Sip report on marketing of Jindal Steel & Power

1

A Project Report on Marketing

Of

Jindal Steel & Power Limited

Submitted to

The Indian Institute of Planning & Management

Submitted by:-

Bishnu Shankar Singh Batch-SRPM-E-T3

Session: SS-211-13(ISBE-E) Mob: 9007513568

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Acknowledgement

Apart from my efforts, the success of this project depends largely on the

encouragement and guidance of many others. I take this opportunity to express my

gratitude to the people without whom this project would not have been a success.

I wish to express my gratitude towards Mr. Praveen Kumar, GM (HR Group),

Mr.Kaushik Basu, Sr.DGM (Marketing) / Regional Manager, Mr Pradip

Jaiswal, Deputy Manager (Marketing) and Mr Prabhav Singh, Asst.Manager

(Marketing) for providing me with an opportunity to pursue an internship at JSPL.

I would like to acknowledge the efforts and support of all employee of Kolkata

office (Marketing) for her guidance and support as my guide at JSPL. He was

extremely cooperative and willing to share his valuable experiences with me and

helping me understand the Marketing at JSPL.

I am obliged to the managers who head the Stockyards (EAST, Kolkata)

departments for their cooperation during the internship. Without them I would not

have been able to understand the supply or delivery operation at JSPL.

Bishnu Shankar Singh

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executive SummAry

It was a great opportunity to do this project for Jindal Steel& Power Ltd, sales and marketing department, Kolkata. The basic objective of the project is how product is marketed at JSPL. Moreover, to know the current market of JSPL and its competitors. It was important to know the opinion of the end users about the quality of the product and usage. Keeping the above objective in mind, every effort was made to reach to the factual position at the ground level and was tried hard to figure out the constraints. The primary data collected thereby was of quality and has thrown up some revealing facts. Detailed analysis of the raw data depicted the trend prevailing in the market about its market share and other segments of the marketing which are of immense value. In this era of brand consciousness It should also try to provide effective discount rate and different programs to attract more customers as well as retain in the present customers .Other vital things are maintaining good customer relationship by promotional schemes, raising the credit limit that is being offered to most of the companies. In fact, the brand of the group is known for high degree of trust, loyalty, worthy price and dependability. JSPL are known by their brand and their Endeavour is for carving a niche in whatever business they are in. JSPL have maintained high standards in addressing customer grievances and I‘m sure that the outcome of this study will be taken in the right perspective and hope it will act as a tool for improving the quality of products and services.

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Content

SL.NO Particular PAGE NO

Part I: Essential Company Information: 1 - 14

i. Company Product-Market scope

ii. Current Product Portfolio and Position in the Market

iii. Competitive scenario-Present and potential

Part II: The Content 15 - 26

i. Define the live problem or topic of the project working on

ii. Objective of the topic or the study

iii. Sources of data collection

iv. Report of Data Collection and Analysis

v. Findings and Observations

vi. Recommendations

vii. Conclusion

viii. Bibliography

Part III: Learning from the Internship: 27 - 39

i. Organization Structure

ii. Leadership style of Top Management

iii. Decision making styles

iv. Quality and nature of teamwork

v. Organizational culture

vi. Major strengths/Weaknesses

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e S S e n t i A l c o m p A n y i n f o r m A t i o n

Mr. Naveen Jindal is the Chairman and Managing Director of Jindal Steel & Power Limited (JSPL) which is one of the most efficiently managed steel companies in the world. The company is a part of the about US$ 15 Billion O.PJindal Group. The company has the world’s largest coal-based sponge iron capacity and has established a Rail & Universal Beam Mill, which is manufacturing the world’s longest 121 meter rails and parallel flange beams &columns in large sizes for the first time in India.

Shri O.PJindal was the Chairman of the Jindal Organization; He established a successful business enterprise Jindal Steel and Power under the flagship of the Jindal Organization, of which he was the chairman. In November 2004, Jindal was awarded the prestigious "Life Time Achievement Award" for his outstanding contribution to the Indian Steel Industry by the Bengal Chamber of Commerce and Industry. According to the latest Forbes' List, he was ranked 13th amongst the richest Indians and placed 548th amongst the richest persons of the world.

Late Shri O .P Jindal

Mr. Naveen Jindal

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orgAniSAtionAl guide

informAtion

Company: - Jindal Steel & Power Ltd. (JSPL)

Web Site: - www.jindalsteelpower.com

Human Resource Department:-

Name : Mr. Praveen Kumar

Designation : General Manager (Group HR)

Marketing Office (Kolkata):-

01. Name : Mr.Kaushik Basu

Designation : Sr.Deputy General Manager (Sr.DGM)

02. Name : Pradip Jaiswal

Designation : Deputy Manager-Marketing

03. Name : Prabhav Singh

Designation : Asst. Manager-Marketing

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HierArcHy of jSpl At kolkAtA office

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compAny product-mArket Scope

typeS of productS mArketed:-

1. Rails 2. Parallel Flange Beams 3. Medium & Light Structural Mill 4. Plates & Coils 5. Semi-Finished Products 6. Wire Rods 7. TMT Bars 8. Power 9. Ferro Chrome 10. Silico Manganese 11. Sponge Iron

rAilS

Long Rails from JSPL

• Normal grade typified by 710 N/mm2; Minimum UTS • Wear Resistance Grade typified by 880 N/mm² minimum UTS to 1080

N/mm² UTS • Crane Rails: CR 80, CR 100 sections • Track Rails: UIC 54, UIC 60 and IRS 52 sections: Up to 121 m • Provides 240/484 metre Flash Butt Welded Rails

JSPL is also a preferred supplier for Crane Rails which find widespread usage in EOT cranes as well as for Gantry Crane operations.

Applications:-

a) Rail track for High speed Trains, Sliding of Power Plants , Refineries, Cement, Fertilizers and Steel Plant ,etc.

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b) Crane rails for Ports & Harbours, Factories, Mines, Launch Pad, and Shipyards etc.

pArAllel flAnge BeAm

Product Specifications

• Channels: 250 mm-400 mm • Welded beams: 350 mm to 3000 mm (fabricated in custom made sizes) • Universal Beams: 203 x 133 to 610 x 229 mm • Universal Columns: 152x152 to 356 x 368 mm • H-Beams as per BIS Code No.IS-12778 are available for sizes up to 900 x

300 mm

JSPL today rolls 28 different sections and over 100 different variants (unit-weights) of Structural steel including beams columns and channels conferring to Indian and International series BS/UB/UC/NPB/WPB/IPE/HE

Applications:-

Refineries,Airports,Flyovers,Metro Rail Projects, Shopping Malls, Power Plants,Stadiums,Cement & Steel Plants & Industrial Sheds.etc

medium & ligHt StructurAl mill

Product Specifications

EQUAL ANGLES (ISA) 100 – 200 mm CHANNELS (ISMC) 75 – 300 mm BEAMS - NPB / IPE 100 – 300 mm BEAMS - WPB / HE 100 – 200 mm FLATS 50 – 300 mm RAILS 30 lb/yd & 24 kg/m.

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Applications:-

Ship Building, Line Pipe, Automotive, Pressure Vessel, Boilers, Pen Stocks, General Engineering & Fabrication etc.

plAteS & coilS

Product Specifications

Discrete Plates

Width 1500 mm - 3500 mm

Thickness 7 mm - 120 mm

Furnace Normalized Plates

Max. Length 13 meters

Thickness 40mm - 80mm

Cut to Length Plates

Width 1500 mm to 2500 mm

Thickness 7mm – 16 mm

Length 6000 mm – 12500 mm

Hot Rolled Plates

Width 1500 mm to 2500 mm

Thickness 7 mm – 25 mm

Max. Weight 25 MT per coil

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Cut to Length Plates

Width 1500mm to 3000mm

Thickness 7mm - 16mm

Hot Rolled Coils

Width 1500 mm to 2500 mm

Thickness 7mm - 25mm

Current production and distribution of plates and coils in various segments:

General engineering & structural fabrication

Pressure vessel & boilers

Bridges & Flyovers

Railway Wagons

Oil & Gas pipelines

Shipbuilding

Applications:-

General Engineering, Structural Fabrication, Bridges & Flyover, Shipbuilding, Boilers & Pressure Vessels, Railways Wagons, Oil & Gas Pipe Lines.etc.

Semi - finiSHed productS

Products Size Range Billets: 130 mm, 150 mm, 165 mm, 200 mm, 250 mm squares. Length - up to 13 METRES; Rhomboidity – 5 mm (max) Blooms: 285 mm x 390 mm and 280 mm x 320 mm rectangle Beam: 140 mm, 160 mm, 200 mm, 220 mm, 255 mm, 280 mm, Blanks: 305 mm, 355 mm diameter

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Rounds: 140 mm, 160 mm, 200 mm, 220 mm, 255 mm, 280 mm, 305 mm, 355 mm Diameter rounds

Slabs:

Width – 1500 mm to 2600 mm ; Thickness – 215 mm, 250 mm & 280 mm ; Length - 3.0metre to 8 metre Rhomboidity – 5 mm max; Bulging - 2.5 mm max; Camber – 2 mm per Metre; Normal cast surface

Applications:-

Beams such as H-Type, I-Type, Box Sections are used mostly in Large support column, and Beams for manufacturing & Process Plant, Airports, High Rise, Buildings, Power Plants, Stadiums, Flyovers, Forging Industry, Rolling Units and Seamless Pipe Manufacturers in India as well as International market of Europe, South-East Asia, West-Asia and Middle East etc.

wire rodS

Product Specification:-

• Plain Rod : 5.2, 5.5 – 22 mm (in 0.5 mm increments) • Coil weight : 2.48 ton • Coild Outside Dia : 1250 mm • Coil Inside Dia : 850 mm

Dimensional Tolerance

Size (mm) Tolerance (mm) Maximum Ovality (mm)

5.5 – 22.0 +/- 0.10 0.12

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Grades Low Carbon Grades: SAE 1006/1008/1010/1012/1015/1018/1020, CAQ Medium Carbon Grades: SAE1030/1035/1038/1040/1541/EN8D High Carbon: HC36/40, HC41/45, HC51/55, HC56/60, HC61/65, HC66/70, Tb68, HC71/75, HC76/80, HC81/85, PSC116, SWR52A, SWR62A, SWR82A Cold Heading Quality: SAE1010/1015/1018/1020, SAE10B21, SAE15B25, SAE15B41, 19MnB4

Electrode Quality Grades: EQ (IS2879), JSPL Weld (MIG), EM12K

Free Cutting Grades: SAE 12L14, EN 1A, EN 8M, EN 15AM

Ball Bearing Grades: EN31, SAE52100

Alloy Grades: 16MnCr5, 20MnCr5, SCM 415H, SCM 420H, SAE8620, SAE4135, SAE4140

Applications:-

Fasteners, Bolt, Rivets & Screw, General Purpose Wires, Nails, Electrode Wires, Industrial Wires, Agricultural Wires, Chains & Upholstery Wires, Tyre Bead & Hose reinforcement Wires, Pre-Stressed Concrete Strands Wires, Spring Wires, Wire Ropes etc.

tmt BArS

Sizes (in mm) – 8,10,12,16,20,25,28, 32, 36, 40

Chemical Properties IS 1786 Fe 500D JSPL 500D (Typical Values)*% Carbon (max.) 0.25 0.25%

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Sulphur (max.) 0.04 0.035% Phosphorous (max.) 0.04 0.035% S+P (max.) 0.075 0.07% Carbon Equivalent (max.) 0.42 0.42

Mechanical Properties IS 1786 Fe 500D JSPL 500D (Typical Values)

Yield Stress-YS (N/MM2) (min.) 500 540 Elongation (min.) 16 18 Ultimate Tensile Stress (UTS) (N/MM2) (min.) 565 600

Applications:-

They are ideal for high rises, dams, bridges, individual houses and any critical structures where high yield strength is required without compromising on the elongation properties. They are used as wide spread construction purpose.

ferro cHrome

Specifications

Characteristic Requirement

% Chromium : 60 to 66

% Carbon : 6 to 8

% Silicon : 4 Max.

% Sulphur : 0.05 Max.

%Phosphorous : 0.05 Max.

Size : 10 - 150 mm

Applications:- In the production of stainless steel. used in specialist applications such as engineering steels where a high Cr to Fe ratio and minimum levels of other elements such as sulphur, phosphorus and titanium are important and production

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of finished metals takes place in small electric arc furnaces compared to large scale blast furnaces.

HigH cArBon Silico mAngAneSe

Specifications of High Carbon Silico Manganese (SiMn)

Characteristic Requirement

% Manganese : 60 % min.

% Silicon : 15 % min.

% Carbon : 2 % max.

% Iron : 22 % min.

%Phosphorous : 0.35 % Max.

% Sulphur : 0.025 % Max.

Size : 10 - 80 mm (± 10 %)

Sponge iron

Specifications

Characteristic Requirement

% Non-magnetic

: 1.0 Max.

% Metallic Fe : 81 Min.

% Total Fe : 91 Min.

Metallization : 88 Min.

%Phosphorous : 0.07 Max.

% Sulphur : 0.07%

% Carbon : 0.3 Max.

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% SiO2+ Al2O3

: 5 Max.

Size : A-grade lumps 3-20 mm (-3 mm 5% Max.) A-grade fines 0-6 mm (+6 mm 5% Max.)

Applications

a) Sponge Iron is one of the most important and the basic raw materials

required for the production of various steel/iron based products like TMT bars, D.I Pipes etc.

b) Sponge Iron is a part–substitute for steel scrap used for manufacturing steel by electrical arc furnaces and induction furnaces.

c) Steel melting scrap is primarily required for using as a feed material in all mini steel plant that use this scrap for melting in electric arc furnace/induction furnace to manufacture steel.

d) Sponge Iron is also good suitable material for using as a coolant in LD converters of the Integrated Steel Plants.

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current product portfolio And poSition in tHe mArket

Range of products which is being offered by the Jindal Steel & Power Limited to its market is mentioned below.

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JSPL

Finished Goods Semi-Finished

1. Beam 1. Beam Blank 2. Channel 2. Bloom

3. Column 3. Billet 4. Rail 4. Round 5. Wire Rode 5. Slab 6. Plate 6. Sponge Iron 7. Coil 8. TMT 9. Angle 10. Ferro Chrome 11. Silico Manganese

plAyerS in mArket for Steel production

1. Steel Authority of India (SAIL) 2. TATA Steel 3. ESSAR 4. Jindal Steel & Power Limited (JSPL) 5. Bhushan Steel 6. JSW 7. RINL 8. SJK

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mArketing of jindAl Steel &

power limited (jSpl) productS.

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oBjectiveS of tHe project In Jindal Steel Plant there is various section of marketing department. Since I have chosen “Marketing Strategies for the secondary products at BSP”, my main objectives are:

1. Market study of products of JSPL.

2. To know what JSPL products is why it is necessary to sell the JSPL

products.

3. To know the pricing of JSPL products.

4. Ensuring timely dispatch of material products, scrap etc. to the potential

customers.

5. To know the use of JSPL product.

6. To know the others terms and conditions for marketing of JSPL products.

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SourceS of dAtA collection

collection of dAtA:

1. Primary Data:

1. Data collected from Database of the company; 2. References

2. Secondary Data:

1. Discussions with managers 2. Referring newspaper, journals and magazines 3. Information collected from Internet

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reportS of dAtA collection And

AnAlySiS

dAtA collection:- In addition to the intrinsic sampling error, the actual data collection process will introduce additional errors. These errors are called non-sampling errors. Some non-sampling errors may be intentional on the part of the interviewer, who may introduce a bias by leading the respondent to provide a certain response. The interviewer also may introduce unintentional errors, for example, due to not having a clear understanding of the interview process or due to fatigue. Respondents also may introduce errors. A respondent may introduce intentional errors by lying or simply by not responding to a question. A respondent may introduce unintentional errors by not understanding the question, guessing, not paying close attention, and being fatigued or distracted. Such non-sampling errors can be reduced through quality control techniques. dAtA AnAlySiS - preliminAry StepS:- Before analysis can be performed, raw data must be transformed into the right format. First, it must be edited so that errors can be corrected or omitted. The data must then be coded; this procedure converts the edited raw data into numbers or symbols. A codebook is created to document how the data was coded. Finally, the data is tabulated to count the number of samples falling into various categories. Simple tabulations count the occurrences of each variable independently of the other variables. Cross tabulations, also known as contingency tables or cross tabs, treats two or more variables simultaneously. However, since the variables are in a two-dimensional table, cross tabbing more than two variables is difficult to visualize since more than two dimensions would be required. Cross tabulation can be performed for nominal and ordinal variables. Cross tabulation is the most commonly utilized data analysis method in marketing research. Many studies take the analysis no further than cross tabulation. This technique divides the sample into sub-groups to show how the dependent variable varies from one subgroup to another. A third variable can be introduced to uncover a relationship that initially was not evident.

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AnnuAl production cApAcity of Steel

compAnieS:-

Sl.NO Company Name Annual Production capacity in metric Tonne Per Year

1 Steel Authority of India 26

2 TATA Steel 23.3

3 ESSAR 14

4 JSW 10

5 Jindal steel and power 3

6 RINL 2.820

7 Bhusan Steel 2.3

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SALES FOR 2010-2011 & 2011-2012 Of Kolkata Marketing Office MONTH YEAR RUBM PLATE COIL TMT MLSM WR SEMIS TOTAL

APRL 2009-10 2229 3677 975 0 0 0 0 6881 2010-11 1,581 2,986 2,282 565 0 1,135 0 8549 2011-12 3,158 3,733 375 472 496 3,554 22 11810

MAY 2009-10 4,702 4,000 4,078 0 0 0 0 12780 2010-11 1,460 5,054 779 522 0 396 0 8211 2011-12 6,103 3,987 1,533 1,098 722 3,648 0 17091

JUNE 2009-10 3,617 6,439 1,997 0 0 0 0 12053 2010-11 1,874 5,310 1,212 280 0 1,431 0 10107 2011-12 4,838 5,766 1,267 1,442 813 1,658 0 15784

JULY 2009-10 4,314 5,190 2,973 0 0 0 0 12477 2010-11 2,647 5,459 2,346 418 0 4,219 0 15089 2011-12 6,244 5,948 187 665 1,643 1,704 0 16391

AUG 2009-10 5,753 6,343 345 0 0 0 0 12441 2010-11 2,225 3,771 1,182 723 0 5,836 0 13737 2011-12 4,322 4,152 644 1,817 768 4,431 0 16134

SEP 2009-10 4,456 4,451 3,150 0 0 0 0 12057 2010-11 2,445 4,235 1,677 485 0 747 281 9870 2011-12 5,839 5,778 520 1,347 1,163 2,718 0 17365

Oct 2009-10 2,303 6,572 1,643 0 0 0 0 10518 2010-11 4,416 1,840 2,535 440 0 3,900 0 13131 2011-12 3,265 3,691 205 948 672 1,753 0 10534

Nov 2009-10 1,538 5,120 942 0 0 0 0 7600 2010-11 4,697 5,889 1,487 1,857 76 3,095 0 17101 2011-12 4,113 6,266 21 1,931 1,207 4,488 0 18026

DEC 2009-10 2,646 8,040 3,561 0 0 0 0 14247 2010-11 4,580 5,454 5,380 26 0 1,859 0 17299 2011-12 5,461 6,096 0 2,829 780 3,829 0 18995

JAN 2009-10 1,060 5,776 0 0 0 0 0 6836 2010-11 3,774 4,469 602 185 0 5,767 0 14797 2011-12 4,734 8,476 697 3,365 1,021 2,007 0 20300

FEB 2009-10 2,785 5,346 4,679 0 0 0 0 12810 2010-11 5,393 6,156 1,141 1,089 566 2,491 0 16836 2011-12 3,278 12,755 524 8,101 2,919 1,242 0 28819

MAR 2009-10 3,692 6,067 10,969 0 0 0 0 20728 2010-11 6,417 7,358 932 68 512 3,222 21 18530 2011-12 3,961 4,991 1,269 6,892 3,441 3,692 49 24295

GRAND TOTAL

2009-10 39,095 67,021 35,312 0 0 0 0 1,41,428 2010-11 41,509 57,981 21,555 6,658 1,154 34,098 302 1,63,257 2011-12 55,316 71,639 7,242 30,907 15,645 34,724 71 2,15,544

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findingS And oBServAtionS

Enterprises always have a clear view of the market in which they act: without a strong knowledge of the markets, they can’t face their competitors and in a short time they could lose market share, beginning a decline phase. For this purpose the knowledge of the market assumes a strategic role since each step in any direction could be done only with a previous research on market players, products and features of their own environment.

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jSpl’S poSition in mAjor Steel producerS in

indiA

Sl.NO Company Name Annual Production capacity in metric Tonne Per Year

1 Steel Authority of India 26

2 TATA Steel 23.3

3 ESSAR 14

4 JSW 10

5 jindAl Steel And power 3

6 RINL 2.820

7 Bhusan steel 2.3

There are so many competitors in market but among few top ranking steel companies which is mentioned above in table with their annual production capacity show where Jindal Steel & Power Limited (JSPL) stands. Jindal Steel and Power Limited (JSPL) is one of India's major steel producers with a significant presence in sectors like Mining, Power Generation and Infrastructure. With an annual turnover of over US$ 3.5 billion, JSPL is a part of the US$ 15 billion diversified O. P. Jindal Group and is consistently tapping new opportunities by increasing production capacity, diversifying investments, and leveraging its core capabilities to venture into new businesses. The company has committed investments exceeding US$ 30 billion in the future and has several business initiatives running simultaneously across continents.

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recommendAtionS Steel Industry has an important role to play in the development Of any economy. The sector’s sustained growth, therefore, is one of the Important prerequisites for attaining the level of GDP growth envisaged in the 11th Plan. The sectors growth during the 11th Plan, however, is going to be Largely driven by market forces in a deregulated economic environment. While the industry’s future prospects may be determined by Market forces, the Government will continue to play a pro-active role Especially in areas where the actual achievements fall short of expectations. At the same time there is also a need to exploit the industry’s growth potential Fully. The on-going processes of global relocation and world-wide restructuring have clearly shown that the focus of the industry will gradually shift to those Countries which have raw materials, low cost labour and technical manpower, High potential of technology absorption and a rapidly growing domestic Market as well as proximity to other growing markets. India has the potential To emerge as a global player during the Eleventh Plan period, if the inherent Advantages like availability of quality iron ore, cheap labour, and technical Manpower and growing domestic demand are leveraged properly. Its Capability has already been demonstrated in the last decade and a half when It improved its position from the 11th place in 1991 to become the 7th largest Producer of steel globally in 2005. As the 11th Plan period is going to be Crucial for not only maintaining but also improving the overall momentum of Growth in this sector and this for a conducive policy environment. Few factor to be considered from my opinion to lead with above mentioned steel manufacturing companies are follow:-

1. RELATED TO PRICING :- JSPL should look after his pricing factor. It is seen that pricing is one of the important key factor in field of marketing of product is manufactured. JSPL should have benchmark with government pricing factor because most of customers look for lower pricing during purchasing .This is the reason that customers make enquiry about pricing first of all from all steel manufacturing company, then they compare the price ,when they find that

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after seeing the quotation they discuss about other price to the sells persons which is termed as negotiation .

2. RELATED TO KEY CUSTOMERS:- According the position in terms of productivity mentioned above JSPL should increase his productivity capacity, which will help sells person to keep on his promises with the customers .It is seen that when demand is high nut productivity is low, his makes bad impact on the company. JSPL should focus on the expansion plan.

3. THE SEVEN C S SHOULD BE FOLLOWED. I. Consistent Quality

II. Committed Delivery III. Customized Products IV. Competitive Prices V. Complaint Settlement

VI. Contemporary Products VII. Culture of Customer Services

4. The company should maintain good relationship with dealers.

5. The company should provide some more margins to dealers because if it happens then the dealers will be initiated to sell more and motivated.

6. There should be more promotional awareness.

7. There should be maintaining a gap between dealers in the same region.

8. While introducing product JSPL should use more innovative marketing campaigns.

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concluSion

At last it is concluded that the company as a whole is a well branded company. The goodwill of the company is good. As one of the India’s most valuable and respected corporations, JSPL is widely perceived to be dedicatedly nation – oriented .Chairman Mr. Naveen Jindal call this source of inspiration “ a commitment beyond the market ”.In his own words : “JSPL believes that its aspiration to crest enduring value for the nation provides the motives force to sustain growing shareholders value. JSPL practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part.’’

JSPL employs or 125000 people at more than nine locations across India. The company continuously endeavors to enhance its wealth generating capabilities in a globalization, fulfill the aspiration of its defence and non-defence. This over-arching vision of the company is expressively captured in its position.

At the onset I would like to thank all the associate authorities who have helped me out in this project a successful completion at the end.

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BiBliogrApHieS

Websites:-

o www.jindalsteelpower.com o www.sail.com o www.tatasteel.com o www.essarsteel.com o www.steel.nic.in o www.bhushansteel.com o www.wikipedia.com o www.economywatch.com

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orgAnizAtion Structure

At present there are 24 levels in Jindal Steel & Power Ltd:-

1. E.V.C & M.D

2. V.C & CEO

3. Deputy M.D

4. Executive Director/Directors

5. President

6. Executive Vice President

7. Senior Vice President

8. Vice President

9. Assistant Vice President

10. Senior General Manager

11. General Manager

12. Senior Deputy General Manager

13. Deputy General Manager

14. Assistant General Manager

15. Senior Manager

16. Manager

17. Deputy Manager

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18. Assistant Manager

19. Executive

20. Management Trainee

21. Junior Executive Engineer/Overman

22. Officers Foreman/Senior Chemist/Trainee Engineers

23. Senior Assistant Foreman/Chemist/Senior Supervisor

24. Assistant Foreman/Supervisor

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leAderSHip Style of top mAnAgement

34

deciSion mAking Style

Identify

Problem

Select

Alternative

Implement

Alternative

Evaluate

Results

1

Develop

Alternatives

Analyze

Alternatives

Develop

Decision

Criteria

Allocate

Weights to

Criteria

2

3

4 5

6

7

8

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QuAlity And nAture of teAmwork

Quality and nature of Teamwork:-

1. Clear objectives and agreed goals

2. Openness & confrontation

3. Support & Trust

4. Co-operation & Conflict

5. Sound Procedures

6. Appropriate leadership

7. Regular review

8. Individual development

9. Sound inters group relations.

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orgAnizAtionAl culture

Organization Culture is an idea in the field of Organizational studies and

Management which describes the psychological, attitude, experiences,

beliefs and values (Personal and cultural values) of an organization. It has

been defined as “the specific collection of values and norms that are shared

by the people and groups in an organization that control the way they

interact with each other and with stakeholders outside the organization.

The definition continues to explain organizational values, also known as

“beliefs and idea about what kind if goals members of an organization

should pursue and idea about appropriate kinds or standard of behaviour

organizational member should

Use to achieve the goal. From organizational value develop organizational

norms, guidelines, or exceptions that prescribe appropriate kind of

behaviour of organizational member toward one another.

Organizational culture and corporate culture are often used

interchangeably but it is a mistake to state that they are different concepts.

All corporations are also organizations but not all organization is

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corporation. Organization includes religion institution, on-for-profit groups,

and government agencies. There is even Canadian criminal code definition

of :organized Crime” as meaning a group comprised of three or more

person which has ,as one of its primary activities or purposes, the

commission of serious offences which likely result in financial gain.”

Corporations are organizations and there are legal entities. Corporate

Culture is the total sum of the values, customs, traditions, and meaning

that make a company unique. Corporate culture is often called “the

character of an organization”, since it embodies the vision of the company’s

founder. The value of a corporate culture influences the ethical standard

within a corporation, as well as managerial behaviour.

There are mainly two type of culture:-

1) Strong Culture

2) Weak Culture

Strong culture is said to exist where staff respond to stimulus because of their

alignment to organizational values. In such environments, strong cultures helps

firm operate like well-oiled machine, cruising along with outstanding execution

and perhaps minor tweaking of existing procedures here and there

Conversely there is Weak Culture where there is little alignment with

organizational values and control must be exercised through extensive

procedures and bureaucracy .Where culture is strong – people do things because

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they believe it is the right thing to do –there is a risk of another phenomenon,

Groupthink

Organization with their cultures are written below:-

1) Jindal Steel & Power is committed towards total satisfaction of

customers and others stakeholders and achieving business

excellence.

2) We at Jindal Steel & Power Limited will work for implementation of

Total Productive Maintenance (TPM) at all spheres of our activities.

3) Jindal Steel & Power Ltd., Raigarh, is committed to work for effective

utilization of all types of energy.

4) Jindal Steel & Power Limited is committed to establishing a safe work

culture

Vision, Mission, Values, Goals & Strategies of J.S.P.L:-

Vision

“To be a globally admired organisation that enhances the quality of life of all

stakeholders through sustainable industrial and business development”.

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Mission

We aspire to achieve business excellence through:

• The spirit of entrepreneurship and innovation

•Optimum utilisation of resources

•Sustainable environment friendly procedures and practices

• The highest ethics and standards

•Hiring, developing and retaining the best people

•Maximising returns to stakeholders

•Positive impact on the communities we touch.

Values

•Passion for People

•Business Excellence

•Integrity, Ownership and Sense of Belonging

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•Sustainable Development

GOALS:-

•Long Term Goals:

Achieving 20 MT steel capacity by 2015.

Achieving 1800 MW Power by 2010.

To fulfil this organization is setting up 6 MT steel plant at Angul,5 MT PA steel

plant at Jharkhand,2 MT steel plant at Bolivia & expansion of the existing steel

plant at Raigarh from 2.0 MTA to 6 MT PA.

•The Key Strategic Goals are

:-1.Reduction in cost without compromising product quality.

2.Meet the satisfaction of customers & widen market base through emphasis on

special steel.

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3. Adhering to environmental statutory norms, conservation of resources & waste

management.

•S.M.A.R.T Goals of J.S.P.L :-

S– Specific

M– Measurable

A– Aggressive

R– Realistic

T– Time Period

STRATEGIES [ H.R ]:-

1) Practices for gathering & understanding the developments/trends inthe

external environment, relevant to the formulation of H.Rstrategy

2) Practices for understanding the internal performance levels, skillsets &

competencies available etc. to develop strategies & plans to meet the

organisational objectives.

3) How does the organisation develop & refine its H.R strategy & what are the

key inputs considered? Taking inputs from various sources like consultants,

other organisations, sister concerns, H.R Policies & inputs from peers &then

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the H.R team meets to develop & refine policies that will helping setting up

our strategies for the future.

4) The organization structure, policies & people processes supporting the

achievement of the strategic objectives.

5) Defining the required outcomes & corresponding performance measures

with targets & comparisons with yearly defined goals

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mAjor StrengtHS/weAkneSSeS

SWOT Analysis of the Organization:-

Strengths:-

1) Availability of the iron ore

2) Low labour wage rate

3) Abundance of quality manpower

4) Mature Production base

Weaknesses:-

1) Unscientific Mining

2) Coking coal import dependence

3) Low R & D Investment

Opportunities:-

1) Unexplored rural market

2) Growing domestic demand

3) Exports

4) Consolidation

Threats:-

1) China becoming net explorer

2) Protectionism in the west

3) Dumping by competitors

4) Global economic slowdown