26836522 Inplant Training Report at KAMDHENU (1)

8/3/2019 26836522 Inplant Training Report at KAMDHENU (1)

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CHAPTER-1

INDUSTRY PROFILE

Steel Industry in IndiaSteel, alloy of iron, carbon, and small proportions of other elements. Iron contains

impurities in the form of silicon, phosphorus, sulfur, and manganese; steelmaking

involves the removal of these impurities, known as slag, and the addition of desirable

alloying elements.

The history of iron and steel industry in India is nearly 4000 year old. The iron pillars at

the outskirts of Delhi prove that Indians were familiar with iron and steel even during the

Vedic age. But the father of the modern steel industry Sir Jarmshedji Tata setup the Tata

Iron and steel company (TISCO) in1907.The first steel ingots were rolled in TISCO in

1911.This was followed by the establishment of the Mysore iron and steel works in 1936,

later renamed as Visveswaraya iron and steel works. In 1939, India iron and steel

company (IISCO), now a subsidiary of steel authority of steel Authority of India limited

(SAIL) was started, at the time of independence; India possessed a small but viable steel

industry with an annual capacity of 1.3 million tones. In 1951, India produced 1.1 basic

sector-received the full attention of the government and with the foreign assistance andown resources, many new steel plants were set up.

Steel ministry, at present has 12 public sector undertakings (PSUs) including the steel

Authority of India limited (SAIL), National Mineral Development corporation

(NMDC), Kudramukh iron ore company limited (KIOCL),Rastriya ispat nigam limited

(RINL) and Metallurgical and engineering consultants India limited (MECON).

Changes

Unit the 1990s, the iron and steel sector was by and large the exclusive preserve of only

the public sector, the sole exception being TISCO. The new economic policy

announced in 1991 was a significant mile stone which brought out a sea change in India

underwent a sea change with the advent of major steel producers in the private sector

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with the world class technologies and capacities many all India financial institutions

came forward to support the private investment of bout Rs.30,000 crore to create an

additional producer in the world producing 27.82 million tonees of finished steel a year.

The industry represents nearly Rs.9,000 crore of capital and directly provides

employment to over 0.5 million people. The worlds largest producer of steel is China

(107mt) followed by Japan (104mt.) and USA (97mt.)

Production and process growth

The health of the iron and steel industry is linked with the economic condition of the

nation. The general slow down of the economy and some other factors like dumping from

the CIS and south East Asian countries in the last two year; have adversely affected the

Indian steel industry. However, with the expected growth rate of the economy, led by

large-scale investments in infrastructure and housing sectors, the iron and steel sector has

shown growth, the production of finished steel has gone up by 12 per cent during 1999-

2000 compared to 1998-99 while that of pig iron increased by 5 per cent and sponge iron

by 2 per cent.

Steel was first made by cementation, a process of heating bars of iron with charcoal in a

closed furnace so that the surface of the iron acquired high carbon content. The crucible

method, originally developed to remove the slag from cementation steel, melts iron and

other substances together in a fire-clay and graphite crucible. The famous blades of

Damascus and of Toledo, Spain, were made by the cementation and crucible techniques.

The, open-hearth process and they are more widely used in modern steelmaking. The

open-hearth uses a type of furnace called a regenerative furnace; instead of a firebox at

one end and a flue at the other, it has devices at each end for the intake and outflow of

both fuel and air. The air is preheated by a system of current reversals that causes very

high temperatures. This process, developed in 1866 by Sir William Siemens, uses iron

ore and pig iron. In the basic oxygen process, or Linz-Donawitz process, developed in the

1950s, the design of the furnace is changed, and oxygen added to the air intake permits

more rapid refining of the charge (material in the furnace). The electric-arc furnace is

another modern development; it provides a means of making large quantities of high-

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grade steel, with the advantages of positive temperature control, freedom from

contamination of the product by the fuel, and simultaneous deoxidation and

desulphurization actions.

Steel is shaped for commercial use in rolling mills, where successive passages of the red-

hot ingot between variously shaped rollers give it the desired form. Pittsburgh, one of the

world's great steel centers, built its first rolling mill in 1811; Bessemer steel rails were

rolled in Chicago as early as 1865.

Types and Uses

Steel is often classified by its carbon content: high-carbon steel is serviceable for dies and

cutting tools because of its great hardness and brittleness; low- or medium-carbon steel is

used for sheeting and structural forms because of its amenability to welding and tooling.

Alloy steels, now most widely used, contain one or more other elements to give them

specific qualities. Aluminum steel is smooth and has a high tensile strength. Chromium

steel finds wide use in automobile and airplane parts on account of its hardness, strength,

and elasticity, as does the chromium-vanadium variety. Nickel steel is the most widely

used of the alloys; it is nonmagnetic and has the tensile properties of high-carbon steel

without the brittleness. Nickel-chromium steel possesses a shock resistant quality that

makes it suitable for armor plate. Wolfram (tungsten), molybdenum, and high-manganese

steel are other alloys. Stainless steel, which was developed in England, has a high tensile

strength and resists abrasion and corrosion because of its high chromium content.

Exports

The export performance of the Indian steel industry was very good during 1999-2000

Exports of finished steel increased by almost 51 per cent to 2.6 million tones whileexports of pig iron increased to 2.9 million tones. International prices have started

firming up, and this would ensure the continued presence of Indian steel in the global

markets. Exports are also expected to take care of the increased supply of some finished

steel products especially from the new producers in the country. Domestic steel prices

have also firmed up in line with the international markets. This is expected to improve

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the bottom line of the major steel producers in the country. In the first quarter of the

2000-01, the steel sector has kept up its tempo of production and export of the last

quarter of 1999-2000.

Per Capita Consumption

Indias present per capita consumption of crude steel is only 24 kg. Which is very low

compared to the developed and developing countries -422 kg. In USA, 417 kg. In

Germany, 109 kg. In Russia and 87 kg. In China our consumption is less than 1/5th of

the world average i.e. 121 kg. Government of India has taken a number of steps to

boost up the per capita consumption of steel in the country.

Ministrys Initiatives

Due to slow down in steel industry in the world, many steel companies in India

incurred losses after 1997-98.The giant PSU,SAIL made a loss of Rs. 1574 crore. The

government recently has approved a financial and business restructuring package for

SAIL involving a massive waiver of Rs.5073 crore from steel Development Fund and

Rs381 crore from the government of India. The other measures in the package include

provision of government guarantee for Rs.3000 crore to be raised by SAIL for its VRS

scheme and to meet its repayment obligations on past loans. SAIL has been asked in

the package to initiate process of divestment in some non-core assets protecting jobs of

its existing employees. With the government initiative, the mining lea for the

Kudramukh Iron ore project has been renewed for a year and steps are being taken to

get 20 year lease. The government also approved a second capital restructuring package

for RINL in May 1998 converting Rs. 133.47 crore in preferential capital. The

company has also prepared a turn- around plan to get out of its financial difficulties.

The government has been making all out efforts to help the domestic steel industry to

overcome their problems. To boost the demand and consumption of steel, an institution

for steel Development and growth (INSDAG) has been set up involving the leading

steel producers in the country. The development commissioner for Iron and steel had

launched a national campaign for increasing the demand for steel in the non

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traditional sectors, particularly in the construction, rural and agro- based industrial

sectors. Other areas include reduction in power and railway tariffs, reduction in input

costs, strengthening of anti-dumping mechanism, setting up a steel exporters forum and

an empower committee for research and development.

Developments in the Steel Era:

Mild steel plain bars for concrete reinforcement with low yield strength of 250 N/mm2

ruled the construction industry in India till 1960s. All attempts to increase its yield

strength by the conventional method of increasing the carbon content in the steel were

unsuccessful as high carbon reduced the ductility; bend ability and weld ability of the

bars. Introduction of TOR steel in 1970s increased the yield strength dramatically to

415N/mm2. On account of cold twisting, TOR steel had dramatically increased yield

strength and ribbing provided increased bond strength that earmarked the entry of high

strength that earmarked the entry of high strength rebar in the Indian market. With

continuous technology development and constant research, a new type of high adhesion

reinforcing concrete bars have been developed that are manufactured by a superior

weldability, bendability, ductility and high strength.

Steel Industry Looks AheadIndia has a long heritage of iron and steel making. The journey started in ancient times

and through the ages this evolved and matured into a vibrant and modern industry at par

with the best in the world. The iron and steel industry in India started nearly 100 years

ago in Jamshedpur. The Tata iron and steel company (TISCO), started under the aegis

of the pioneering Indian entrepreneur Sir Jamshedji Tata had been the icon of the

nationalistic pride during the colonial period.

The steel sector was one of the primary vehicles of economic development in

independent India. India is endowed with essential raw materials such as iron ore and

coal. The industry has widespread forward and backward linkages with the rest of the

economy. The founding fathers of Indias five year plans treated this as a priority sector

and the industry rose to commanding heights of the economy through large-scale

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capacity creation in the public sector. Since then it has passed through various phases of

changing domestic and external policy environment. The industry as a whole has

responded to the emerging compulsions of the changing times. It has survived well with

its impressive array of achievements.

In the initial years of economic planning the state stepped in as a regulator and a guide

to reconcile the interests of the producers and consumers of this vital economic input. It

also protected the industry from the vagaries of the international market. The change

came in the last decade of the 20th century with the liberalization of the Indian iron and

steel industry. The environment of globalization and competitive market orientation

combined well the formidable legacy of a rich experience in the art and craft of steel

making acquired over four decades of controlled growth. The industry responded

magnificently to the opportunities provided by the new policy regime. The private

sector led the resurgence from the front.

The decade following the deregulation of the Indian steel sector saw the largest

additions to capacity. The new entrepreneurs also showed extreme pragmatism and

foresight in the selection of technology. As a result, the Indian steel industry today can

boast of some of the latest in the state-of the art technologies in use globally. The post-

deregulation Indian iron and steel industry adopted modern technologies and varied

product categories. In these years, the industry both in the public and the private sectors

saw impressive gains in efficiency of resource use and productivity. The most

remarkable achievement of this decade has been a rapid integration of the Indian steel

industry with the global market. The quantum jump in the marketing opportunities for

the Indian producers and India has emerged as a net exporter of steel. Production for

export has become an integral part of the profit-maximizing and loss-minimizing

business calculations of the Indian corporate. The producers can now source their

inputs, both physical and financial, from the least cost source beyond the boundaries of

the national economy.

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The performance of the Indian steel industry during the last decade, though spectacular,

has not been altogether smooth. The euphoric developments in the first few

deregulations were cut short when deceleration set in from the autumn of 1997. The

external global environment worsened progressively under pressure from a series of

financial meltdowns in various parts of the world while our domestic economy also

stagnated. The domestic market also dwindled on the back of slow growth in

construction and other forms of capital formation/ investment. Most worrying was the

threat posed by narrow national interests which misused the WTO. Non-tariff barriers

imposed on the Indian exporters of steel bear ample witness to this predilection. There

has been some respite in the last few months with some firming up of domestic and

international prices. Prices have risen as a result of improved demand conditions at

home and abroad and also because of some rationalization of capacities across the

globe, though on a limited scale.

The industry now looks ahead with a new resolve and determination. Deregulation

endows the producers with the freedom to take their own business decisions, but at the

same time it devolves a great deal of responsibility. These include the responsibility to

maintain quality standards to remain cost and price efficient and above all, to meet the

consumers demand as best as possible. Globalization has its opportunities and dangers.

Reaping the benefits of a globalize market calls for utmost vigilance from all the stake

holders the producers, the consumers and the state. The industry must be able to

capitalize on the opportunities and mitigate the dangers of synchronized global

downturns. This must be done in association with the consumers and the state

machinery.

At the present juncture, one can say that the industry has successful made the transition

from a controlled to market-driven economic environment the future of this industry is

grounded in its past and its present. Now there are signs of revival both in the domestic

and international steel market. Steel prices and demand have gone up as a result of

increased spending on construction and consumer durables both at home and in south

East Asia, Japan, the USA and some parts of the Euro zone. There has been some cut

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back on capacity world- wide and this has helped in restoring the supply-demand

balance to some extent.

The Indian producers have been alert enough to detect cases of violation of their trading

rights within and outside their national boundaries. The industry helped by the official

machinery has moved the available international bodies to seek redressed, it is also

constantly striving to better its performance in every sector. As a result the Indian steel

industry has grown not only in competence but also in confidence. It looks ahead with a

resolve to carry the journey which started 100 years ago towards a pinnacle of greater

glory and success.

Future of Steel Industry

As today there is a rapid increase in the iron and steel industry is expecting to grow by 60

million tones by 2012.

Present status of steel industry i.e. in 2006 is

World - 110000 million tone

India - 38 million tone

China - 375 million tone

Major companies in the steel industry are going for expansion.

Table 1.1: International production scenario of iron and steel industry

Year Expected million

2006

38

2012

60

2020

120

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CHAPTER-2

COMPANY PROFILE

2.01. History of the company

Kamdhenu Ispat ltd. is setting new benchmarks in construction industry and is ready to

explore the new horizons with strong commitment to contribute to the nation building.

The Kamdhenu Group Derives inspiration from the legendary provider Kamdhenu of

Hindu mythology. The Group has grown considerably from a simple set-up half a century

ago to a well- established group of companies now, involved in diverse fields including

high quality steel bars.

Kamdhenu Ispat ltd. Is one of the largest manufacturers of the international quality

reinforced steel bars, using automatic German technology, in India. With a decade long

experience in the construction business the company is a strict adherent to NO-

COMPROMISE ON QUALITY.

An ISO- 9001: 2000 certified company by ABN quality Evaluation system USA, KIL

manufactures reinforced steel bars (TMT & HSD) which have become synonymous for

strength and durability and are used in the construction of multistoried buildings, dams,

flyovers and power plants.

With its strategic policy of expanding its production base through tie- ups and take over,

KIL has under its aegis a total of 20 manufacturing units with the main production unit

situated at Bhiwadi ( Rajasthan) and the rest 19 franchisee units spread across the nation.

These franchisee units are located in Jammu & Kashmir, Himachal Pradesh, Punjab,

Uttaranchal, Uttar Pradesh, Meghalaya, Assam, Jharkhand, Bihar, West Bengal, Orissa,

Andhra Pradesh, Karnataka, Tamil Nadu, Goa, Maharashtra and Gujarat. The products

thus produced are being marketed by a well- coordinated pool of distributors, dealers and

stockyards apread across the nation.

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Kamdhenu Ispat Ltd. has an efficient team of engineers, Scientists, technicians and

dedicated staff in various departments who work under the valuable guidance of

Mr. Satish Agarwal and Chairman and managing director, Mr. Pradeep Agarwal, Mr.

Sunil Agarwal and Mr. Saurav Agarwal, whole time directors for the company.

Kamdhenu Ispat Ltd. has taken the initiative to exploit the vast opportunity in the cement,

stainless steel water pipes, and Plaster of the Paris (POP) markets. With more than 10

years of experience the company is setting up new benchmark in reinforcement bars

markets.

2.02.Group Profile

The Kamdhenu derives inspiration from the legendary Kamdhenu in Hindu mythology,

who used to fulfill all aspirations of the people. The Company has grown considerably

from a small industrial set-up half a century ago to one of the popular names in steel

industry, involved in diverse fields including high quality steel bars.

Kamdhenu Ispat Limited, a flagship company of Kamdhenu Group is the Indian

reinforcement bars manufacturing company to receive the prestigious ISO-9001:2000 by

ABN Quality Evaluation system, USA. Kamdhenu has emerged as the largest rebar

manufacturing group with 20 modern technology plants, located at: 2 at Rajasthan, 2 at

Punjab, 2 at Uttar Pradesh, 2 at Goa, 1 at Madhya Pradesh, 1 at West Bengal, 1 at

Himachal Pradesh, 1 at Gujarat, 1 at J&K, 1 at Bihar, 1 at Jharkhand, 1 at New Delhi, 1 at

Assam, 1 at Chennai and 1 at TamilNadu.

Kamdhenu Ispat Limited consists of 20 Associate units manufacturing Kamdhenu

National Brand KIL Brand T.M.T/HSD Bars in different parts of the country under

licensing use agreement to fulfill the requirement in all parts of the country.

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The products conform to almost all major International Standards and find wide usage in

the construction of multistoried buildings, dams, bridges, flyovers and power plants as a

basic reinforcement material. 'No Compromise On quality Stand' has also helped the

group to earn the confidence and loyalty of its consumers. To ensure regular availability

of Kamdhenu reinforcement bars, the company has established a network of1750 dealers

and distributors in the various states of India.

The Group is expanding its enterprise at a remarkable growth rate. Backed by high

visionary directors, the group is setting new benchmarks and marching forward with

determined steps and focused target

2.03. Vision, Mission and Quality Policy

Vision- 2010

Kamdhenu aims at decentralization of the production base by strategic tie-up/ takeover

of unbranded manufacturing units all over the country and convert the same into

Kamdhenu Brand through technological up-gradation, implementation of Quality

Management System and effective distribution through wide spread sale depot network.

Efforts would also be made to establish overseas presence across the globe by the year

2010.

Kamdhenu Ispat Ltd Plans include diversification of its business to the production of

Cement, Stainless steel Pipes and tubes and Plaster of Paris, so as to provide diversified

and quality products to the customers under the single brand name.

Back home, the company is brooding over increasing public participation in its

management via public, which is the backbone of the entity.

Simultaneously efforts would be made to create consumer awareness for quality

construction steel and adopt the policy of Best Quality Best Price.

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Quality Control Measures:-

Online Optical Pyrometer

Computerized control of TMT production line

Motorized actuator valve

Continuous study of microscopic structure

Tests of Kamdhenu Tempcore TMT Fe-415, Fe-500 & Fe-550 grade bars at Govt. of

Indias Ministry of steels National Institute of Secondary Steel Technology, Punjabrevealed that these bars are very higher strain & corrosion resistance, lesser crack width

in concrete compared to CTD bars.

12% saving in axially loaded columns, 8% in universal bending of columns and 3 to 7%

in doubly reinforced beam is expected, if this bar is used.

Latest R & D

Kamdhenu applies Micro Structure Analysis, the second Indian company to do so after

Tata Steel. The process helps in determining better quality monitoring of the different

layers of the TMT bars at the micro level, producing strong & flexible products.

2.04. Product Profile

Kamdhenu Ispat Limited is on diversification mode. With an objective to become a

complete infrastructural solution provider, the company has widened its product portfolio

and thus besides producing reinforced steel bars the company has ventured in other

infrastructural segments as:

Kamdhenu Cement

Kamdhenu SS pipes and fittings

Kamdhenu POP

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1. HSD Bars

High Strength Deformed Bars (HSD) have high strength and stress proof, and are

produced by high speed rolling and precision cold twisting.

Features of HSD Bars:-

Higher fatigue strength.

100% weld ability.

Satisfactory malleability.

Suitable for both compression and tension reinforcement.

Minimum weight and maximum strength, thus economical.

2. TMT Galvanized Bars

In order to enhance the corrosion resistance of TMT bars, Kamdhenu conducted

extensive R&D for the galvanization of these bars. The company has the wherewithal of

the commercial production of Gal bars.

Features of TMT Galvanized Bars:-

Superior resistance to atmospheric & marine corrosion.

Enhanced strength combined with high ductility.

Good weldability and no strength loss at welded joints.

High thermal resistance.

Easy to work due to its better ductility and malleability.

Saving in steel

3. TMT Bars

Kamdhenu Tempcore TMT bars are thermo-mechanically-treated through leading

world technology for high yield strength. Tempcore bar is an advanced high strength-

reinforcing bar made by a unique mill heat treatment process developed by Centre de

Recherch Metallurgiques (CRM) in Belgium in the early seventies to produce a

combination of physical properties tailor made for the building and construction

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Industries. Its inventors CRM, independent European authorities, have subjected

Tempcore bar to comprehensive and extensive testing programmers.

The important feature of TMT bars is enormous cost saving in construction resulting

from drastic reduction in quality. This is possible practically in all types of RC

constructions.

The process involves rapid quenching of hot bars through a series of water jets after they

come out of the last rolling mill stand. The bars are cooled, allowing the core and surface

temperatures to equalize. The bar core cools down slowly to turn into a ferrlite-pearlite

aggregate. Strength of the bars is carefully controlled by optimizing the water pressure

for their pearlitic core and tough surface of tempered marten site, thereby providing an

optimum combination of high strength, ductility and toughness.

This product is used widely in general purpose concrete reinforcement structures, bridges

and flyovers, dams, thermal and hydel power plants, industrial structures, high rise

buildings, under group platforms in metro railway and rapid transport system.

Features of TMT Bars:-

Enhanced strength combined with high ductility.

Thermal and earthquake resistance.

Good weld ability and no loss of strength at welded joints.

Higher thermal resistance.

Easy working at site owing to better ductility and malleability.

Saving in steel.

Superior Bend ability compared to conventional HSD Bar.

4. SS Bars (Future Product)

Steel reinforcement bar in RCC are subject to corrosion, specially in coastal and high

humidity areas. Stainless steel bars offer a solution to corrosion in reinforcement concrete

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structures which help achieve a design life of 80 to 120 years. R&D for the manufacture

of Stainless Steel bars has yielded the desired technical parameters.

Features of SS Bars :-

Good high and low temperature tensile/yield strengths to match or exceed carbon

steel.

Inherently good corrosion resistance, especially from chlorides in marine

environment.

No cathodic protection needed.

High thermal resistance.

Easy to work with owing to better ductility and malleability.

Saving in steel

Kamdhenu Cement

4 Units at Varanasi, Himachal Pradesh and Ludhiana are manufacturing

Kamdhenu Brand Cement 43 grade OPC & 53 Grade PPC.

Suitable for RCC construction activities.

2.05. Area of operation

Group Plants

Kamdhenu Ispat Group is well-equipped with 20 modern technology Plants for

manufacturing TMT/H

1. Ashiana Ispat limited, Bhiwadi (Rajasthan)

2. Bansiwala Iron & Steel Rolling Mills, Ajmer (Rajasthan)

3. Supreme Alloys (P) Ltd., Ghaziabad (U.P.)

4. Radhey Ispat (P) Ltd., Kanpur (U.P.)

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5. Nalagarh Steel rolling Mills (P) Ltd., Nalagarh (H.P.)

6. Aar Kay Industries, Mandi Gobindgarh (Punjab)

7. Manwani Industries Ltd., Indore (M.P.)

8. Him alloys (P) limited. , New Delhi

9. Neelkanth Concast (P) Ltd., Gujarat

10. Jhelum Industries, Jammu (J & K)

11. Kundil Ispat limited, Goa

12. Kundil Rolling Mills (P) Ltd., Goa

13. Durga pur Steels Limited, Durga pur (West Bengal)

14. Dadi Ji Steels Ltd., Patna (Bihar)

15. Hanuman Alloys (P) Ltd., Bokaro City (Jharkhand)

16. ARS Metals Pvt. Ltd., Chennai

17. Fortune Metal (P) limited, Mandi Gobindgarh (Punjab)

18. Meghalaya Steel (P) Limited, Guwahati (Assam)

19. Kali Metal (P) limited, Hosur (Tamil Nadu)

20. Binju Metal & Alloys Industries (P) Limited, Hydrabad

21. Trinayani cement (Pvt.) Ltd. (Cement)

22. M/s.Pangli Cement company (Pvt.)(Cement)

23. M/s A.S Cement Industries (H.P)

24. M/s Asain Cement (H.P)25. Kamdhenu Industries Limited (S.S Pipe & Tubes), New Delhi

26. Devendra Singh (PoP), New Delhi

All The Associate plants are based on upgraded automatic German technology.

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(With a rolling time of just 18 seconds).

The range of products forHSD bars includes Cold Twisted Deformed (CTD) bars,

Thermo-mechanically-treated (TMT) Bars, Galvanized thermo-mechanically-treated

(TMT Gal.) bars and Stainless Steel (SS) bars.

All the plants are well equipped with fully automated hot rolling and precision twisting

techniques. Latest TMCP/ technology based on extensive R&D by engineers and

technical staff has been adopted for the manufacture of TMT bars.

Highlights of Group Plants:

Technology Upgraded High Speed German Technology for HSD Bars. Technology

CRM, Belgium for TMT Bars.

Range Of Product CTD & Tmt Bars (8mm To 32mm).

Advance Labs with Spectrometer for Quality Control.

List of Distributors

1750 Sales Depot & Distributors in the following states:-

Haryana

Rajasthan

Punjab

Himachal Pradesh

Madhya Pradesh

Maharastra

West Bengal

Jammu & Kashmir

Gujarat

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Jharkhand

Assam, Nagaland & Arunachal Pradesh, Meghalay, Tripura, Mizoram, Manipur

Bihar

Tamil Nadu

Karnataka

Goa

Kerala

Pondichery

2.06. Competitors

Tata steel

Vizag steel

Steel authority of LTD

Vougcal Steel

Shakathi TMT

Kudramukh iron ore company limited

Rastriya Ispat nigam Limited

Metallurgical and engineering consultants India Limited( MECON)

2.07. Achievements and Awards

The prosperity and high customer satisfaction endorse Kamdhenu's market success. To

give our clients long-term guarantee, it becomes our duty to ensure our customer's

success in a highly competitive environment, by supplying correct material with the exact

specifications, and at the right time. Kamdhenu has received numerous awards and

recognitions from the Government of India and other bodies.

Achievements

Largest Rebar manufacturing group.

International quality

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Awards

Udyog Ratan Award

Udyog Patra Award

Rajat Jayanti Udyog Jyoti Award

2.08. Work Flow Model (End to End)

Figure 2.1: Production Process

2.09. Future growth and prospectus

ROLLING FINISHEDPRODUCTS

TESTING

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A rise in demand for long products (reinforcement steel) is clearly visible. The

monsoon has been good, GDP forecasts are better, and Indias infrastructure, construction

and housing sectors continue to perform very well. All these bode very well for demand

of long products where we are focused. Traditionally too, demand for long products have

had lesser impact in case of an economic meltdown while the demand surges far more

than other steel products during good economic run and all indications are there that

Indias good economic run will continue for considerable period of time. A noteworthy

feature of rising demand has been than there is a distinct shift towards quality and

branded products and it is where kamdhenu is best positioned to leverages.

2.10. Group Turnover

Financial Year Turnover (in lacks)

1998-1999 3036.76

1999-2000 4001.39

2000-2001 3851.95

2001-2002 4633.94

2002-2003 5315.752003-2004 8358.132004-2005 12629.102005-2006 (Projected) 18600.0

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4633.94

5315.75

8358.1312629.1

18600 3851.95

4001.393036.76

Figure 2.2: Group Turnover

CHAPTER-3

McKINSEYS 7s FRAME WORK

21

Strategy System

Shared Value

Structure

StyleSkills


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Figure: 3.1: McKinseys 7s

The seven S framework first appeared in the Art if Japanese Management by

Richard Pascale and Anthony Athos in 1981.They had been looking at how Japanese

industry has been so successful, at around the same time that Tom Peters and Robert

Waterman were exploring what made a company excellent. The seven S models were

born at a meeting of the four authors in 1978. It went on to appear in In search of

Excellence by Peters and Waterman, and was taken up as a basic tool by the global

management consultancy Mckinsey 7s model

To achieve systematic organizational learning and a higher level of organizational

competence and effectiveness, leaders must transform the culture of how we think, meet,

plan and perform our work. Culture is recreated everyday by the people of Kamdhenu

Ispat Limited because of the beliefs, values, morals and concepts of culture reside in their

minds. During times of transformation, understanding culture is critical. Strategic and

operational leaders must consciously shape culture to the changing to the changing

context about them.

The 7s model is a tool for understanding and planning comprehensive culture change. It

is a means by which the employees of Kamdhenu Ispat Limited plan and implement

cultural development to a learning organization. The 7s model is an anthropological and

systematic way to understand culture. It shows dynamically that corporate success

requires the development of both the hard 5s (strategy, structure, and system) and the

soft 5s (style of leadership, skills, staff and shared values)

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Staff


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Mc Kinseys 7s help leaders in at least four ways as:

Mental model to understand culture

Guide for change management strategy

Tool for design initiatives holistically

Reminder of hard and soft assets to be integrated aligned and measured.

The lines in the graphic below indicate that all parts of an organizational culture are

interconnected. It is not possible to independently change one part of an organization

without affecting the other parts. Therefore effective systematic management focuses

on the interactions of the parts.

The seven factors are

Strategy: Sets of actions that you start with and must maintain

Structure: How people and tasks/ work are organized

System: All the processes and information flows that link the organization together

Skill: Dominate attributes or capabilities that exist in the organization

Style: How managers behave

Staff: How you develop managers (current and future)?

Shared Values: Set of values and aspirations that goes beyond the conventional formal

statement of corporate objectives.

3.1 Strategy

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Strategy refers to the set of decisions and actions aimed at gaining sustainable

Competitive advantages. Strategy includes vision statements, mission statement,

objectives and goals and major action plans and policies.

A strategy is the determination on the basis long-term goals and objectives and of an

enterprise and the adoption of the course of action and allocation of resources necessary

for carrying out the goals. Kamdhenu Strategies is to increase profitability through re-

allocation of capital towards opportunities offering higher returns.

Every company has their own pricing system and fundamentals.

Every company has their own marketing segments according to their customers.

Every company has their pricing structures, policies and discounts.

Pricing Strategy

Kamdhenu steel pricing is determined jointly by the raw material, purchase department

sales and marketing department.

The pricing Strategy can be explained with various steps, such as:

First the company decides which type of bars has to be supplied in the market that can

also call as definition of the project. The next step is analyzing the required raw materials

for production so there is a need for finding out the changed rate on raw materials in the

market. Next stage is to surveying the price of the competitors. The last stage is analyzing

both the raw material price and the competitors (at least 3 to 4 companies are taken) in to

consideration and the price is finalized. Price strategy is done every day as price differ

from day to day.

Kamdhenu steel open their price day to day, the price of TMT depends on the raw

materials price in the market and the competitors price. The price of the product is been

opened in the morning and the information is passed through SMS. The decision of the

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price is been taken by the own branches as the rate differs from one state to other.

Decision is taken by the operational head.

3.2Structure

Structure refers to the hierarchal flow within the organization. It tells about the

authoritative power in the organization. The design of organizational structure is a critical

task of the top management of an organization. It is the skeleton of the whole

organizational office. Organizational structure refers to the relatively more durable

organizational arrangement and relationships.

25

Broad of directors

Companysecretary

Chief Manager

Finance &

account

Whole- time

Director

Whole- time

Director

Whole- time

Director

Technical

Executive

Secretarial

& Legal

Executive

General

Manager

MarketingSteels,

cements

Expansionof

franchisee

Vice president

General Manager

Quality

controlsystem

Production

General Manager

Personal

General Manager

Chairman & Managing

Director

Asst. Manager Senior manager

Senior

Manger

Senior

Executive


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Figure 3.2: Overall Organizational structure

Sub structure

Finance department

Figure 3.3: Finance Department

The various functions performed in the finance department are financial reporting and

accounting, controlling the financing of the technological park of India, commercial

functions, and legal compliances.

Human Resources Department

26

Assistant General

Manager

Marketing Manager

Regional Manager

Field staffs

Chief manger Finance

ManagerCommercial

ManagerSecretarial

ManagerAccounting

Manager FinancialAnalysis & Reporting

Executives &

Associates

Executives &

Associates

Executives &

Associates

Executives &

Associates

Project manager Senior

Executive

Project SuperiorExecutive

Associates

Senior Engineer

Engineer

Workers

Executive

Associates


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Figure 3.4: Human Resources Department

The various function performed by the human resources department are recruitment,

selection, placement, training & development, performance appraisal, employee welfare

program, internal mobility and salary administration.

Plant and Technical department

27

Head HR

Learning andDevelopment

Manager

StaffingManager

HR Operating

Manager

Executive

Associates

Executive

Associates

Executive

Associates


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Figure 3.5: Plant and Technical Department

Marketing department

Plant Head

Director plant

Vice President

General Manager

Foremen

Supervisors

Fetors

Technical

Director

General Manger

Program Manger

Project lead

Engineer

28

Marketing

Director

Chief marketing

manager


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.

Figure 3.6: Marketing Department

3.3 System

A system is a defined processes, or set of processes, that links and orders activities to

enable work to be done and goals to be achieved. System refers to all the rules and

regulation, purchase and producers both formal and informal those represent the

organization.

A system is an organized or complex whole, an assembler or combination of things or

parts forming a complex unitary whole.

A system means all the procedures, formal and informal that make the organization go

day-by-day, year-by-year. The organization is an open system as it interacts with the

environment.

Purchase system: - Required thousands of raw material which cannot manufactured by

merit so it gives orders to the trusted vendors.

29

Vice President

General Manager

Assistant GeneralManager

Operational head

Area sales manager


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Accounting system: - The financial systems of the company are prepared on historical

cost conversion and in accordance with generally accepted accounting principles.

Revenue of the company is recognized and expenses are accounted on their annual with

necessary provision for all known liabilities and losses.

Planning system: - The chief executive officer takes the leading role in organizational

planning. This organization planning includes marketing planning, advertising planning,

sales planning and other.

System followed by the Marketing department for booking

Figure3.7: Order executive system

In kamdhenu the order execution take place according to the above diagram in detail to

explain first step is in the open market i.e. the customer enquiry the rates as the rate of the

product differ day to day according to the market situation. The rates are enquired

through the dealers and they are also informed about the quantity required their

customers. The information is past to the distributors so that they can enquire from the

marketing department about the requirements. Later the information is pasted to the

30

Open market

Dealer Network

Distributor

Marketing Department

Booking Department

Dispatch Department


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booking department if the requirement is available the order is been accepted and the

product is sent to the dispatch department after it is dispatched the order is completed.

3.4 Skill

Skills refer to the fact that employees have the skills needed to carry out the

company's strategy. Training and Development - ensuring people know how to do their

jobs and stay up to date with the latest techniques. Company has employees with variety

of skills. The finance department needs accounting standard skills, cost control skills, etc.

Sales department needs personnel with technical skills, marketing department needs sales

skills. Accuracy needs planning and program of borrowing, lending etc.

Required and available at various levels

Conceptual skills:- Chairman, Directors- Entrepreneur should with adequate

organizational and technical skills and experience.

For the president and vice-president optimum experience and knowledge of particular

field, managerial skill, interpersonal skills professional, maximization qualification ie

Graduate or post- graduation.

Managerial skills:- Minimization graduation or post graduation on the relevant areas,

managerial skills, business concept, professional.

Technical skills:- Minimum BE, or PG with particular field knowledge regarding

technical.

3.5 Style

The style here refers to the style of leadership. The behavioral pattern which a leader

adopts to direct the behavior of members in an enterprise for achieving the organization

goals is known as the style of leadership. Different leadership styles may be adopted by

the leaders at different times and in different circumstances. Style may be also stated as

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the employees shared and common way of thinking and behaving, unwritten norms of

behavior and thought such as Leadership Style and Organizational Culture.

Kamdhenu adopts both top down i.e. authoritarian and bottom up i.e. a participative

leadership style, its leadership style is closely associated with team building,

interpersonal interaction and human skills.

In top down style of leadership the one who takes the decision consult their top

management and check the government polices.

In bottom up style of leadership the one who takes the decision consults with the

subordinates before taking the decision. The decision maker encourages initiative from its

subordinates. He also seeks their advice and opinions on matters which affect them and

their job.

The leadership is mostly centralized decision making process and also authority.

Participative is more than authoritarian leaders have a high concern for people and work.

Authoritarian /participation

See from the higher authority from director to the senior manager next to the middlemanager next to the junior manager authorization is given to deliver the job; in the

particular job is been entrusted to the concerned person or manager, in cycle it has to be

done by the concerned person to complete or deliver & report to his or their immediate

charges.

Decision making parameter pertaining to the day to day operation training

In order to make a decision on the price given to the employee, the guidelines and the

method of training is decided by the heads of that particular department or that particular

department and branch, the guideline and the method is not decided by the top

management. The head of the training department will be in a better position to decide

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the guideline of training that the top level management, as he has a clear picture about the

needs and wants of the job.

The top management has adopted such style leadership as it helps in reducing

grievances among the employees; it also seeks to evolve a self regulating and self-

disciplining mechanism. As the middle level and low level are involved in the decision

making process, there is a possibility of better decision making.

In Kamdhenu decision is finally taken by the department manger about the polices of the

training that is when and whom should the training be given. Training strategy depends

on on-the-job and training given is minimum of 45 days. And every 6 months a work

shop is conducted.

3.6 Staff

Staff means that the company has hired able people, trained them well and assigned them

to the right jobs. Selection, training, reward, recognition, retention, motivation and

assignment to appropriate work are all key issues

In Bangalore unit the total number staff members are 250. These employees are

categorized on the basis of Permanent & Contract and the level of management. They are

also classified in different sector i.e. steel and cement. These employees occupy the

various positions created through the process of organization. Each position of the

organization makes specific contribution to achieve organizational objectives.

Marketing department

For over all units there are 100 for steel and 50 for cement

Finance department

50 for steel and 30 for cement

H.R department

75 for steel and 50 for cement

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Technical department

Franchisee units 80 and mother unit 12

On the basis of level of management, they have been categorized on the basis of top,

middle and low level management. The top level consists of about 10% of the total

people employed, who are the top level management. The middle level consists of 30%

of the total people employed, who are the managers or the heads of specific departments.

And the low level consists of the supervisors of a specific group or project. The staff here

lay emphasis on both processes and means. There is high concern for individual

efficiency and also the overall effectiveness of the staff.

3.7 Shared Value

A shard value is an essential characteristics or attribute promoted by the organization to

motivate the behavior of members of the organization. In simple words, shared values are

what engender trust vales are identify by explicitly states as both corporate objectives and

individual value.

Shared value refers to the beliefs, mindsets and assumptions that shape how an

organization behaves. Shared value means that the employees share the same guiding

values. Values are things that you would strive for even if they were demonstrably not

profitable. Values act as an organization's conscience, providing guidance in times of

crisis.

It refers to a set of value and aspirations that goes beyond the conventional formal

statement of corporate objectives. The employees of Merit or at each level of

organizational stricture are conscious about delivering customers value for his money.

According to the observation and literature reviews and interview conducted, the

researchers have observed certain strong key values:

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One of the most visible key values being shared by all the employees is

commitment to quality.

Teamwork is another positive symptom visible throughout the company.

The employees are highly motivated to reach the companys vision and mission.

The company is very much loyal towards its customer and employees. It is very

much visible by the companys efforts to provide the best values to customers and

employees by providing the products to the customers at the lowest possible price

without sacrificing the quality and providing good salaries and allowances to its

employees.

Employees enjoy freedom in their dealing with supervisors and also there is

tremendous amount of co-operation between different levels of employees.

Conclusion

The 7s model is a useful tool analyzing the structure and effectiveness of an

organization. This is a useful framework to analyze the strengths and weakness of a

competitor or to understand and design a comprehensive program of organizational

change within a firm.

Prior to the creation of this model, managers typically analyzed firms using only two

variables: structure and strategy. This was found in adequate for explaining why

organizations are slow to adapt or change. The reason firms are slow to adapt or

change often lies with the other variables: the absence of super-ordinate goals which

bind fame together and failure to recognize importance of staff or investing suitable

training or to have a style that encourages open feedback, suggestions, or opinions

from all employees.

CHAPTER-4

SWOT ANALYSIS

35

Internal Assessment of the Organization


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STRENGTHS & WEAKNESSES - These are internal factor to business.

OPPORTUNITIES & THREATS - These are external factors to the business, but

within the same market (looking at the market in relation to competitors).

The logic behind the SWOT analysis is that by first looking at your business, you

already have a set of strengths which you need to maintain, but by identifying

weaknesses you can address them and move them into strengths. The same applies to

opportunities, in the sense that by identifying threats you can work to reduce them as far

as possible.

In Kamdhenu we can see that the strengths are very high when compared to their

weaknesses. The weaknesses are very few and the company is trying hard to overcome

there weaknesses. The company also has a large number of opportunities which need to

be capitalized effectively and efficiently. On the other hand it also has a number of

threats from the external assessment of the organization.

SWOT analysis on Kamdhenu Ispat Limited

36

External Assessment of the Organization

SWOTAnalysis

Strengths Weaknesses

Opportunities Threats


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Kamdhenu deals with TMT saria. Strengths of Kamdhenu Ispat limited are

T.M.T Saria is a special type of saria manufactured using latest technologies. This

high quality saria is manufactured using most advance technology of 21 st century

called Thermo Mechanical Treatment.

It can be used for all type of construction works ranging like buildings to dams.

It is economical because of its 20% more strength. It is earth quake resistant

because of its high tensile strength and flexibility. It is less affected by rust. It has

more strength to sustain fire.

It has 4% less weight per meter than normal that makes it economical

It does not peel off the skin while working with it.

Goodwill of the company based on the quality as per ISI, policies, networking,

consistency supply.

Consumer- Kamdhenu has wide ranging market wise dedicated consumer on

Kamdhenu brand who are selling, marketing, branding, promoting.

Kamdhenu brand and awareness consistently to achieve. It is a promising brand.

Weaknesses of Kamdhenu Ispat limited are

Consistency of raw material supply- no proper supply of the raw materials which

led to stoppage in the production

Rate fluctuation in the market price

Competitors is the major weakness because any company has to meet the selling

of the competitors

Opportunity available forKamdhenu Ispat limited

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In product manufactures of reinforcement bar for construction there is a wide

demand of this product, having a short supply of market and also scope of

develop new market to reach the Kamdhenu brand quality steel to the consumer

as there is a good demand of good quality steel.

With the wide ranging consumer holding in the market in steel trading company

has formed are diversified market opportunity for other quality like Plaster of

Paris ( POP), cement, stainless steel, sanitary fitting and so many other products

in the fold.

Threats faced by Kamdhenu Ispat limited

Duplicate TMT saria are very much available in the market from local

manufacture who apply water on cheep saria during production to make them

look like TMT saria which affect the brand.

Fluctuation in prices of raw materials.

Rate Fluctuation in the major construction product like cement, bricks affect the

market of the TMT.

No standard product.

CHAPTER-5

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SUMMARY OF LATEST ANNUAL REPORT

Table.5.1: Profit & Loss Account for the Year Ended 31st March, 2006

(Amount in Rs.)

2004-2005 2005-2006

INCOME

Gross Sales

Less: - Excise Duty

Net Sales

Income from Royalty

Other Income

Decrease in Stocks

Total

EXPENDITURE

Cost of Raw Materials

Cost of goods traded

Manufacturing Expenses

Personnel Cost

Administrative & Other Exp

Selling & Distribution Exp

Financial Expenses

Depreciation

Miscellane Exp Written off

Total

1262910373

95696792

1,167,213,581

10,436,744

1,252,839

(437,732)

1,178,465,432

668,084,810

280,253,288

155,782,206

5,593,427

10,560909

18,752,988

5,932,252

6,995,423

111,307

1,152,156,616

1376478640

168452802

1,208,025,838

39,484,291

3,214,327

(6,613,561)

1,244,110,895

813,315,830

155,109,295

152,079,484

5,899,435

15,391,656

47,038,078

6,866,943

7,319,487

944,002

1,203,964,210

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Profit Before Tax

Less: Tax Expense

(a) Current Tax

(b) Deferred Tax

(c) Fringe Benefit Tax

Profit After Tax

(-)Provisions of earlier year

Profit For The Year

Add: Profit b/f from last yr

Less: Bonus Share Issued

Profit Carried to Reserves

& Surplus

Basic Earning per share

8,753,884

436,500

----

26,308,816

9,190,384

17,118,432

(193,635)

17,312,067

24,221,547

15,200,000

26,333,614

3.25

14,352,323

(218,953)

311,485

40,146,685

14,444,855

25,701,830

110,061

25,591,769

26,333,614

---

51,925,383

4.38

Table 5.2: BALANCE SHEET AS AT 31st MARCH,2006

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(Amount in Rs.)

2004-2005 2005-2006

ISources of Funds:

A. Shareholders Funds:

a) Share capital

b) Reserve & Surplus

B. Loan funds:

a) secured loans

b) unsecured loans

C. Deferred Tax liability

TOTAL

II. Application of funds

A. Fixed Assets

Gross block

less: deprecation

Net Block

Capital work in progress

B. Investment

C. Current assets loans&

advances :

a) Inventories

75,476,650

26,333,614

38,899,788

28,060,888

96,779,804

28,865,604

67,914,200

1,180,750

57,562

,770

101,810,264

66,960,676

8,119,734

176,890,674

69,094,950

10,000

153,978,160

65,291,373

28,257,454

22,213,814

104,807,626

34,263,308

70,544,318

601,350

219,269,533

50,471,268

7,900,781

277641582

71,145,668

12,010,000

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b) Sundry Debtors

c) Cash& Bank balance

d) Loans & Advances

less: current liabilities & pro

E. Miscellaneous Expenses

(To the extent not written

off or adjusted)

Total

133,876,231

10,313,639

32,315,905

234,068,545

128,610,577 105,457,968

2,327,756

176,890,674

21,668,608

167,385,018

18,094,696

61,643,839

268,792,161

85,682,438

183,109,723

11,376,191

277,641,582

Ratio Analysis

Ratio analysis is an indicated quotient of two mathematical expressions and as the

relationship between two or more things. Ratio analysis is one of the powerful tools ofthe financial analysis.

One of the techniques of analysis of statement is to calculated ratios. Ratio is the

numerical or arithmetical relationship between two figures. It is expressed when one

figure is divided by another. Ratio analysis stands for the process of determining and

presenting the relationship of items in the financial statements. The ratios provide

information that can be used by the management to that action.

Nature of Ratio Analysis

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Ratio analysis is technique of analysis and interpretation of financial statements. It is the

process of establishing and interpreting various ratios for helping in making certain

decisions. It is only a means of better understanding of financial strengths and weakness

of a firm.

Table 5.3: Financial Ratios of Kamdhenu

Ratio

2004 -05 2005 - 06

1. Current ratio 3.09 4.1

2. Quick Ratio 2.15 3.6

3. Net working capital turnover ratio 8.67 7.7

4. Debt Equity ratio 1.77 1.08

5. Proprietary ratio 0.43 0.55

6. Fixed asset to net worth ratio 0.68 0.32

7. Gross profit ratio 1.47% 2.13%

8. Net profit ratio 2.26% 4.29%

9. Profit before tax to new worth ratio 19.5% 25.6%

10. Profit before tax to equity ratio 34.8% 26%

11. Current liability to net worth ratio 0.28 0.1412. Total asset turnover ratio 6.59 times 4.35 times

13. Fixed asset turnover ratio 16.9 times 16.9 times

14. Sales to net worth ratio 8.6 times 7.7 times

15. Current asset turnover ratio 5.78times 5.83 times

Interpretation

1. Current ratio

The companys current ratio for 2004-05, 2005-06 is 3.09 and 4.1 respectively. The

standard norm is 1:1.33. The current ratio current ratio for 2004-05, 2005-06 is above the

standard norm. Hence we conclude that the company enjoys sufficient liquidity and there

is no shortage of working capital.

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2. Quick ratio

It shows a firms ability to meet current liabilities with its most liquid Assets. The ideal

quick ratio in 1:1 because it is wise to keep the liquid assets at least equal to the liabilities

at all times. The company had a quick ratio of 2.15:1 in the year 2004-05; and has 3.6:1

in the year 2005-06. This is good indication of growing company.

3. Net working capital turnover ratio

There is no standard or ideal working capital turnover ratio. The net working capital

turnover ratio during the year 2004-05 and 2005-06 is 8.67 and 7.7 respectively. A high

working capital turnover ratio indicates the efficiency and a low working capital ratio

indicates inefficiency. The ratios reveal that efficiency of the company has decreased

during the last two years.

4. Debt Equity ratio

The standard ratio for the debt equity ratio is 2:1. If the debt is two times less than the

equity, the logical conclusion is that the financial structure of the concern is sound and so

the stake or risk of the long term creditors is relatively less. The debt equity ratio during

the last two years is decreasing gradually which implies that the financial structure of the

company is sound.

5. Proprietary ratio

There is no standard or ideal proprietary ratio. The proprietary ratio in the year 2004-05

has been 0.43, and in the year 2005-06 it has shown a steady improvement and the

proprietary ratio went up to 0.55.

6. Fixed asset to net worth ratio

The fixed asset to net worth for 2004-05 and 2005-06 is 0.68 and 0.32 respectively.

Generally the purchase of fixed assets should be financed by shareholders equity

including reserves, surpluses and retained earnings.

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7. Gross profit ratio

As the gross profit is found by deducting cost of goods sold from the net sales, higher the

gross better the result. There are no standard norms for gross profit ratio. It is calculated

to know the trading profit made during the year. The gross profit ratio for the year

2004-05, 2005-06 are 1.47%, 2.13% respectively.

8. Net profit ratio

The net profit ratio is calculated to know the actual profit of a concern during the year.

The net profit for 2004-05 and 2005-06 are 2.26% and 4.29% respectively. Usually,

while calculating the net profit the investment or capital of the firm is only in relation to

sales.

9. Profit before tax to new worth ratio

The standard ratio is about 13%. As such, if the actual net profit to net worth ratio is

13% or more, it is an indication of good return on the shareholders fund. The profit

before tax to new worth ratio for the year 2004-05 is 19.5% and 2005-06 25.6%.

10. Profit before tax to equity ratio

There is no standard for net profitto equity ratio. The ratio is a measure of productivity

and profitability of the enterprise form the point of view of equity shareholders. This ratio

was 34.8% in 2004-05 and 26.0% in 2005-06.

11. Current liability to net worth ratio

The standard or ideal proprietary ratio of current liability to net worth ratio is 33% or 1/3,

more than this there is no adequate cover for long term creditors. The current liability to

net worth ratio in the year 2004-05, and 2005-06 is 0.28 and 0.14 respectively. By this we

can come to the conclusion that there is adequate cover for long term creditors.

12. Asset turnover ratio

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There is no standard or ideal for asset turnover ratio. The asset turnover ratio for the year

2004-05 is 6.59 times and 2005-06 is 4.35times. By this we can conclude that the asset

turnover ratio is decreased when compared with 2004-05 and 2005-06.

13. Fixed asset turnover ratio

The standard or ideal of fixed asset turnover ratio is 5 times. The fixed asset turnover

ratio for the year 2004-05 and 2005-06 are 16.9 times and 16.9 times respectively by this

we can conclude that the fixed assed turnover ratio has been constant for past two years.

14. Sales to net worth ratio

There is no standard or ideal for the sales to net worth ratio. The sales to net worth ratio

in the year 2004-05 and 2005-06 is 8.6 times and 7.7times respectively. By this we canconclude that the sales to net worth has decreased in the previous year.

15. Current asset turnover ratio

There is no standard or ideal for current asset turnover ratio. The current asset turnover

ratio for the year 2004-05 and 2005-06 are 5.78 times and 5.83 times respectively. In the

year 2005-06 the current asset turnover ratio is the highest and in the year 2004-05 it is

the lowest. By this we can conclude that the current asset turnover ratio is been increasing

in recent years.

CHAPTER- 6

LEARNING EXPERENCE

Exposure to the company

Doing my InPlant Training Kamdhenu Ispat ltd was an experience of a life time.

Kamdhenu Ispat ltd is one of the manufacturers of the international quality reinforced

steel bars, with a decade long experience in the construction business.

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I learned a lot about the steel industry focusing on TMT bars. Working at this

company was an absolutely great experience. I got the experience of the real work force,

and also learnt the different strategy adopted by them. I gained many new management

skills and also got a chance to learn new things on my own.

Throughout my InPlant training, I learned about the skills required, style of leadership,

the strategies adopted by the company in order to face the tough competition, the order

executive system and much more. It was more of a learning experience for me.

Undergoing the InPlant training in Kamdhenu Ispat ltd helped me in improving skills like

meeting a deadlines, time management, teamwork, and networking with fellow

employees and handling the market conditions. It also helped me to understand the

corporate culture and experience in a better way.

The company gives high value for time, money, facilities, material and human

resources. They also largely focus on participation as member of a team, teaching new

skills, service to customer & clients, exercise leadership and working with diversity. The

company gives importance to responsibility, self esteem, sociability, self management,

integrity and honesty.

Exposure to the various systems and their functions

The various systems to which I got exposed to, were the order Executive system,

training the employees, hiring strategy, policy making, shared value system etc. I learnedthat the company adopts different ways to get their work done. The company not only

believes in improving their unit but also helps the franchisee units. They also believe it is

important to inform the people about how they will use there personal data, and to give

them choices about how those data will be used.

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With regard to the information, the company acquires and evaluates the information,

organizes and maintains information, interprets and communicates information and uses

computers to process information. Thus this states that the company makes the best and

effective use of the information.

The rapid changes in steel and the diversity of applications require a broad educational

background and a lifelong commitment to learning new and specialized information. The

company provides a facility to the employees to work from home, where the employees

can connect to the server of the company from home through a dialup or a broadband

connection and through mobile phones.

The company gives the authority to the marketing manger of each state to decide on the

price of TMT bars according to the market condition the company does not interfere it

just wants the targeted profit.

The company provides a pleasant working environment with good infrastructural

facilities which motivate the employees to work effectively. The company also provides

various welfare measures to the employees in the form of canteen, gym, creche, sports

facility, etc. Kamdhenu provides both on the job and off the job training to the

employees.

Exposure to the corporate culture

Culture is the most basic fundamental determinant of a persons wants and behavior.

Right from the time of birth, a child grows up in a society learning a certain set of values,

perceptions, preferences, behaviour and customs.

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Corporate culture is a broad term used to define the unique personality or character of a

particular company or organization, and includes such elements as core values and

beliefs, corporate ethics, leadership style, dress, code internal communication, reputation

of CEO value of the organization and rules of behaviour. Corporate culture can be

expressed in the company's mission statement and other communications, in the

architectural style or interior dcor of offices, by what people wear to work, by how

people address each other, and in the titles given to various employees.

To start with the Kamdhenu corporate culture the company adopts both top down i.e.

authoritarian and bottom up i.e. a participative leadership style, its leadership style is

closely associated with team building, interpersonal interaction and human skills. The

employees in the company are given a great value. Kamdhenu treats the employees as its

key assets. The company involves the employees in a key factor. The company follows

an open door policy, involves employees in decision making and builds personal rapport

with the employees.

Kamdhenu deeply cared about distributors, dealers, customers and employees. Thecompany has not imposed any kind of dress code to the employees in order to make them

feel free. They also strongly value people and processes that can create useful changes.

The company gives high value for business ethics, personal ethics and professional

ethics, morality and integrity. The company works for 8 hours form 11:00 am to 7:00 pm,

which helps the employees to avoid themselves from getting strained.

Every product that is produced by the Kamdhenu goes through a highly sophistical

quality control procedure. Products must be safe, effective of high quality and should

deliver to our customers on time.

The company believes that quality is an intrinsic part of production and should be

achieved in the following methods.

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A good product design

The best available resources

Welt trained personnel

Good manufacturing practices

In addition to this they have a well documented quality management system in force,

which ensures compliance with quality standards of ISO 9001. They believe that quality

is the key to success. Kamdhenu has been at the forefront of societal contribution.

Understanding the expectations of the industry

The future expectation of the Steel industry is very high as there is a slow growth in

the market. Kamdhenu believes the future of the industry lies in producing the quality

goods simplified and user friendly products. To see to it there is a standard maintained

which does not affect the customer. The company has an expectation that their product

should be the best quality with the minimum price so they have franchisee units all over

the country so that transportation cost and taxes can be reduced.

As Kamdhenu has understood that the market can be captured by providing good

quality goods as it is the base of any construction i.e. buildings, bridge etc. so it is

necessary that the product given to the customers should be ISO based. The Steel

industry has great expectations for the upcoming.

Relating theory to practiceIn the four weeks of training I was able to relate theory to practice. I was able to

understanding the business environment in a better manner. I could feel the difference

between text book and corporate culture. I gained skills and experience that will be

invaluable to my future career throughout my entire life. This InPlant training has been

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an incredibly positive experience that was far more valuable to me than I had expected. I

explored the relationships between theory and practice, including reviews which examine

emergent practices and interpret them in the light of current status of the company.

I was able to relate theory to practice to a large extent, from the point of view of the

structure of the organization, the various forms of skills adopted for training the

employees, the leadership style, the pricing strategy adopted, day to day decision, the

system of order execution by the company, work flow, the skills, the shared value, the

duties and responsibilities of staff and much more.

Theory to Practice was related where the skills of the company were classified on the

basis of Technical and Functional, where different safety measures and welfare measures

were adopted by the company.

Overall I had a great experience while undergoing inplant training in Kamdhenu. The

experiences have gained will stay with me for a lifetime. I think it was very important for

me to be exposed to the workplace. I have gained invaluable international perspectives

that will surely be of great advantage to me in the future.

26836522 Inplant Training Report at KAMDHENU (1)

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