VSL steel limited CHAPTER 1 GENARAL INTRODOCTION Iron and steel are two of the most important metals steel is an alloy of iron and other materials, iron can be classified into three types one is pig iron, cast iron and wrought iron. By various methods including heat treatments and the addition of the elements iron and steel can be made in various degrees of hardness. Iron and steel can be softened or melted so that they can be formed in to required shapes. Without iron and steel the way of life of civilized people would be entirely different I serve everybody in homes public building automobile trains, ship , machinery (which produces almost everything we use in our daily life ) bridges, mine equipment and in a variety of application that may range from pin to plane . the use of iron and steel in so many ways in possible only because there is an abundance of iron in the earth’s crust and because of price low cast production is achieved by efficient operation on a large scale of iron and steel industry. Steel industry is more than a century old, before the economic reforms of the early 1990s the Indian steel industry was a predominantly regulated one with the public sector dominating the industry. Tata steel was the only major private sector company involved the production of steel in Indian. Sail and Tata steel have traditionally the major steel producer of India. In 1992 the liberalization of the economy led to the Institute of Management Studies and Research Page 1
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VSL steel limited
CHAPTER 1
GENARAL INTRODOCTION
Iron and steel are two of the most important metals steel is an alloy of iron and other
materials, iron can be classified into three types one is pig iron, cast iron and wrought iron.
By various methods including heat treatments and the addition of the elements iron and steel
can be made in various degrees of hardness. Iron and steel can be softened or melted so that
they can be formed in to required shapes. Without iron and steel the way of life of civilized
people would be entirely different I serve everybody in homes public building automobile
trains, ship , machinery (which produces almost everything we use in our daily life ) bridges,
mine equipment and in a variety of application that may range from pin to plane . the use of
iron and steel in so many ways in possible only because there is an abundance of iron in the
earth’s crust and because of price low cast production is achieved by efficient operation on a
large scale of iron and steel industry.
Steel industry is more than a century old, before the economic reforms of the early 1990s the
Indian steel industry was a predominantly regulated one with the public sector dominating the
industry. Tata steel was the only major private sector company involved the production of
steel in Indian. Sail and Tata steel have traditionally the major steel producer of India. In
1992 the liberalization of the economy led to the opening up of various steel industries. This
led to the increase in the number of producers, increased investments in the steel industry and
increased production capacity. Since 1990, more than Rs 19,000 cores (U$$ 4470.58,
million) have been invested in the steel industry of India. The new policy has already borne
fruit. The finished steel production in India has gone up from mere 1.1 million tonnes in 1951
to 23.37 million tonnes in 1997-98 despite overall economic slow-down in the country. It has
been estimated that the demand for finished steel in 2001-02 would touch 38.68 million
tonnes and the projected availability of 38.01 tonnes is almost adequate to meet the domestic
demand along with export of six million tonnes. Similarly, by 2006-07, the final year of the
tenth plan, the demand for finished steel would be around 48.80 million tonnes, providing
adequate surplus for meeting the projected export potential of nine million tonnes. However,
there is hardly any scope for complacence over the fact that India continues to be the
10th largest steel producer in the world. In 1997 India’s per capita steel consumption was only
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22 kg which was much below the world average of about 126 kgs. Even if the domestic
demand grows up from 34.5 million tonnes to 100 million tonnes in 2025 the industry is
unlikely to catch up with the production in the developed countries
OBJECTIVES OF THE STUDY
To understand the background and history of the VSL steels company.
To study the organization structure.
To study the various function of the organization through McKinley’s 7s frame work
To have a practical experience of the functioning of the all deportment of the
organization
. To provide the SWOT analysis of the company
SCOPE OF THE STUDY
This study is limited to V.S.L. steels limited paramenahalli in hiriyur, for the period of one
month from 1-8-2011 to 31-8- 2011 the study focused on the various deportment of the
organization.
The study is confined to gain some knowledge about the organization and the functions of
deportments in V S L steels ltd paramenahalli
DATA COLLECTIONFor the purpose of the study data has been collected in the form of Primary data and
Secondary data.
Primary data is first hand data and the data is collected through personal interview
with departmental heads and employees of each department. And through classes
conducted by the specialists of the VSL steels ltd.
Secondary data has been collected through the
Internet,
company annual reports,
various Broacher’s,
Books,
Magazines and Web sites.
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LIMITATIONS OF THE STUDY
time constraint period is one month
the study is based on within organization only
the study is mainly based on secondary data
CHAPTER SCHEME
Chapter -1
This chapter deals with general introduction, introduction, and objective of the study, scope
of the study, data collection, and limitation of the study.
Chapter – 2
This chapter deals with introduction, industry profile, history, and milestone, strength of the
company, strategies, location, vision, mission, objectives, and future orientation.
Chapter -3
This chapter deals with introduction, company profile.
Chapter-4
This chapter deals with Introduction, m7s study
Chapter -5
This chapter consist SWOT analysis. And findings suggestion and conclusion
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CHAPTER 2
INDUSTRY PROFILE
INTRODUCTION
The V S Lad group is one of the oldest and largest suppliers of iron ore from the
South Indian State of Karnataka. While the group has been in this business for more than 5
decades, they have diversified the mining business into manufacture of pig iron and various
other activities. The V S Lad group has also successfully ventured into Information
Technology, Real Estate, the Entertainment industry and Aviation. Their businesses include
several IT firms, an Air Cargo company, and Real Estate development firms, Movie and TV
production companies, Online Entertainment portals and Clubs.
The V S Lad Group aspires to be at the forefront of the booming Indian economy both
economically and socially. Under the passionate and capable leadership of Mr. Santhosh Lad,
a team of professionals aspire to make V S Lad Group a Leader Steel is an important
indicator to analyze the economic development of a country. The steel industry is highly
scientific and technology oriented. Technological advancement is very important for the
overall health of the steel industry,
India's Steel Industry is more than a century old. Before the economic reforms of the early
1990s the Indian steel industry was a predominantly regulated one with the public sector
dominating the industry. India’s steel industry went through a rough phase between 1997 and
2001 when the overall global steel was facing a downturn and recovered after 2002. The
major factors that led to the revival of the steel industry in India after 2002 were the rise in
global demand for steel and the domestic economic growth in India. India has now emerged
as the eighth largest producer of steel in the world with a production capacity of 35MT.
almost all varieties of steel is now produced in India. India has also emerged as a net exporter
of steel which shows that Indian steel is being increasingly accepted in the global market. The
growth of the steel industry in India is also dependant, to a large extent, on the level of
consumption of steel in the domestic market. Steel consumption is significant in housing and
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infrastructure. In recent years the surge in housing industry of India has led to increase in the
domestic demand for steel. More than 3500 different varieties of steel are available in the
steel industry of India. These can however be classified into two broad categories
INDUSTRY PROFILE
Steel industry reforms –particularly in 1991 1nd 1992have lead to strong sustainable
growth in Indian steel industry. Since its independence, India has experienced steady growth
in the steel industry and pushed for its robust development in 1991. A substantial number of
economic reforms were introduced by the Indian government. These reforms boosted the
development process of a number of industry the steel industry in India in particular which
has subsequently developed quite rapidly India continually posts phenomenal growth record
in steel production. In 1991, India produced 14.33 million tones of finished carbon steel and
1.59 million tones of pig iron. Furthermore, the steel production capacity of the country has
increased rapidly since 1991 –in 2010 India produced nearly 47.575 million tones of pig
iron .In 1992 the total consumption of finished steel was 14.84 million tones. In 2010 the
total amount of domestic steel consumption was 45.926 million tones. With the increased
demand in the national market, a huge part of the international market is also served by this
industry. Today India is in seventh position among all the crude steel producing countries.
India is largest producer of steel in the world. India steel industry has growth by leap and
bounds, especially in recent time with India firms buying steel companies overseas. The
scope for steel industry is the huge and industry estimates indicate that the industry will to
grow reasonably in the coming years with huge demands for stainless steel in the construction
of new airports and metro rail project.
HISTORY
The first notable attempt to revive steel industry in India was made in 1874 when the
Bengal Iron Works (BIW) came into being at Kulti, near Asansol in West Bengal. However,
forty-four years before that, in 1830 to be precise, a foreigner, named Joshua Marshall Heath,
had set up a small plant at Porto Novo on Madras Coast. Heath produced in his plant pig iron
at the rate of forty tones a week. His method of iron-making needed approximately four tones
of charcoal to produce one tone of low quality pig iron which proved to be too expensive for
Heath to carry on in the face of stiff competition from the British steel industry. The BIW
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made considerable improvement in the process of iron and steel making. It used coke as the
fuel instead of charcoal. But the plant fell sick as the source of funds dried up. It was taken
over by the Bengal Government and was rechristened as Barakar Iron Works. In 1889 the
Bengal Iron and Steel Company acquired the plant and by the turn of the century the Kulti
plant became a success story. It produced 40,000 tonnes of pig iron in 1900 and continued to
produce the metal until it was taken over by Indian Iron and Steel Company (IISCO) in 1936.
For modern India’s iron and steel industry August 27, 1907 was a red-letter day when the
Tata Iron and Steel Company (TISCO) was formed as a Swadeshi venture to produce
120,000 tons of pig iron. The TISCO plant at Sakchi (renamed Jamshedpur) in Bihar, started
pig iron production in December 1908 and rolled out its first steel the following year. TISCO
had expanded its production capacity to one million tonnes ingot by the time the country
achieved freedom. The Tata’s, as Gandhiji said, represented the "spirit of adventure" and
Jamsetji Tata, in the words of Jawaharlal Nehru," laid the foundation of heavy industries in
India". The British rulers disfavored this and other attempts to start indigenous industry. It
was chiefly with the help of American experts that the Tata’s started their industry. Its
childhood was precarious but the war of 1914-18 gave it a fillip. Again it languished and was
in danger of passing into the hands of British debenture holders. But nationalist pressure
saved it. In 1918, soon after the war, Indian Iron and Steel Company (IISCO) were formed.
The then Mysore government also decided to start an iron works at Bhadravati. While IISCO
started producing pig iron at Burnpur in 1922, the Mysore Iron and Steel Works took about
18 years to start its plant. Meanwhile, the Bengal Iron Works went into liquidation and
merged with IISCO. The Steel Corporation of Bengal (SCOB) formed in 1937, started
making steel in its Asansol plant. Later in 1953, SCOB merged with IISCO.
Prime Minister Nehru firmly believed that "no country can be politically and economically
independent unless it is highly industrialized and has developed its resources to the utmost".
Nehru’s ideas about India’s development were broadly incorporated in free India’s first
Industrial Policy Resolution adopted by the Constituent Assembly in 1948. The resolution
officially accepted the principle of mixed economy. Industries were divided into four
categories. In the first category were strategic industries which were made the monopoly of
the Government. In the second category were six industries which included, among others,
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coal, iron and steel. It was decided that new units would be started exclusively by the
government in the public sector without disturbing the existing ones in the private sector.
Eighteen industries, including heavy castings and forgings of iron and steel, Ferro alloys and
tool steel were covered by the third category and the rest of the industries by the fourth. In
sum, the government committed itself to the development of basic steel industry while the
private sector was to benefit through the establishment of downstream units which would use
pig iron, billets, blooms and flat products to be made by the public sector steel plants. In
keeping with the spirit of the resolution the Government decided to start a chain of steel
plants all over the country in the public sector. The first such plant was set up at Rourkela in
Orissa. The second came up at Bhili in Madhya Pradesh. It was followed by a third at
Durgapur in West Bengal. Each of these three plants had an initial production capacity of one
million tone ingot. Durgapur was followed by a steel plant at Bokaro in Bihar. The onward
march of Indian steel did not stop at Bokaro. The fifth public sector steel plant was set up at
Visakhapatnam in Andhra Pradesh. As a matter of fact, the country was dotted with steel and
steel-related plants in public and private sectors, like Alloy Steel Plant, Salem Steel Plant,
Kalinga Iron Works, Malavika Steel Ltd., Jindal Vijaynagar Steel Ltd., to name only a few.
About the same time TISCO launched its two-million-tone expansion programmer.
The Government’s Industrial Policy had undergone changes once in 1956 and then in 1991.
The resolution modified in 1956 brought changes in the category pattern and listed more
industries for the public sector than did the earlier one, though it was not harsher towards the
private enterprise. In the new industrial policy announced in 1991 iron and steel industry,
among others, was included in the list of industries reserved for the public sector and
exempted from the provision of compulsory licensing. With effect from May 24, 1992 iron
and steel industry was included in the list of ‘high priority’ industry for automatic approval
for foreign equity up to 51% (now 74%). Export-import regime for iron and steel has also
undergone major liberalization. The freight equalization scheme was withdrawn removing
freight disadvantage to States located near steel plants. The new policy has already borne
fruit. The finished steel production in India has gone up from mere 1.1 million tons in 1951 to
23.37 million tonnes in 1997-98 despite overall economic slow-down in the country.
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It has been estimated that the demand for finished steel in 2001-02 would touch 38.68 million
tonnes and the projected availability of 38.01 tonnes is almost adequate to meet the domestic
demand along with export of six million tonnes. Similarly, by 2006-07, the final year of the
tenth plan, the demand for finished steel would be around 48.80 million tonnes, providing
adequate surplus for meeting the projected export potential of nine million tonnes. However,
there is hardly any scope for complacence over the fact that India continues to be the
10th largest steel producer in the world. In 1997 India’s per capita steel consumption was only
22 kg which was much below the world average of about 126 kgs. Even if the domestic
demand grows up from 34.5 million tonnes to 100 million tonnes in 2025 the industry is
unlikely to catch up with the production in the developed countries.
The redeeming feature is the cost competitiveness of Indian steel in the global market.
According to World Steel Dynamics, the total cost of steel production in the USA is $510 per
metric tone while in Japan it is $550, in Germany $557, in Canada $493 and in India it is
$497. This is because of high material cost due to high excise and import duties. Reduction of
cost on these accounts will make Indian steel more competitive in the world market. Indian
steel can reasonably expect a good market in the neighboring countries now that the Asian
economy is looking up. In conclusion, it can be said with a certain measure of confidence that
India’s iron and steel industry which had a glorious past and has an uncertain present may
now look forward to a bright future.
The production of iron by humans began probably sometime after 2000 BC in south-west or
south-central Asia, perhaps in the Caucasus region. Thus began the Iron Age, when iron
replaced bronze in implements and weapons. This shift occurred because iron, when alloyed
with a bit of carbon, is harder, more durable, and holds a sharper edge than bronze. For over
three thousand years, until replaced by steel after 1870 BC, iron formed the material basis of
human civilization in Europe, Asia, and Africa.
Steel was discovered by the Chinese under the reign of Han dynasty in 202 BC till 220 AD.
Prior to steel, iron was a very popular metal and it was used all over the globe. Even the time
period of around 2 to 3 thousand years before Christ is termed as Iron Age as iron was vastly
used in that period in each and every part of life. But, with the change in time and
technology, people were able to find an even stronger and harder material than iron that was
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steel. Using iron had some disadvantages but this alloy of iron and carbon fulfilled all that
iron couldn’t do. The Chinese people invented steel as it was harder than iron and it could
serve better if it is used in making weapons. One legend says that the sword of the first Han
emperor was made of steel only. From China, the process of making steel from iron spread to
its south and reached India. High quality steel was being produced in southern India in as
early as 300 BC. Most of the steel then was exported from Asia only. Around 9th century
AD, the smiths in the Middle East developed techniques to produce sharp and flexible steel
blades. In the 17th century, smiths in Europe came to know about a new process of
cementation to produce steel. Also, other new and improved technologies were gradually
developed and steel soon became the key factor on which most of the economies of the world
started depending.
The history of steel-making in India can be traced back to 400 BC when the Greek emperors
used to recruit Indian archers for their army who used arrows tipped with steel. Many more
evidences are there of Indians’ perfect knowledge of steel-making long before the advent of
Christ. Archaeological finds in Mesopotamia and Egypt testify to the fact that use of iron and
steel was known to mankind for more than six thousand years and that some of the best
products were made in India. Among the widely-known relics is the Iron Pillar near Quota
Miner in Delhi. The pillar, built between 350 and 380 AD, did not rust so far an engineering
marvel that baffles the scientists even today. Yet another engineering feat is the famous Sun
Temple at Konark in Orissa, built around 1200 AD, where steel structural were used for the
first time in the world. These were the halcyon days when India flourished in all directions
and when its prosperity was a matter of envy for the foreigners. But as ill luck would have it,
India’s prosperity gave way to poverty after the advent of the foreign rule. India’s indigenous
industry languished because of a deliberate policy of the colonial rulers to make the country
only a supplier of raw materials. Steel Role plays a vital role in the development of any
modern economy. The per capita consumption of steel is generally accepted as a yardstick to
measure the level of socio-economic development and living standards of the people. As
such, no developing country can afford to ignore the steel industry.
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INDUSTRY STRATEGY
Government targets to increase the production capacity from 56 million tons annually to 124
MT in the first phase which will come to an end by 2011- 2012 currently with a production of
56 million tones Indian accounts for over 7% of the total steel produce globally , while it
account about 5% of global steel consumption . The steel sector in Indian grew by 5.3 in
May 2009 globally India is the only country to post positive overall growth in the production
of crude steel at 1.01% for the period of January – march in 2009
EXPORT
About 50% of the steel produced in India’s is export of steel during April-December 2009
was 64.4 MT in December 2008. In February 2010 steel export increased by 17% to 12.6 MT
from 10.8 MT in the same month last year more than 50% of steel from India is exported to
china. The government’s decision to reduce export duty on iron ore lumps from 15% to 5%
has given a major boost to the export of steel
STRENGTH
There are many strong point of the industry that makes it one of the leading names in the
global steel industry. The rate of labor wages in India is among once of the lowest in the
world thereby making large scale production feasible. The boom witnessed in the automobile
industry has ensured that the demand for steel is increasing gradually and will continue to do
so in the near future. There is huge manpower in India which is another reason why steel
production I India is high and the industry is doing pretty well both national and international
INVESTMENT
Numerous steel companies some major projects in the pipeline to invest in India steel
industry. Steel companies have earmarked more than 100 million USD for the setting up of
sponge iron unites in koppal and Bellary in Karnataka. As per investment commission of
India more than 30 billion USD are in the pipeline for investment over the next five year,
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THE GLOBAL STEEL INDUSTRY
The current global steel industry is in its best position in comparing to last decades. The price
has been rising continuously. The demand expectations for steel products are rapidly growing
for coming years. The shares of steel industries are also in a high pace. The steel industry is
enjoying its 6th consecutive years of growth in supply and demand. And there is many more
merger and acquisitions which overall buoyed the industry and showed some good results.
The subprime crisis has lead to the recession in economy of different countries, which may
lead to have a negative effect on whole steel industry in coming years. However steel
production and consumption will be supported by continuous economic growth.
STEEL PRODUCTION IN INDIA
India is one of the few countries where the steel industry is poised for rapid growth.
India’s share in world production of crude steel increased from 1.5% in 1981 to around 3.5 %
in 2004. While plant closures and privatization are rare in India, the private sector is
considered to be the engine of growth in the steel industry and technological changes and
modernization are taking place in both the public and the private sector integrated steel plants
in India. Steel production of India accounted for 14.33 million tons in 1990-91, which
gradually increased to 36.12 million tonnes in 2003-04, as shown in Table III. The Indian
steel industry got a giant importance in the recent past when the Tata Steel purchased the
Corus steel. Today India plays a significant role in the production of steel in the world. The
Indian steel industry is growing at 8.74 % of CAGR. Steel demand continued to remain
upbeat in 2008-2009 with consumption of finished steel growing by a decent 6.8% during
April-may 2008. During a same period import surged by a healthy 10 % to 0.7 million tons
While export reported a 33% decline to 0.6 million tones. While imports and consumption of
finished steel reported a healthy rise, production of the steel continued to rise at a tepid pace.
During April 2008 finished steel output rose by a modest 3.8 %. Further in may it increased
by 5.2%. Aggregate production growth during April-may stood at 5.1 % In view of no major
capacities coming on stream we estimate finished steel production to touch 60 million tons in
2008-2009. On the basis for last year of 52.7 million tones, the steel production growth for
2008-2009 comes to around 14 %. However the joint plant committee has been revising its
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annual figures upwards for the last 2-3 years. In the event of an upward revision in the figures
of 2007-2008, the actual growth in steel production in 2008-2009 would turn out to be less as
compared to our estimates.
MILESTONE
1918 : Construction work started for setting up a Wood Distillation plant of 200
tonnes per day and one Charcoal based Blast Furnace of 60 tonnes per day
1923 : Mining of Iron Ore started in Kemmannugundi Iron Ore Mines, a
captive mine of the Company. (Production of Pig Iron started in Charcoal
Blast Furnace). General Foundry commissioned.
1927 : Pipe Foundry commissioned.
1936 : steel making through Open Hearth ‘a’ furnace started Light Selection
Mill for rolling structural steels started.
1938 : Cement plant Commissioned
1942 : Steel Foundry commissioned. Two 1500 KVA Ferro Alloy Plants
started at Mysore.
1943 : Open Hearth ‘B’ Furnace started.
1948 : Plate Sleeper Foundry commissioned.
1950 : Ferro Alloy Plant shifted to Bhadravati from Mysore. 9000 KVA Ferro
Silicon furnace started.
1952 : First 100 tonnes per day capacity Electric Pig Iron Furnace started.
1955 : Second 100 tone per day capacity Electric Pig Iron Furnace started.
1958 : Cast Iron Spun Pipe Plant started.
1962 : Two 12000 KVA Ferro Silicon Furnace started. Works became a
limited company on April 1, 1962. Sintering Plant started at Tanigeblyle.
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1964 : Bollming and Heavy Section Mill commissioned. Plate sleeper
Foundry started.
1965 : LD Plant started. First 20 tonnes Electric Arc Furnace commissioned.
Oxygen and LC plant started.
1966 : 6 tones EAF started at Steel Foundry. Induction Furnace started at
General Foundry. New refractory Department started.
I have gone through in plant training of four weeks from 1st Aug 2011 30 th august 2011 helped me in gaining ledge about the actual working of the organization. Got great support from the employee of all levels. The in plant training at VSL was a value based experience in this factory the administration dept gives more importance to safety. It is well equipped and advance technology is used in production process. Studied and learnt many things carried in the organization. There are very strict rules followed in the HR department, and attendance was taken daily to check the regularity and we used to say from morning 10 to evening 5 daily and to visit different departments daily according to their schedule. There was good reaction and co operation by the superiors and subordinates of VSL they helped me in collecting the information regarding the different department and production process. Got the clear picture about the organizational work carried on and how the work is allotted and how it is carried out and the duties and responsibilities of the employees in the organization.
29th July2011 The experience met to the general manager of the organization and got permission to do the project work. The experience was studying about the company history types of authority studied the experience state to study about the departmental wise firstly done the information about the HRD department play an impartment role in any of the organization. It is visited with the responsibility of activities such as determining the man power requirements, recruitment, selection, training and development, promotion wages and compensation of all the employees VSL. The auditing of the entire department is carried on by the HRD on a continual basis for the smooth running of the organization.
The experience was production department in this department got the clear information that how they converting raw material to finished goods with practical experience. The experience was raw materials department and in this department clear information was collect. Visited to finance department as well all know that finance is lifeblood of every organization, personally had a look at the finance department. Came to know the importance of finance department, and came to know the different tools they use to have control over the liquidity position of the company
The experience was safety department and this department importance of safety and health of its employees and hard helmet. Skullcap, Safety glasses (plane and welding) Welding mask, Hand mask, VSL this type of facility is given to the employee. Now came to the marketing department in the department manager very experience parson to marketing their production some time holds their selling while price is decrees and increase. Security department in department is given protection to organization it has divisional work force like security officers, security inspector head guards and watch man for this purpose company having safe. Infrastructure facilities like canteen, hospital, education, library facility, transportation facilities, and information had been collected.