The ISMT E – Newsletter

E=Quate 20th

August 2008

1

1 [Type the document title]

ICE (ISMT Centre for Excellence) Inaugurated

Mr. B. R. Taneja Lighting the Lamp of Knowledge

(Below) Col. Yadav briefing the audience about ICE.

Also in the photo - Mr. Salil Taneja, Mr. O.P. Kakkar,

Mr. B. R. Taneja & Mr. N. Chandra (L to R)

T h e I S M T E – N e w s l e t t e r

Volume 1, Issue 1 20th

August 2008

The ISMT Centre for Excellence (ICE),

the training institute for ISMT employees,

was formally inaugurated and opened on

Wednesday, 23rd

July 2008 at Jejuri. The

inauguration commenced with Mr. B.R.

Taneja and Mr. Salil Taneja lighting the

lamp of knowledge, followed by speeches

by Mr. O.P. Kakkar and Mr. Salil Taneja.

While the former spoke about how the

company has evolved through the years,

the latter elaborated on ISMT‟s vision for

the future. They addressed the new batch

of Graduate Trainee Engineers and

inspired them by sharing their thoughts

and anecdotes. The function was also

attended by many top officials of the

company and served as platform for a

formal introduction to the new batch of

GTEs. Mr. B.R. Taneja, Mr. O. P.

Kakkar, Mr. N. Chandra and Mr. Gurdip

Singh planted saplings at the site as a

symbol of laying a strong foundation of

knowledge and growth … something ICE

will stand for in the years to come

F e a t u r e s

E=Quate 20th

August 2008

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The PQF Technology: ISMT’s Road to the Future

As you know, ISMT has always been a

technology driven company. Through the years

we have always endeavored to go in for the latest

technology available in the international market.

In the seventies the most favored technology for

tube making was Push Bench / Pilger Mill. We

took this well thought-of strategic decision use

the the Assel Mill Technology instead, which

turned out to be the best tube making process

particularly for bearing tubes and thick walled

tubes.

In the early nineties we achieved a successful

backward integration by setting up the steel plant

at Jejuri which fed our tube plant with quality

steel. We were the first company in the country

to install round casters and have in-process

vacuum degassing. In fact, we even tried

experimenting with the rather unconventional

Planetary Mill for steel rolling but this was not

successful as it could not compact the cast

blooms. But, I must mention here that despite

this setback, we did not give up looking around

for newer and contemporary technologies.

For quite some time we were looking for a

technology that would improve the quality of

tubes and at the same time be more economical.

We have met this objective by choosing to install

the PQF Mill at Baramati. I am happy to mention

that with this mill commissioned, our capacity

would be about half a million tonnes of seamless

tubes per year and this would make us a part of

the global big league.

The PQF Mill that we have installed is the

first of its kind in India and only the third

in the world – there are two installed in

China

The PQF is a very high speed mill and can

produce up to 120 tubes per hour. It uses a

lot of digital automation which allows

setting up of the mill while it is running.

The improved tolerances and the ability to

manufacture long length tubes would open

up a huge potential from the energy sector.

A little about the process; Billets are heated

up to a temperature of about 1250 – 1300

degrees centigrade (depending upon the

steel grade) and converted into hollow

blooms in the conical piercer where the

elongation is about 3 – 5 times. These are

then transferred to the 3 roll / 5 strand PQF

Mill and the restrained mandrel is inserted

to roll the hollow bloom over the mandrel.

The entire range of products i.e. 38 to

168.3 MM of OD, wall thickness of 3 to 22

MM and length in the range of 10 to 170

meters – can be produced from one size of

input billet (200 MM OD). How does this

happen?

Continued …..

M o u t h p i e c e

By Mr. O.P. Kakkar

E=Quate 20th

August 2008

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……Continued from Page 2

While the PQF Mill produces only one size

(178 MM OD), different thickness tubes are

produced by changing the mandrel bars. Post

PQF, the tubes are passed through a 3 strand

extractor mill where again the OD of the

tubes is maintained at 175 MM OD.

We are installing a 28 strand stretch reducing

mill (SRM) to equip ourselves with the

capability to produce a wide range of tubes –

with respect to OD and wall thickness. The

SRM uses the stretch action where the OD is

reduced and the wall thickness is controlled.

With the commissioning of the PQF, your

Company would be one of the most versatile

integrated seamless tube manufacturing

companies in the world.

M o u t h p i e c e

„Features‟ and „Mouthpiece‟ are sections of E=Quate where you can contribute articles and views on

topics like Engineering, Technology, Marketing, HR, and General Management etc.

These sections aim at providing you a platform to reach out to your colleagues.

We would be using the PQF, Assel Mill,

Cold Drawn and Cold Pilger technology to

produce tubes in the range of 6 to 275 MM

OD and a wall thickness of 1.5 to 50 MM.

I would also like to mention that the

economics of operation would become a

more favorable and we should be able to

penetrate into new markets in addition to

improving our share in the already existing

markets, both domestically and

internationally

With the commissioning of the PQF Mill

we have achieved our desire to use the best

technology available internationally and I

am confident that, in the near future, we

will be able to achieve the vision of being

„the most preferred source‟ globally.

E=Quate 20th

August 2008

4


P l a n t B u l l e t i n

A h m e d n a g a r

Employees of the Month

for July 2008

Master Brain of The Month:

Mr. B.B. Majumdar (QA)

Master Executor of The

Month:

Mr. Bir Singh (Billet Cutting)

These awards were given in the

form of trophies and cash prize

by the VP (W) on 12th

August,

2008.

Record Runs

Mill II (July 2008)

Rolling of 44235 Nos. of tubes

i.e. 287 tubes more than that in

Jan 2008

Average rolling per shift for

Gang-I (under the supervision

of Mr. A.B. Mitage) – 565.68

Nos. of tubes i.e. 17.79 tubes

more than that in Jan 2008

PTD (July 2008)

Record Draw Bench – 53006

Nos. of tubes i.e. 2760 more

tubes than that in June 2008

Wipro Infrastructure Awards ISMT Limited

“Best Partner – Delivery 2007-2008”

Energy Conservation Committee Formed

Biometric Attendance System in CRRT

Under the guidance of VP (W) Mr. P.K. Kapoor, a

Committee has been formed, which is called as „Energy

Conservation Committee‟. This Committee is headed by

Mr. AS Vijay, Asst. VP – Electrical. Other members of the

Committee are Mr. SJ. Deshmukh (Mills), Mr. A.B. Gund

(Cold Pilger), Mr. M.M. Godse (Cold Draw) and Mr. V.M.

Thandapani (PTD).

This Committee under the leadership of Mr. AS Vijay has

embarked upon a campaign to enlighten all the employees

(workmen and executives) about energy conservation

through training sessions.

„Energy Conservation Awareness‟ training sessions will be

conducted on every Friday for next 3-4 months. The first

training programmer of this campaign was conducted on 8th

August, 2008.

Wipro Infrastructure Bangalore has awarded the “Best

Partner - Delivery" award for year 2007-2008 to ISMT

Limited. During the award presentation ISMT was admired

for its well managed delivery system and quick response

time. Wipro Infrastructures hailed ISMT as a strategic

partner in business and acknowledged that their production

line has been running uninterruptedly because of ISMT

supplies.

The award was one among the six special awards given to

various suppliers during the Suppliers Meet and was

attended by over 120 vendors. Mr. Sandip Nag received the

award on behalf of ISMT Limited

A device of new attendance system i.e. Biometric

Attendance System has been installed in CRRT and the

same is functioning smoothly

E=Quate 20th

August 2008

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B a r a m a t i

Saudi Aramco and Kuwait Oil Company

Approve ISMT Baramati

SAUDI ARAMCO visited on ISMT Baramati on 31st July

2008 and in-principle approved the plant for supply of API

Line Pipes. Saudi Aramco is a fully integrated global

petroleum enterprise with activities ranging from

exploration, producing, refining, distribution and shipping

of oil and petroleum products. It is the world‟s largest oil

company by production and reserves and is owned by the

Saudi Arabian Government.

Kuwait Oil Company also approved ISMT Baramati for

supply of API Line Pipes-Carbon & Alloy Steels. KOC is

another Oil company with a range of activities like

exploration operations, on-shore and off-shore surveys,

drilling of test wells, and developing of producing fields in

addition to crude and natural gas exploration.

TÜV Nord Approves ISMT Baramati

TÜV Nord approved ISMT Baramati for PED 97/23/EC and AD

2000 Merkblatt specification. TÜV NORD Group is one of

Germany's largest technical service providers and has expertise

in areas of technical safety, environmental protection, and the

conformity assessment of management systems and products,

nationally and internationally. Their activities range from

consulting, testing and servicing in Systems, Mobility,

Certification, Energy and Systems Engineering etc.

GE Oil & Gas Approves ISMT for Health

and Safety Aspects

GE Oil & Gas approved ISMT Baramati after successful

assessment on Environmental Health and Safety aspects.

GE's Oil & Gas business is a technology based global

leader that supplies advanced products, services and

complete solutions to the oil and gas industry from the

wellhead through the refining and related petrochemical

and plastics industries

Record Runs

Achieved 10060 MT

Production and 9313 MT

Dispatch in the month of

July’08

EFS Department Record

Production on 9th and 10th

August 2008:

CNC 1 - 380 nos.

CNC 2 - 381 nos.

GTEs Visit Baramati

Plant

The new batch of 47 Graduate

Trainee Engineers (GTEs) visited

the Baramati plant. They were

given an overview of the

machines, processes and plant

functioning. In addition they

were also taken on a tour of the

plant. The GTEs said that they

were very impressed by the plant

housekeeping, presentation and

process.

The new batch of GTEs is

currently undergoing classroom

training at ICE, Jejuri. They will

go through six months of class

room training at ICE and three

months of on the job training at

allotted locations.

E=Quate 20th

August 2008

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Record Runs


J e j u r i

Employee of the Month Awards Given Out

for May and June

Employee of the Month Award Scheme is an initiative (in

effect since May 2008) started at the plant with a motive to

increase employee motivation and satisfaction. Employees

are judged every month on the criteria such as personal

involvement in achieving the production targets, task

fulfillment, sharing ideas in the team, consistency in

performance, discipline, attendance, behaviour, etc. The

award has been classified in three categories:

Master Executor – Technician of the Month

Master Executor – Staff of the Month

Master Brain of the Month (for Executives)

The winners of these awards for the month of May and June

were felicitated with Trophies, Certificates and Cash

Rewards at the hands of Mr. P. B. Dhaybar (EVP-Works)

on 31st July 2008.

Employees of the Month

June 2008

Master

Executor –

Technician of

the Month

Mr. Kashinath

Ram

Master

Executor –

Staff of the

Month

Mr. M. B.

Mhatre

Master Brain

of the Month

(for

Executives)

Mr. S. M. Satav

Master

Executor –

Technician of

the Month

Mr. K. A.

Gaikwad

Master

Executor –

Staff of the

Month

Mr. I. A. Aga

Master Brain

of the Month

(for

Executives)

Mr. M. K.

Papal

Suggestion Scheme Leads to Higher

Efficiency – Employees Awarded

The suggestion scheme declared by the Company a few

months back saw soaring success in the form of high cost

savings and better efficiency. The scheme was implemented

and executed meticulously by Mr. J.S. Fadnis, Mr. M.C.

Mahamuni and their respective teams.

The successful implementation of the scheme and its

outcomes resulted in improved quality and higher

productivity. The actions taken on the suggestions by Mr.

Fadnis‟s his team and Mr. Mahamuni‟s team led to cost

savings of Rs. 2.10 Crores and Rs. 31.5 lacs respectively.

The employees were rewarded with cash reward and

appreciation letter in a ceremony at the hands of Mr. P. B.

Dhaybar (EVP-Works) on 31st July 2008.

Production of 17 heats

consistently from 9th July to

15th July 2008

Achieved Second Highest No.

of Heats Ever: 21 heats in a

day on 20th July 2008

May 2008

E=Quate 20th

August 2008

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B u s i n e s s

E c o n o m y

T e c h n o l o g y

India second best country for business

investment: Survey

Press Trust Of India / New York August 1, 2008, 18:58 IST

A survey conducted by Development Counselors

International on American corporate executives shows that

India is the second best country for business investment.

Respondents were asked to rank the business favourablity

of the world's 25 largest countries (based on GDP).

Of the 281 corporate executives who responded, 53.1 per

cent named China as the most favouable country followed

by India (45.1 per cent), Mexico (30.1 per cent), Britain

(25.4 per cent) and Canada (22 per cent). The corporate

decision-makers who named India as the best for

investment cited the country's labour force - including its

supply, skill level and cost 65 per cent of the time as the

reason for their positive perceptions. India's "growing

economy/business opportunities" and "low

overall/operating costs" were named 38 per cent and 18 per

cent of the time, respectively.

ArcelorMittal Acquires 49% stake in

Mineracao Piramide

Press Trust Of India / London August 11, 2008, 14:47 IST

World's largest steel-maker ArecelorMittal today

announced the acquisition of 49 per cent stake in the

Brazilian mining firm Mineracao Piramide for an

undisclosed amount. The company has signed an

agreement to acquire 49 per cent of the share capital in

Mineracao Piramide Participacoes (MPP), said a statement

issued by ArcelorMittal.

"This investment represents a continuing development in

our strategy of upstream integration. Securing supplies of

iron ore is an important part of that strategy and will

contribute to the future sustainability of our business,"

ArcelorMittal Group's Management Board Member Sudhir

Maheshwari said. Located at Corumba in Brazil, MPP

focuses on the exploration and development of iron ore and

manganese reserves in the region.

Steel Producers to

Keep Prices on Hold

New Delhi August 07, 2008, 0:36 IST,

Source: Business Standard

Top steel producers like SAIL,

Tata Steel, JSW and Essar have

decided to maintain status quo on

steel prices even as the three-

month price freeze ends today.

Industry sources said they have

decided to keep prices on hold as

of now since inflation is ruling at

a 13-year high of 11.98 per cent

and any increase would aggravate

the situation.

The industry had agreed to a

three-month price freeze after a

price cut of Rs 4,000 a tonne

following a meeting with Prime

Minister Manmohan Singh on

May 7. Consequently, domestic

steel prices today are cheaper by

Rs 10,000-15,000 a tonne

compared with international

prices.

Minister of State for Steel Jitin

Prasada said the government is in

regular talks with the steel

companies to ensure that they do

not take any step that might

affect the general public and

trigger further inflation

E=Quate 20th

August 2008

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Mumbai August 18, 2008, 5:23 IST, Source:

Business Standard

The auto component industry expects

growth to halve in the current financial

year owing to a slowdown in demand for

automobiles due to high interest rates and

burgeoning fuel prices. “The industry

will grow at 6-8 per cent as compared

with a forecast of 12-13 per cent,” said

Sanjay Labroo, president, Auto

Component Manufacturers Association.

In fact, commercial vehicle makers like

Tata Motors have already indicated a 20

per cent production cut in their schedules.

To combat the decline in vehicle demand,

firms look to increase exports as much as

possible. To cope with the slowdown,

part makers like Setco Automotive are

trying to push exports and renew their

focus on the after-sales market. “The

replacement market is 7-8 times bigger

than the original equipment manufacturer

(OEM) market,” said Setco CMD Harish

Sheth. That could be a viable strategy.

“In a slowdown, the OEMs accelerate

the outsourcing. International purchasing

offices of global OEMs are very active.

Last year, we exported parts worth $3.8

billion,” said Labroo, who‟s also the

managing director & chief executive

officer of sheet-glass manufacturer Asahi

India Glass.

With commodity prices cooling down,

the industry hopes that the inflationary

pressures will abate and their ride will be

less bumpy.

Auto Component Makers See

Growth Halving This Year

B u s i n e s s

E c o n o m y

T e c h n o l o g y

Monetary Policy Review

Reporter / Mumbai July 30, 2008, 3:55 IST, Source: Business

Standard

Measures Announced:

Repo Rate increased by 50 bps from 8.5 per

cent to 9 per cent

CRR to be hiked by 25 bps to 9 per cent with

effect from August 30, 2008

Bank Rate kept unchanged at 6 per cent

Reverse Repo Rate under the liquidity

adjustment facility (LAF) kept unchanged at 6

per cent

Objectives:

To ensure credit growth at 20 per cent and

deposit growth 17.5 per cent

Get inflation down from current 11.89-12 per

cent to 7 per cent by March 31, 2009. On

medium-term, bring it down to 3 per cent.

Emphasise credit quality as well as credit

delivery, in particular, for employment-

intensive sectors, while pursuing financial

inclusion.

Moderate monetary expansion and plan for

money supply growth of 17 per cent in FY09.

Help the growth of non-food credit, including

investments in shares, bonds, debentures and

commercial paper to reach around 20 per cent.

Give liquidity management priority in the

hierarchy of policy objectives.

Bring about 17.5 per cent growth in aggregate

deposits

Banks should focus on stricter credit

appraisals on a sectoral basis

E=Quate 20th

August 2008

9


Particulars As on 5th

August 2008 As on 19th

August 2008

WPI Inflation* 11.98% 12.01%

Currency Conversions

Euro (Є) Rs. 65.197 Rs. 64.06

Pound (£) Rs. 82.327 Rs. 81.20

U.S. Dollar ($) Rs. 42.150 Rs. 43.49

Stock Markets

Sensex (BSE) Closing 14,961 14543.7

Nifty (NSE) Closing 4,502 4368.25

ISMT Share Price Rs. 40.50 Rs. 37.95

Interest rates Current Values

PLR Range 13.75-17.25

LIBOR (6 Months) 3.14

Brent Crude Prices 109.71 $/barrel#

* The Inflation is calculated on the basis of the movement of the Wholesale Price Index (WPI)

and this, according to the Ministry of Finance does not reflect the movement of the Consumer

Price Index (something that affects the common man)

# 1 Barrel = 158.987295 Lt.

B u s i n e s s

E c o n o m y

T e c h n o l o g y

Key Economic Indicators

E=Quate 20th

August 2008

10


S n a p s h o t s

The New Batch of Graduate Trainees Engineers with some ISMT employees at ICE, Jejuri

The Front

View of the

ICE Building,

housing the

classroom, the

recreation room

and the dining

area.

E=Quate 20th

August 2008

11


Contact

Rakesh Duda

EVP (Corporate HRD)

Email:

[email protected]

[email protected]

Ritwik Borthakur

Executive

(Corporate Communications)

Email:

[email protected]

ISMT Ltd. Corporate Office

Lunkad Towers, Viman Nagar

Pune – 411014

India.

Tel: +91 20 66024901 | Fax: +91 20 26630779

T h e I S M T E – N e w s l e t t e r

Please send your comments and views on E-Quate and also post articles or news that you think should

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Get back to us on the contacts given below.

We hope you enjoyed going through the first issue of E=Quate, the fortnightly E-Newsletter which

will go out to all employees via their company emails. The newsletter is being started with a three-

fold objective –

1. To inform and update you about the events and issues and at all the plants and the HO.

2. To furnish you with relevant news updates about businesses, economy and technology.

3. To provide you a platform to speak out and express yourself through comments, articles etc.

It is hoped that the awareness that we aim to create by the E-Newsletter will eventually be a bridge

between you and your colleagues at different locations, hence the name E=Quate. We look forward to

your support and contributions and we will make sure you look forward to every issue of E-Quate –

the ISMT E-Newsletter

E-Quate: The Fortnightly ISMT E-Newsletter – The First Issue

The ISMT E – Newsletter

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