like land,power,

telephone, water, road, etc.

National award holder of Small

WEAKNESS

Lack of availability of raw materials.

Fluctuating selling price of sponge iron and

metallic scrap

Increase in overhead cost because of

decrease in production.

OPPORTUNITIES

Diversification into structural steel, power plant,

DRI plant etc.

Per capita consumption of the steel in India yet

still very low and governmental efforts on

infrastructure development is expected to

generate demand which wil be eventually lead to

setting up to integrated steel plant in India.

Near future cost of steel will be increased in India.

THREATS

A few rolling mills at Padampur(Keonjhar),

and many more similar companies shall

provide competition.

Iron ore mining and coal block is not

available to the company.

Price of sponge iron is sensitive to demand

supply position.

Rise in the cost of iron ore and coal

combined with steel has squeezed the

margin.


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The major competitors of Osil are

Tata sponge iron & steel ltd.

Shree metalics

Pattnaiks minerals

Crackers india pvt ltd

Kusum power ltd.

JISL Mesco

List of the company in which directorship is held (excluding

in foreign Companies, private limited companies and section

25 company)

Kalinga Steels (India) Ltd.

Neelachal Ispat Nigam Ltd.

Bamra Iron & Steel Co. (India) Ltd.

Bamra Sponge Iron & Steel Ltd.

Torsteel Ltd.

East Coast Steel Ltd.


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4.2 Data Interpretation

(1) Raw material consumed

In OSIL 46.3% iron ore, 42.4% coal (sponge production),

4.94%coal (power production), 1.56% limestone & dolomite,

4.38%sponge iron(internal consumption) and 0.42% other raw

materials are being consumed by the company in the year

2009-10. While consuming all these raw-material total costs

incurred are Rs. 13,221.61(in lacks)

Raw material consumed

iron ore

coal(sponge production)

coal(power production)

limestone & dolomite

sponge iron (internal

consumption)

others


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(2) Particulars of goods manufactured(production).

From the above bar-diagram,we came to know that OSIL dealsin manufacturing 3 type of different raw material i.e., sponge

iron, steel billet &power. Among all these power are

manufactured in large qty and company is using its own

sponge iron as raw material in the Billet unit along with scrap.

The total quantities of goods consumed are78,051,524. But

power are consumed in more quantities i.e., 77,902,731

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

sponge ironsteel billet

power

production

production


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(3)Particulars of goods manufactured (installed capacity)

0

10

20

30

40

50

60

70

80

90

100

sponge iron steel billet power

installed capacity

production


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(4)HOW MANY DAYS AFTER ORDER BOOKING DO YOU

GET THE DELIVERY?

According to the above figures 52% of respondents said that

they are getting their ordered products after 1 month and 17%

of respondents in 20 days. So it suggests that delivery system

is good.

11%

9%

17%

52%

11%

10 days 15 days 20 days 30 days more days

No. Ofdays

Respondents %

10days 6 1115 days 5 920 days 9 1730 days 28 52

moredays

6 11

54 100


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(5)HOW DO YOU RATE AVAILABILITY OF PRODUCTS

&PACK SIZE AS PER YOUR REQUIREMENT?

respondents %very happy 15 28%satisfactory 30 56%

unsatisfactory 6 11%Poor 3 5%

54 100

From Above Figure it is clear that 56% and 5% of the

respondents said that the available of the products is

satisfactory and poor respectively. It suggests that most of

the respondents are getting the products what they ordered

as per their requirement.

very muchmay be yes

may be no

never


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(6)HOW HAPPY ARE YOU WITH THE COMPLAINT

RESOLUTION?

respondent %very happy 17 31%Satisfactory 25 46%unsatisfactory 9 17%Poor 3 6%

54 100

From the above figure, 17 % and 31% of the respondent ratedunsatisfactory and poor complaint resolution. So theconclusion is that most of the respondents are unhappy withthe complaint resolution.

31%

46%

17%

6%

very happy satisfactory unsatisfactory poor


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(7)ARE YOU WILLING TO INCREASE BUSINESS WITHORISSA SPONGE IRON & STEEL LMTD.FROM YOUROUTLET?

From the above figure, all most 92% of the respondents saidthat they are willing to increase business with OSIL from theiroutlet.

very much

may be yes

may be no

never

respondent %very

much 3 6%may be

yes 45 92%may be no 5 0%

never 1 2%

54 100


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CHAPTER 5

Conclusion

5.1 Findings

5.2 Suggestions

5.3 Conclusion


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5.1 Findings

1) The company is an existing profit making one but the

service level of OSIL is not up to the mark.

2) The delivery system is good, because 52% of respondents

said that they are getting their order within 1 month.

3) The retailers are getting products that are ordered but that

are not up to the mark as 56% of respondents said that

availability of the products are satisfactory but not good as

per the requirement.

4) The retailers are not very happy with the complaint

procedure as 17% & 31% of the respondent rated

unsatisfactory and poor. But still 46% & 31% of the retailers

are happy & satisfy with the complaint procedure.

5) All most 92% of the respondents said that they are willingto increase business with OSIL from their outlet.

9) The process of setting claim on expired/damaged productsis very poor. 96% of the respondents rated poor claimsettlement procedure.

10) The time taken to settle claim is very poor. Faulty claimsettlement policy almost all(98%) retailers told that OSIL takesmore than 3 weeks of time to settle claim on expired/damagedstocks.


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11) OSIL deals in manufacturing 3 type of different raw

material i.e., sponge iron, steel billet & power. Among all

these power are manufactured in large qty and company is

using its own sponge iron as raw material in the Billet unit

along with scrap. The total quantities of goods consumed are

78,051,524. But power are consumed in more quantities i.e.,

77,902,731.

5.2 SuggestionsThe company sells its products on cash basis mostly whereas

themajorprocurements of raw materials are on 30 days credit

basis. Thenecessary steps have been taken by the company

to reduce the inventoryholding period. The intend for

procurement must be done in such a way so that items

should beavailable in minimum stock at right time. The items

available should be accessible to all through computers. All

the concerned departments can access the software oninventory of raw material and spares. So all care should be

taken to reduce unnecessary inventory holding and resultant

consequential loss to the company.

I know that it is a profit making organization still it has to

focus on retailers satisfaction.

The major areas to be focused are to rectify faulty claim

policy i.e. there must be a good team who can take a

good care of these problems. Organization is not

focusing on these issues and not only its loyal

customers are decreasing but also its perception about

the organization changing towards negative.


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As we know that for a product to be successful two

things must be there. They are availability and quality ofthe product. The availability of he products are

satisfactory. Ifquality is also not there then your

competitor will have the advantage. The nearby

competitors of OSIL are Tata sponge iron & steel ltd.,

Shree metalics &JISL which has goodquality &

availability coverage. And they all are strong competitor

of OSIL. So it needs focus more on the quality of the

product.


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5.3 Conclusion

To conclude, we can say that Unit OSIL has continued to take

on the competition, in spite of slowdown in the overall

performance.As profit making is the only objective of the

business, the factor that plays a major part is the process of

profit making is satisfaction. As theory of satisfaction says

that if the actual performance is equal to expected

performance then the customer repurchases. If the actual

performance is less than expected performance than the

customer shifts brand. If the actual performance is greater

than expected performance than the customer becomes loyal

customer.

By implementing my above recommendations if the

company gets benefits than my objective of the project is

achieved.


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References

Sites used for references:o Osil website,www.osil.co.in

o www.orissasponge.com

o www.google.com

o Website ,www.esnips.com

Journal

o Annual report 2009-2010

o Marketing Management and Principles BOOKS

o I .M Pandey,2005,Financial Management, New

Delhi, VikasPublication.

o L.S. Porwal ,2001, Accounting Theory and

Introduction
http://www.osil.co.in/http://www.osil.co.in/http://www.osil.co.in/http://www.osil.co.in/


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Osil Marketing(Distrbution Sys)

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