C H A P T E R - I I I VISAKHAPATNAM STEEL PLANT PROFILE AND SOCIO-ECONOMIC PROFILE OF RESPONDENTS i. Development of Steel Industry in India ii. Opportunity for Growth in Steel Industry iii. Organisation Profile iv. Vision, Mission and Objectives v. VSP Policies vi. Human Resource Development vii. Marketing Network viii. Corporate Social Responsibility ix. Achievements and Awards x. Statistical Information xi. Socio-Economic Profile of Respondents
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C H A P T E R - I I I
VISAKHAPATNAM STEEL PLANT PROFILE AND
SOCIO-ECONOMIC PROFILE OF RESPONDENTS
i. Development of Steel Industry in India
ii. Opportunity for Growth in Steel Industry
iii. Organisation Profile
iv. Vision, Mission and Objectives
v. VSP Policies
vi. Human Resource Development
vii. Marketing Network
viii. Corporate Social Responsibility
ix. Achievements and Awards
x. Statistical Information
xi. Socio-Economic Profile of Respondents
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CHAPTER-III
VISAKHAPATNAM STEEL PLANT PROFILE AND
SOCIO-ECONOMIC PROFILE OF RESPONDENTS
This chapter is divided into three sections. Section - I deals with the Industry
profile, Section - II covers the entire profile of the Organization and Section - III reveals
about the Socio-economic profile of respondents.
Section – I
i. Development of Steel Industry in India:
The Indian Steel Industry began with the setting up of Tata Iron and Steel Co. in
1911 by Late Sri J.R.D.Tata at JAMSHEDPUR in JHARKAND State. With abundant
raw material available within the country, the industry has grown significantly since
independence. Prompted by the socialistic pattern of development, the license for large
scale integrated steel units was received for the Public Sector. As a result, TISCO’s Plant
was the only integrated plant outside government control.
Besides, the Government had price distributive controls over mild-steel
manufacturers. Imports were subjected to quantitative and tariff based restrictions and
foreign investments were also restricted. The additions to capacity were not uniform.
During the first 3-5 year plans, there was a significant addition to capacity over 14
million tonnes of crude steel.
In the seventies, a host of mini-steel plants (most ranging within 10000 to 50000
tones per annum capacity) came up with Electric Arc Furnace (EAF) technology,
producing steel from scrap. These were setup in the private sector to meet shortages,
which arose due to stagnation in investment and capacity creation.
In the eighties, steel units using electric induction technologies were introduced.
These units on scrap and were best suited to carter to remote areas. These units,
however, were not essentially cost-effective compared to large integrated plants. Once
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the price control on steel was removed in 1992, these units could not withstand
completion in wake of rising electricity cost and increase in the price of steel-scrap. At
the time of price de-control, mine-steel units based on EAF and EIF accounted for a
combined capacity of 7 million tonnes per annum.
The steel industry development strategy took a paradigm shift in 1991 after four
decades of elaborately controlled development. No doubt, of all the industries steel
received maximum support from the Government, but due to lack of competitiveness, the
industry became inefficient. The departure from import substitution had a far-reaching
impact.
ii. Opportunity for Growth in Steel Industry:
The demand of finished steel in India is estimated to go up to 32 MT by the turn of
the century and up to 62 MT in the coming decade. The supply is estimated to be 39 MT
during the corresponding period, thus leaving a wide gap between the supply and
demand.
The gap between the demand and supply of steel is only one side of the steel
scenario. Behind the cold statistics lies an opportunity, which the existing as well as new
steel manufacturers must tap. This is possible by promoting steel consumption in the
country. The per capital consumption of steel in India is a mere 24Kg.
With such a large demand of steel in sight, massive investment plans are underway
to develop and add capacity to the Indian steel industry. The existing steel industries are
also going through a transition in order to competitive in the changed business
environment.
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Section - II
iii. Organization Profile
Steel occupies the foremost place amongst the materials in use today and pervades
all walks of life. All the key discoveries of the human genius- for instance, steam engine,
railway, means of communication and connection, automobile, aero-space and
computers, are in one way or other, fastened together with steel and with its sagacious
and multitude of useful properties making it indispensable for furthering and achieving
continual growth of the economy - be it construction, manufacturing, infrastructure or
consumables. The level of steel consumption has long been regarded as an index of
industrialization an economic maturity attained by a country. Keeping in view the
importance of steel, the following integrated steel plants with foreign collaborations were
set up in the Public Sector in the post-independence era:
SI .No Steel plant Collaborated By
1 Durgapur Steel Plant Britain
2 Bhilai steel Plant Erstwhile USSR
3 Bokaro Steel Plant Erstwhile USSR
4 Rurkela Steel Plant Germany
To meet the growing domestic needs of steel, govt. of India decided to set up an
integrated steel plant at Visakhapatnam. An agreement was signed with erstwhile USSR
in 1979 for cooperation in setting up 3.4 M T integrated steel plant at Visakhapatnam.
The foundation stone for plant was laid by the then Prime Minister, Indira Gandhi on
20th January 1971.
The project was estimated to cost Rs 8,397.28 Cr. Based on prices as on 4th
quarter of 1981. However, on implementation of construction and commissioning of the
whole plant in 1992, the cost escalated to around Rs 8,500 Cr. Unlike other integrated
steel plants in India, Visakhapatnam Steel Plant (VSP) is one of the most modern steel
plants in the country. The plant was dedicated to the nation on 1st
August 1992 by the
then Prime Minister, P V Narasimha Rao.
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New technology, large scale computerization and automation etc., are
incorporated in the Plant. To operate the Plant at international levels and attain high
labour productivity, the organizational manpower has been rationalized. The Plant has a
capacity of producing 3.0 m T of liquid steel and 2.656 m T of saleable steel.
RINL commissioned in August 1992 as a first shore based steel plant in the
country. Rashtriya Ispat Nigam Limited (RINL) having its Plant at Visakhapatnam
known as Visakhapatnam Steel Plant is known for its excellence in performance and has
been making profits consistently for the last decade in spite of not being bestowed with
captive mines for iron ore and coal mines. Productivity, efficiency and yields have been
above par and with all this, attained the status of Navratna. RINL has been a leader in the
country on several technical parameters especially Fuel rate, Specific Energy
Consumption and Specific Water Consumption, right from the year of its integrated
operation.
RINL-VSP established its presence both in the domestic and international markets
with its superior quality of products. VSP has been awarded all the three international
standards certificates, namely, ISO 9001:2000, ISO 14001:1996 and OHSAS
18001:1999. RINL-VSP is the first Indian Steel Plant to get the ‘Capability Maturity
Model Integrated – Level 3’ Certification issued by ‘Software Engineering Institute of
Carnegie Mellon University’, USA for implementation of IT systems in VSP. RINL-
VSP is the first Public Sector Enterprise (PSE) and first in Steel sector in India to get BS
EN 16001 Certification for Energy Management system, a recent feather in its cap.
RINL has been conferred with “Navratna” status in November, 2010 which is a
testimony to its consistent performance over the last few years with its dedicated and
committed work force. RINL-VSP has an excellent layout capable of expanding up to 20
Mtpa. RINL-VSP is today on the growth with commissioning of 6.3 Mtpa expansion
facilities progressively from 2011-12. RINL is heading fast towards commissioning of
major units individually and integration of all units for final production from hot metal to
billet in 2nd half of 2011-12. RINL has already launched next phase of expansion to
11/12 Mtpa and is all set to enter into the product segments CRGO and CRNO grades.
The ongoing initiative of adoption of waste heat recovery from sinter machines is the first
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of its kind in Indian steel industry. Even in the existing plant, 40 MW is being generated
with effective utilization of waste heat gases and top pressure recovery and will scale up
to a level of 90 MW with 6.3 Mt expansion.
On production front, RINL-VSP achieved capacity utilization of 113 per cent,
114 per cent and 116 per cent in Hot Metal, Liquid Steel and Saleable Steel respectively
during 2010-11. Production in all major units exceeded 100 per cent of rated capacity for
the 10th consecutive year. Value added production w.r.t saleable steel is 79 per cent and
is the best since inception. On financial front, RINL registered a record turnover
Rs.11,517 crores during 10-11 and is the market leader for Bars and Structurals.
Some of the Management strategic initiatives during 2010-11 include:
Acquisition of 51 per cent stake in M/s EIL the Holding Company of M/s OMDC
and M/s BSLC (Bird Group of Companies) which has iron ore reserves of 200 Mt.
MoU with Indian Railways for setting up Axle Plant in New Jalpaiguri, West
Bengal, forming a 100 per cent subsidiary company for the purpose.
Appointment of consultant for firming up plans to diversify the product mix to flat
products category including high grade steel required in the country comprising
CRGO and CRNO electrical steel etc. in the next phase of expansion to11Mt
capacity
Implementation of Enterprise Resource Planning package in strategic areas which
is at an advanced stage.
Capital investment of more than Rs.6,000 Crores is also being made towards
upgradation and modernisation of existing facilities along with addition of Converter and
Caster, thereby increasing capacity to 7.3 Mtpa of liquid steel which include upgradation
of Blast Furnaces, Converters, Sinter Plant and related facilities with latest technology.
Cutting edge technology / practices adopted at VSP
Sourcing from the internal generation of the captive air separation plant, oxygen
enrichment of the blast in both the blast furnaces has been carried out which has
helped in remarkable improvement in the shop performance. Use of oxygen in the
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cold blast up to a level of 1.7 per cent has resulted in improving the smelting rate
thereby augmenting the production to a great extent.
To generate power to the extent of 20.6 MW by utilizing the waste heat recovered
from the straight line coolers of sinter machines 1&2 under collaboration with
NEDO (New Energy & industrial technology Development Organization), Japan
and pulverized coal injection at blast furnaces 1&2 up to 150 kg/tHM to reduce
coke rate are some of the cutting edge technologies the company has embarked
upon, the progress of which is at an advanced stage and are expected to be
implemented by 2011-12.
List of all the quality awards/recognitions that company received during 2010-11.
“Navaratna” status conferred on RINL during November 2010
The Steel Minister's trophy for 2006-07 and 2009-10
Recognition as one of "India's Best Companies to Work for 2011" based on
study conducted by the Great Place to Work Institute Inc. and The Economic
Times. RINL ranked 31st among top 50 participating companies and 5th
position in Manufacturing and Production category. RINL achieved this
recognition continuously 3 years in a row
Selected for the award of 'Certificate of Merit' of 'Global Human Resource
Development Awards- 2010' by "International Federation of Training and
Development Organizations"(IFTDO), London.
Bagged Award for 'Best Management Practices' instituted by Govt. of AP for
performance in Production, Productivity, Labour practices, Industrial relation
and CSR.
Recognition as "Excellent Water Efficient Unit" during a National
competition for Excellence in Water Management-2010 organized at Hyderabad
by CII.
Second prize amongst the integrated steel plants for the 'National
Sustainability Award' of the Ferrous Division of Indian Institute of Metals on
14th November in Bangalore.
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'Indira Gandhi Raj Bhasha Shield' for Hindi implementation on 14th Sept.
2010.
First prize in the contest on "INSSAN Award for Organizational Excellence in
Suggestion Scheme" in Steel Units' category.
Bagged 5 Nos of the prestigious Prime Minster’s 'Shram Awards' presented by
Ministry of Labour, Govt of India, given annually to the excellently performing
workers. 1 'Shram Bhushan' (50 per cent among all PSUs and 25 per cent
among all sectors) and 4 'Shram Veer' awards (67 per cent among all PSUs and
33 per cent among all sectors).
Achieved two ‘Class-C Viswakarma Rashtriya Puraskar (VRP)–2008’ awards
for innovative suggestions. RINL has won this distinction for the sixth time in a
row.
Teams from RINL bagged 20 Gold, 7 Silver and 2 Bronze Medals at the 10th
Chapter Convention of Quality Circle (CCQC) Forum of India held at
Visakhapatnam.
Seven 'Quality Circle' (QC) teams and Four '5S' teams of RINL bagged 'Gold
Medals' at the 'International Convention on Quality Concept Circles (ICQCC)-
2010
Its total manpower as on 31st December 2011 and 2012 are 17856 and 18,163.
The main products are Bars, Wire rods, structurals, rounds, billets, blooms,
pig iron and by-products.
It is having 23 Marketing offices and stock yards spread over the country.
VSP Technology: State-of-the-Art
Seven meter tall Coke Oven Batteries with coke dry quenching
Biggest Blast Furnaces in the country.
Bell-less top charging system in Blast furnace
100 per cent slag granulation at the BF Cast House
Suppressed combustion – LD gas recovery system
100 per cent continuous casting of liquid steel
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“Temporal” and “Stelmor” cooling process in LMMM and WRM
respectively.
Extensive waste heat recovery systems
Comprehensive pollution control measures
Major Sources of Raw Materials:
TABLE 3.1: MAJOR SOURCES OF RAW MATERIALS
Raw Material Source
Iron Ore Lumps 7 Fines Bailadilla, MP
BF Lime Stone Jaggayyapeta, AP
SMS Lime Stone UAE
BF Dolomite Madharam, AP
SMS Dolomite Madharam, AP
Manganese Ore Chipurupalli, AP
Boiler Coal Talcher, Orissa
Coking coal Australia
Medium Coking coal ( MCC) Gidi/Swang/Rajarappa/Karali
Water Supply:
Operational Water requirement of 36 mgd is being met from the Yeleru Water
Supply Scheme.
Power Supply:
Operation Power requirement of 180 to 200 MW is being met through Capacitive
Power Plant. The capacity of the power plant is 286.5 MW. VSP is exporting around 60
MW power to Andhra Pradesh State Electricity Board (presently Powergrid & EPDCL).
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Major units:
TABLE 3.2: MAJOR UNITS OF PRODUCTION
Department Annual capacity
(‘000 T)
Units (3.0 MT Stage)
Coke Ovens 2.261 4 Batteries of 667 Ovens and 7 Mts. height
Sinter Plant 5,256 2 Sinter machines of 312 Sq. Mts. G area each
Blast Furnace 3,400 2 furnaces of 3200 Cu. Mts. Volume each
Steel Melt Shop 3,000 3 LD Convertors each of 133 Cu. Mts. Volume
and six 4 strand bloom casters
LMMM 710 4 stand finishing Mill
WRM 850 2*10 Stand finishing Mill
MMSM 850 6 Stand finishing Mill
Main Products of VSP:
TABLE 3.3: MAIN PRODUCTS OF VSP
Steel Products By- Products
Angels Nut Coke Granulated Slag
Billets Coke Dust Lime fines
Channels Coal Tar Ammonium Sulphate
Beams Anthracene Oil
Gases: Liquid Oxygen,
Nitrogen, Argon Gas
Squares Hot Pressed Naphthalene
Flats Benzene
Rounds Toluene
Re-bars Zylene
Wire Rods Wash Oil
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iv. Vision, Mission and Objectives:
Vision: To be a continuously Growing world – class company
To
Harness our growth potential and sustain profitable growth
Deliver high Quality and cost competitive products and be the first choice of
customers
Create an inspiring work environment to unleash the creative energy of people
Achieve excellence in enterprise management
Be a respected corporate citizen, ensure clean and green environment and develop
vibrant communities around us
Mission:
To attain 16 million ton liquid steel capacity through technological up-gradation,
operational efficiency and expansion; augmentation of assured supply of raw materials to
produce steel at international standards of cost and quality; and to meet the aspirations of
the stakeholders.
Objectives:
Expand plant capacity to 6.3 MT by 2011-12 with the mission to expand further
in subsequent phases as per the corporate plan
Revamp existing Blast Furnaces to make them energy efficient to contemporary
levels and in the process increase their capacity by 1.0 Mt, thus total hot metal
capacity to 7.5 Mt.
Be amongst top five lowest cost steel producers in the world
Achieve higher levels of customer satisfaction
Vibrant work culture in the organization
Be proactive in conserving environment, maintaining high levels of safety and
addressing social concerns.
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Core Values:
Commitment
Customer Satisfaction
Continuous Improvement
Concern for Environment
Creativity & innovation
v. VSP POLICIES:
VSP takes all necessary actions for the fulfillment of regulatory requirements. It has
dedicated departments for this purpose. Energy conservation, environmental preservation,
safety in work place, and occupational health gets highest priority in the company. Some
of the policies in this regard are reproduced below.
Quality Environment and Occupational Health & Safety Policy:
Visakhapatnam Steel Plant is committed to meet the needs and expectations of
customers and other interested parties, the occupational health and safety of work force
and to preserve the environment. The accomplish this, it is required to:
Supply quality goods and services to customers’ delight.
Document, implement, maintain and periodically review the management systems
including the policy, objectives and targets.
Use resources efficiently and reduce waste & prevent pollution.
Comply with all relevant Legal. Regulatory and other requirements applicable to
products, activities and processes in respect of Quality, Environment.
Occupational Health & Safety and ensure the same by contractors.
Continually improve quality, environment, Occupational health and safety
performance with respect to products, activities, processes, premises and services.
Encourage development and involvement of employees
Maintain high level of quality, environment, occupational health and safety
consciousness amongst employees and contract workers by imparting education
and training.
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Energy Policy:
Visakhapatnam Steel Plant is committed to optimally utilize various forms of
energy in a cost-effective manner to effect conservation of energy resources. To
accomplish this, we will
Monitor closely and control consumption of various forms of energy through an
effective energy Management System.
Adopt appropriate energy conservation technologies
Maximize the use of cheaper and easily available forms of energy
HIV/AIDS Policy:
Visakhapatnam Steel Plant is committed to prevent and control the spread of
HIV/AIDS among its employees and their family members.
To accomplish this,
VSP educates its employees and their family members on prevention, care and
counseling of HIV/AIDS, and on safe blood donation and transfusion.
If an employee has been infected, it shall endeavor to keep information about the
illness confidential.
A HIV positive employee shall be encouraged to continue to work in his or her
job unless medical conditions interfere with the specific job he or she is doing.
It ensures that co-employees do not shun their HIV positive peer or refuse to work
alongside them.
It shall not discriminate against any employee infected with HIV/AIDS with
regard to promotions, training and any other privileges applicable to all
employees of the organization.
It shall ensure that the general medical tests conducted before the issue of
appointment letter will not cover HIV/AIDS without the informed consent and
pre-test counseling of the candidate.
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It shall encourage employees to participate in voluntary counseling and testing.
However, HIV/AIDS test will not be part of any annual or time-to-time health
check-ups without the employees’ consent and re-test counseling.
It provides all its AIDS patients Anti-retroviral Therapy, as and when necessary.
It ensures that all Health care personnel follow “Universal Precautions” to prevent
the spread of the disease.
HR policy:
Visakhapatnam Steel Plant believes that its employees are most important
resources. To realize the full potential of employees, the company is committed to:
Provide work environment that makes the employees committed and motivated
for maximizing productivity.
Establish systems for maintaining transparency, fairness and equality in dealing
with employees
Empower employees for enhancing commitment, responsibility and
accountability.
Encourage teamwork, creativity, innovates and high achievement orientation.
Provide growth and opportunities for developing skill and knowledge
Ensure functioning of effective communication channels with employees
Customer Policy:
VSP will Endeavour to adopt a Customer-focused approach at all times with
transparency.
VSP will strive to meet more than the customer needs and expectations pertaining
to products, Quality, value for Money and satisfaction.
VSP greatly values its relationship with Customers and would make efforts at
strengthening these relations for mutual benefit.
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Information Technology Policy:
RINL/VSP is committed to leverage Information Technology as the vital enabler
in improving the customer-satisfaction, organizational efficiency, productivity, decision
making, transparency and cost-effectiveness, and thus adding value to the business of
steel making. Towards this, VSP shall:
Follow best practices in process Automation & Business Process through IT by
in-house efforts / outsourcing and collaborative efforts with other organizations /
expert groups / institutions of higher learning, etc, thus ensuring the quality of
product and services at least cost.
Follow scientific and structured methodology in the software development
processes with total user involvement, and thus delivering integrated and quality
products to the satisfaction of internal and external customers.
Make the most out of the sate-of-the art technologies in the IT field while going
for the suitable cost effective IT infrastructure and software.
Ensure high level of date and information security across the organization.
Strive to spread IT- culture amongst employees based on organizational need, role
and responsibilities of the personnel and facilitate the objective of becoming a
world class business organization.
Enrich the skill-set and knowledge based of all related personnel at regular
intervals to make employees knowledge –employees.
Periodically monitor the IT investments made and achievements accrued to
review their cost effectiveness.
vi. Human Resource Development:
HRD Group – Key Initiatives:
RINL believes that the employees are its assets and strives to realize their
potential in full for mutual advantage. The human resource development involves
development of the employee as a whole.
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In-house Training Programs
Nominations to External Training Programs
Organizations Research, Employees’ Satisfaction Surveys & Voice of
employees’ Index.
Organization Development
Membership with Professional Bodies
Performance Appraisal for Executives
Human Resource Information System
In-plant training for Management Students
Lectures by eminent personalities Corporate Presentations
Interactions with professionals, academicians and consultants
Knowledge Management
Initiatives on “Six Sigma”
Emancipation of women through WIPS. Women Development Programs
(spring Board)
Thrust on “Samalochana”
Pursuit of Business Excellence Model (BEM)
Dil Ki baat
Training and Development:
The needs of induction training, skill up gradation, unit training, computer related
training, refresher training, foreign training, faculty development etc. are attended by the
Training & Development Centre while management development and attitudinal
development are taken care at the Centre for Human Resource Development.
Training in certain specialized areas safety, fire prevention, occupational health
etc. is also taken up by departments specializing in respective fields.
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Man Power at a Glance:
TABLE 3.4 : MANPOWER AT A GLANCE
[AS ON 31.12.2012]
Manpower Works Projects Mines
Commercial
(Marketing,
Stores & Purchase
Finance Personnel Total
Executives 3,920 342 117 575 286 926 6166
Non -
Executives
11,003 44 238 143 22 547 11997
Total
Employees
14,923 386 355 718 308 1,473 18163
vii. Marketing Network:
VSP has a wide network of Regional offices and Branch Offices spread across the
country for marketing of its products. There are 5 Regional Offices and 23 Branch
Offices. Stock Yards are attached to each of the Branches. These are catering to the needs
and expectations of the customers in various segments. The details of Regional Offices
and Branch Offices are brought out below:
TABLE 3.5: DETAILS OF REGIONAL OFFICES AND BRANCH OFFICES
Region Location of Regional Office Branches
East Kolkata Bhubaneswar, Kolkata, Patna
North Delhi Agra, Chandigarh, Dehradun, Delhi,
Faridabad, Ghaziabad, Jaipur, Kanpur,
Ludhiana
West Mumbai Ahmadabad, Indore, Mumbai, Nagpur, Pune
South Chennai Bangalore, Chennai, Kochi, Coimbatore
Andhra Visakhapatnam Hyderabad, Visakhapatnam
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Further, VSP has 04 Consignment Sales Agents in Raipur, Jamshedpur,
Pondicherry and Jammu for selling VSP’s products.
In addition to the above, Exports are carried out by the Exports Wing of
Marketing Department, located at Head Quarters, Visakhapatnam. For carrying out sales
of By-products, a separate section is there at Head Quarters.
Marketing Department of Visakhapatnam Steel Plant has successfully entered into
international markets right from the year of its integrated operations i.e., 1992. The
Company has been recognized as a Star Trading House by the Joint Director General of
Foreign Trade, Ministry of Commerce, Government of India right from the second year
of integrated operations i.e., 1993-94. This status is given to those companies, which
maintains a specified quantity of exports in the preceding three years. Subsequently, the
certificate has been renewed till 31-3-2009. As a strategy, the company is maintaining its
presence in the Export Market.
The principal products of VSP include, Pig Iron, Steel Products consisting of
Wire Rods, Reinforcement Bars rounds, Structure’s like Angels, Beams, Channels
and Squares and semis like Blooms and Billets. VSP also markets By-products
like Coal Chemical and Ammonium Sulphate and Granulated Slag. The
industries, where products of VSP are used are Construction Industry, Wire
Drawing Industry, bright Bar Industry, Fastener Industry and Forging and Re-
rolling Industry.
The end users of VSP’s products are Construction Sector, Electrode