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Material Management

CHAPTER - 01
INTRODUCTION
Materials Management Meaning:
Material management involves Planning Programming, Organizing directing,
controlling and coordination the various activities concerning the material.
Materials management is the branch of logistics that deals with the tangible
components of a supply chain. Specifically, this covers the acquisition of spare parts and
replacements, quality control of purchasing and ordering such parts, and the standards
involved in ordering, shipping, and warehousing the said parts.
Material Management is concerned with control of materials in such a manner
which ensures maximum return on working control material management is concerned
with the location & purchase of needed their storage & movement. It also arranges to
keep on account for them .it is also responsible for planning their movement through
manufacturing processes, store rooms and distribution channels.
Planning and control of the functions supporting the complete cycle (flow) of
materials, and the associated flow of information. These functions include (1)
Identification, (2) Cataloguing, (3) Standardization, (4) Need determination, (5)
Scheduling, (6) Procurement, (7) Inspection, (8) Quality control, (9) Packaging, (10)
Storage,(11) Inventory control, (12) Distribution, and (13) Disposal also called materials
planning.

Definition:
According to Bailey and Farmer defines the term materials management as
"Management of the flow' of material into on organization to the point when those
materials one converted into the firm's end product are finished product, Material
management is "an organizational concept in which a single manager has authority and
responsibility for all activities, principally concerned with the flow of material into an
organization, It includes purchasing production planning and scheduling, incoming traffic
inventory control, receiving and store.

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Material Management
Areas of Concentration
Goals:The goal of materials management is to consolidate and efficiently handle core
services. It creates truck deliveries and service vehicle routes that reduce conflicts for
vehicles and pedestrians Delivery sites and loading docks are more effective and reduce
redundancy. Cost is reduced when it comes to solid and hazardous waste removal, storage
and recycling. Utility infrastructure and service equipment relocation can improve
aesthetics.

Quality Assurance:- A large component of materials management is ensuring that


parts and materials used in the supply chain meet minimum requirements by performing
Quality assurance (QA).While most of the writing and discussion about materials
management is on acquisition and standards much of the day to day work conducted in
materials management deals with QA issues.
Parts and material are tested, both before purchase orders are placed and during use, to
ensure there are no short or long terms issues that would disrupt the supply chain. This
aspect of material management is most important in heavily automated industries, since
failure rates due to faulty parts can slow or even stop production lines, throwing off times
tables for production goals.

A. Importance of Material Management:


The importance of materials in organizational performance has been ever increasing
materials one any commodities used directly or indirectly in producing a product or
service. Such as raw materials component parts assemblies and supplies.
In the manufacturing organization, the important inputs one referred to as 5Ms i.e. Men
(Labour), Machines, Money, Materials and Methods. The relative importance among
these five Ms have shifted from time to time Materials alone account for about 60% to
70% of the units cost of the many of the products. Materials management is an integral
part of production management.

B. Reasons for significance of Material Management in an Organization:


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Material Management
The amount of money spent on materials is higher than other inputs put together (i.e.,
Machinery, labour, energy etc.)
Materials offer considerable scope for reducing costs and improving profits.
Since materials is treated as a major part of current Assets.
Materials add value to the product.
Quality of finished product depends on the quality of materials uses to produce them.
Material management encompasses areas such as purchasing, storing, Inventory control,
materials handling, transportation, and shipping etc.
Thane is need for procurement and preservation of scarce materials for future use.
There is increasing demand for ensuring safety of environment by using biodegradable
and less toxic materials which do not cause any Health hazard.
The efficiency of a firm depends upon the availability of right Materials.
Materials one life blood of development of humanity.

C. Functions of Material Management:


Materials handling.
Materials planning and programming.
Raw material purchasing
Receiving, store keeping and ware housing.
Issue of material
Inventory control.
Value engineering and value analysis.
Transportation of materials and handling of materials.

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Material Management
Material accounting
Vendor development, vendor evaluation and vendor rating.
Disposal of scrap and surplus.
Traffic management
Logistics management
Supply chain management

D. Objectives of Material Management:


The objectives can grouped as,
1. Primary objectives
2. Secondary objectives

1. Primary Objective of materials management:Primary objectives that contributes to the achievement of overall company objectives.
These are concerned with achieving.
1. Buying best items at lowest prices
2. High inventory turnover maintaining the flow and products
3. Low cost, acquisition and possession & elimination of material wastage
4. Continuity of supply
5. Consistency of quality
6. Low payroll cost and increasing profit margin of firm
7. Cordial relations with suppliers
8. Development of personal and enhance the competitiveness of firms
9. Maintenance of good record

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Material Management

2. Secondary objectives of Materials management:


Secondary objectives that contributes to the achievement over all company objectives
but indirectly.
1. Reciprocity
2. New materials and products.
3. Economic make or buy decision
4. Promotion of standardization
5. Product improvement

E. Advantages or Benefits of Material Management:

Material cost can be lowered.

Controlling of the indirect cost.

Risk of inventory loss minimizing.

Better utilization of equipment.

Reduction in loss of time of direct labour.

Cost of material used in different departments ascertained.

Control of manufacturing cycle.

Materials congestion in storage places avoided

Improvement in delivery of the product.

F. Material Management Concept:


Production Planning &

Material Control

Material handling

Control
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Inventory control

Material Management

Supplier A

Customer X

WI
P

Finishe
d
Product

Raw
Materia
l

Supplier B

Customer Y
WI
P

WIP= Work in Progress


Material management in an industry can be stated in general terms as management,
flow of materials in a production or manufacturing unit. The material management
functions included among other controlling or regulating the flow of material in relation
to changes in variable like demand, price availability, delivery schedules etc. In actual
practice this boils down to how much when from whom and how to order and to store.

G. Materials Flow in a Manufacturing Company:


Vendors receive the orders from purchasing department, which in turn Supplies materials
to the concern. The receiving department of the concern checks the quality quantity of the
materials in laboratory by the quality control officers. The next step is to weight the
loaded vehicle through weighted machine after Unload the raw materials. In each bag
take sample of material. This will tested by the laboratory (in quality assurance
department). There is anything problem arises, the material stored in the store room and if
any problem rejection is made to Suppliers. The suppliers should returns the actual
needed goods within 15 days from date of the materials received. The material moves
sequentially from machine To machine and there may be in process storage in between.
The finished product finally goes to finished part stores. Where it will be stored from

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Material Management
there it will be moved to a shipping department, ultimately, the product goes to the
customers.

H. Activities that relate to the flow of the materials:


Purchasing
Receiving
Inventory control
Production control
Ware housing
Inbound traffic
Outbound traffic
In plant storage
Material handling
Distribution

I. Organization chart for the material management functional unit:


Chief material manager is the function head. The chief material manager Reports to the
head of the commercial group.

The four main departments of material management are:1. Material planning


2. Stores
3. Purchase
4. Inventory control

J. Organization chart for Materials Management:

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Material Management
General Manager

Other Chief Managers

Chief Manager

Manager

Manager

Manager

Inventory Mgr.

1. Plant and machinery


2. Project material/ Sub contracting
3. Market survey/ Vendor development
4. Budget sales
5. Transit
6. Commercial
7. Salvage
8. Project store
9. Inventory analysis
10. Stock control
K. Challenges of material management:
Share capital for investing in material management.
a) Difficulty in forecasting demand accurately
b) Increasing cost of land and storage space.
c) Selection of appropriate vendors.

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Material Management
d) Optimizing purchasing quality of materials.
e) Diversification of product lines.
f) Optimizing time and quality of demand for products.
g) Managing information.
L. Scope of Material Management:
Thomas F. Wallace and John R. Dougherty defines Material management as "The
grouping of management functions supporting the complete cycle of Material flow, from
the purchase and internal control of production material to the planning and control of
work in process to the ware housing shipping and distribution of finished product".

M. The Sequence in A Material Management Function is as Under:

Purchasin

Receivi

Insp

Raw Material Stores

Issu

Material

Finished Goods

Distributi

Shipping

Finished
Component Stores

Custome

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Production
Departme

Material Management

Materials Handling
Meaning:
Material handling is an important activity not only stores, but also in production. It
includes all movement of materials in manufacturing situation.
Definition:
Material handling is defined as, "Handling of material it is system or combination
of methods, facilities, labour and equipment for moving, packing and storing the
materials to meet specific objectives".
According to Raymond of Klwice:Material handling division of American society of mechanical engineers has
approved the following definition, "Materials handling is the art and science involving,
packing and storing of substance in any from.
1. Importance of Materials Handling:
Efficient materials handling is important in industry .It is as important as efficient
transportation in the location of manufacturing facilities. Materials are to be loaded,
unloaded at various points, moved through inspection and production operation to storage
areas and finally to the shipping department. These movements do not add value to the
product but they do add to the cost. Some manufacturing spend between 20 to 30 % of
their factory on materials cannot be Avoided as it is one of the major functions in
materials management.

2. Objectives of Materials Handling:


Capacity Increases
Customer services improvement
Working conditions improvement

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Material Management
Higher productivity
Better space utilization
Reduce congestion that impedes the movement of materials.
Reduce e hazards to personnel.
Reduce workers fatigue
Increase efficiency of shipping and receiving.
Improve personnel comfort.
Decrease damages in handling and shipping.

3. Principle of Materials Handling:

Principles of materials
handling

Related to planning

Planning

Related to Equipment

Mechanization

Related to operation

Control/Principle

Systems

Automation Principle

Materials flow

Equipment Principle Performance Principle

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Capacity Principle

Material Management
Simplification

Flexibility Principle

Gravity

Dead Weight Principle

Space utilization

Motion Principle

Safety Principle

Idle time Principle

Obsolescence Principle

4. Relevance of Materials handling to Material Management Function:


Packing carried out at suppliers premises.
Loading transportation by suppliers.
Unloading at buyer's premises.
Inspections of incoming materials.
Warehousing and Binnig in stores.
Issue of material to manufacturing.
IN- Process handling at various steps of production.
Handling materials at various stages of inspection.
Packing finished goods.
Warehousing the finished goods.
Loading on transport carries.

5. Problems in Materials Handling:


Frequent stoppage of production.
Waste of labour skills.

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Material Management
Damage causes to materials by negligence or use of improper handling box and
equipment's.
Accumulation of materials.
Congestion of floor space near machine and work centers and near the gang Ways or
aisles.
Congestion of space at receiving store
Materials are kept waiting for a long period.

Material Planning
Meaning:
Material planning is the scientific way of determining the requirements of raw
materials, components, spans and other items that go into meeting the production need
with in economic investment policies.
Material planning is a subset of the overall production planning and control system
which has broad prospective. A material budgeting is an estimate of expenses to be
incurred in the procurement. Of materials and it helps effective execution and control of
material plans.

1. Significance of Material planning:


Lack of proper materials planning and co-ordination leads to over ordering or under
ordering of materials.
Poor planning for materials may leads to unwarranted emergency.

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Material Management
Material planning activity raises the level of the buyer from a mere order placer to a
purchase executive.
Material planning is aims at motivating people and saves as on effective control device.
Efficiency material management function cannot be visualized without a sensible or
efficient materials planning function.

2. Benefits of Materials planning:


Material planning both and quantity and value in terms of rupees each item and overall.

Material planning helps to get things done efficiently by better forecasting of future
material needs.

A well designed material planning system precedes steps for effectively materials
budgeting follow up of suppliers.

Purchase planning is based on material planning.

3. Factors influencing Material planning:


The various factors influencing the material planning process are classified as,
Macro factors which affect material planning are price trends business cycle, import
policy of the government, credit policy.
Micro factors affecting material planning include corporate objectives working capital,
seasonality, delegation of powers and communication system used by the firms.

4. Guidelines to be used for effective and reliable material planning:


The planning horizon should cover the longest lead rimes anticipated.
If the demand fluctuated or shows a seasonal variation, their effect on
the planning must be taken care of.
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Material Management
For short planning horizons, if more planning periods are considered with in the year,
materials plans will be more reliable. However, quarterly plans are more popular than
monthly or weekly plans.
Computerization of material planning process is advisable because computer are helpful
to handle changes caused by fluctuation in demand and work out new or revised materials
plans.
Computerization of material planning results in saving in time and effort apart from
obtaining accurate functions.

Materials Budgeting:
Meaning:
Once the material requirements have been established and worked out, the Material
budget is prepared taking into account inventory on order and inventory in transit also
known as pipeline inventory.
A. The process of preparing material Budgets:
Required Material

Inventory norms
Target

Amount of material to
be purchased

Inventory Material on hand

Forecast of Prices and Rates

Purchase Budget or
Material Budget
Actual Purchase
Variance Report for
Control
Material Control

Meaning:-

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Material Management
Material control is the regulator of the function of organization relations to the
procurements storages and usage of material in such a way as to maintain on even flow of
production without excessive investment in material stock.

Definition:
The American production and inventory control society defines Material Control
as "The function of maintaining constantly available supply of raw materials Purchased
parts and supplies that are required for the manufacture of the product.

Stores and Inventory control:


This involves physical control preservation of stores minimization of Obsolescence
and damage through timely disposal and efficient handling. For Physical verification of
stocks and reconciling them with book figure.

A. Material control in Tata Steel limited:


The material control in Tata Steel limited was in 3 stages, they are as follows under:
I.

Purchase Material

II.

Receipt Material

III.

Issues Material

B. Objectives of Material Control


1. Ensure Continuity in Supply
2. Purchase Requisite Qty Of Material
3. Eliminate Wastage in Losses
4. Avoid Over Stacking
5. Avoid Under stocking
6. Purchase In Reasonable Price
7. Information about source of supply

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Material Management

C. Techniques of Material Control


1. ABC Analysis [Always Better Control]:
A ---------

High Value, Low Qty,

B --------

Medium Value, Medium Qty

C --------

Low Value, High Qty

2. EOQ: - Economic Order Quantity


EOQ: Total Cost= Actual cost + Carrying costing + Order costing
(The Total cost of materials consists of Actual Acquisition cost + carrying cost +Ordering
Cost.)
Carrying cost: It is the cost of holding the Materials in the stores

Ex: Cost of Storage Space


Cost of Bins Racks
Cost of the Marinating the materials to Maintain the Qty
Amount of interest payable on the money lacked up on the materials
Cost of spoilage in stores and handling
Cost of Obseleance same of the materials
Insurance cost
Clerical Cost
Ordering cost:-It is the cost of placing order for the purchase of Materials.

D. Essentials of Materials Control


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Material Management
There should be proper scheduling of materials.
A good method of classification and codification of material should be followed.
There should be proper inspection of materials when they are received by the receiving
department.
Standard forms for requisitions, order, and issue, transfer of material from one job to the
other and transfer of material from the job to the stores should be used.
The storage of materials should be well- planned to avoid losses from theft, Carelessness,
damage , deterioration , evaporation and pilferage,
A system of internal check should be introduced to ensure .that all transactions involving
materials are checked by properly authorized and independent persons.
Ordering quantity for each type of material should also be fixed to reduce the ordering
costs and. carrying costs of materials.
Adequate records to control materials during production should be maintained to ensure
that there is minimum possible wastage.

E. Advantages of Material Control


The advantages of material control are as under:
To effect purchases of materials of the right quantity consistent with standards prescribed
in respect of the finished product.
To process materials with acceptable commercial terms with a view to effecting
maximum economy in the cost of buying;
To make available on assured supply of materials, so as to keep the cycles of production
going without any interruption.
To ensure effective utilization of materials.
To prevent overstocking of materials and the consequent locking of working Capital.

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Material Management

CHAPTER - 02
COMPANY PROFILE
Conceptual Frame Work of Tata Steel Ltd-Wire Division

INTRODUCTION AND HISTORY OF TATA STEEL LIMITED


TATA STEEL LIMITED is the leader producer and exporter of high quality steel
wires. It is a B.I.S. & I.S.O. 9002 certified company. Asia's first and India's largest
integrated private sector steel company, Tata Steel in the new millennium aims to become
a supplier of choice by delighting its customers with services and products. The quest for
excellence at Tata Steel is not just a process, but also a way of life. The determination to
move up the value chain in processes, products and performance has resulted in Tata steel
being acknowledged for its excellence. The numerous awards conferred on Tata Steel
stand testimony to this.
The company was incorporated in the year 1958 as a private limited company for the
manufacture of wires and got into the business of making umbrella & rib wires. The plant
was set up at Borivali, Mumbai. The company went to public in 1961 and subsequently
took up manufacturing of many other wires, which were being imported at that time. The
company set up another wire plant at Tarapur in Maharashtra for production of Motor
Tyre Bead wire in 1976.
Company has five plants (T.W.P. - 1, T.W.P. - 2, S.S.P, W.R.M & DWP) at Tarapur,
Maharashtra and other plants at Navasari, Sisodra & Banglore, and Gujarat. Companys
corporate office is located at Borivali, Mumbai. In addition, there are regional sales
offices at Delhi, Chennai & Calcutta and sales offices at Ludhiana, Faridabad, Hyderabad
and Bangalore.

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Pioneers of TATA Group

Tata

steel

was

established

in

1907,

as Asia's first and Indias largest integrated private sector steel company. With its captive
iron ore and coal mines and one of the world's most modern steel making and finishing
facilities at Jamshedpur in eastern India, which includes a state of the art cold rolling mill
complex. Tata steel limited is among the lowest cost producer of steel in the world.
The 4 million tonne Jamshedpur plant, which produces both flat and long product, is
undergoing a million tonne capacity expansion to be completed by September 2005. The
company intends to raise its capacity to l5 million tonnes per annum by 2012 organic
growth and acquisition.
The Jamshedpur capacity will produce 74 million tonnes and the balance capacity will be
put up or acquired elsewhere in India and overseas.
Tata steel recently announced its first major overseas investments in NAT STEEL,
Singapore and CORUS in UK, which will give it a manufacturing foot print in six
countries in the Asia pacific region, Europe.
Tata steel is also exploring opportunities in the Ferro-chrome and Titanion business in the
South Africa and the southern Indian state of Tamilnadu and other India's respectively.
Tata steel's relentless guest for excellence through initiatives like ASPIRE, which
combines TPM, Six sigma, Total operational performance, suggestion management and
quality circles, has reaped rich benefits.
The company has been conferred the Prime Minister Trophy for the best integrated steel
plant five times from the Indian Ministry of steel. It was the first Tata Company to win
the JRD quality value award, categorizing its operation as "World class" under the Tata
business Excellence model. It has been ranked among the top four world class steel
company lies by world steel dynamics, USA, for the past 4 years.

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Material Management
It also awarded Asia's most admired knowledge enterprise award -2003 by Teleos, an
independent knowledge management company of South Korea.
LOCATION:
The main head office was at Mumbai, that is:

The register address was as follows:


Bombay house, 24 Homi mody Street
Fort Mumbai - 400001,
Maharashtra, India

The Tata Steel limited [wire division] is situated in


Plot no 28/C KIADB Industrial area,
Doddaballapura, 561203
Bangalore rural district.

The premises have got natural control with effluent treatment and disposal of effluents
conforming to the standards specified by pollution board.

ORGANIZATIONAL STRUCTURE OF THE TATA STEEL


LIMTTED [WIRE DIVISION]:
The organization gives the brief description of various types of management. It starts
from executive in charge he control all over the management. After that the work is
divided between head like project management! Supply chain etc. then chief under him
the work is business development operation & maintenance etc. under president Tisco
mazdoor union, secretaries under TISCO mazdoor union. Like this way the management
is divided into top level.

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HEAD OF EPA

Sr. Mgr. OperationsMr Sanjeev Kumar Singh

Manager Maintenance

Manager Production

General Manager

Purchase & Store

Dispatch Officer

Maintenance Officer

Accts Officer

Manager
HR/Admin

Assistant

Fitters/Electricians/Helper
Shift Officer

Manager
Operations

Assistant

Assistant Officer/Staff

Operators/Fitters/Electrician
s

Assistant Officer/Staff

Chemist (QA)
Shiv Kumar C H

4.3OBJECTIVES OF THE TATA STETL LIMITED- WIRE DIVISION


The objectives of the Tata Steel limited are as follows: Monthly production -1038 MT.

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Material Management
First compliance -88%.
Gross yield -97.15%.
Cost (plant cost) - 11,265RS/ton.
OEE of MTB LINE -75 %
MAT Saving -1480 Lakh
LTIF -0
Severity index -2.50

PRODUCTION
ABP Apr- May- Jun- Jul

Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar-

FY12 14

14

Grade

FY11

MTB

544

665

544 508

572 562 491

516 371 537 573 553 557 503

6287

HB

153

175

196 210

192 278 180

159 235 153 146 181 163 145

2239

HCD

21.5

30

28

17

37

321

RSW

89

59

103 120

102 115 192

138 158 144 139 167 93

1470

CRIMP 55

109

101 38

63

49

18

540

Total

1038 944 907

863

14

31

14

-14

15
34

16
57

957 1004 936

14

14

30
47

14

32
32

14

34
32

15

33
38

15

49
31

15

878 842 898 924 972 893 703

Process flow- Operations

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Total

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Material Management

GENERAL INFORMATION ABOUT TATA STEEL LIMITED [WIRE DIVISI0N]:


NAME OF THE COMPANY

TATA STEEL LIMITED


[WIRE DIVISION]

LOCATION OR ADDRESS

PLOT NO.28/C, KIADB


INDUSTRTAL ESTATE,
DODDABALLAPUR,
BANGALORE RURAL DITRICT

COMPANY OWNERSHIP

LIMITED COMPANY

YEAR OF ESTABLISHED

2005

PRODUCTS MANUFATURED

MTB Wire -665 MT/ Per Month

AND PRODUCTION

SRING STEEL -168 MT/Per Month

CAPACITY

HC SPOKE -30 MT/Per Month


HB -175 MT/Per Month

NO. OF EMPLOYEES

150

COMPANY CERTIFICATION

ISO-TS 9001:2000

OPERATIONS DURING YEAR


A.

WORKING DAYS PER YEAR

353 DAYS

B.

WORKTING PER WEEK

7 DAYS

C.

NUMBER OF WORKING SHIFTS

THREE SHIFTS ( Round the Clock )

KSPCB APPROVALS

CONSENT FOR EXPANSION


UNDER AIR ACT

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CORE VALUES OF TATA STEEL LIMITED [WIRE DIVISION]

Trustees
Trustees
hip
hip

Excellen
Excellen
ce
ce

Integrity
Integrity

Core
Value
s
Respect
Respect
the
the
Indivigu
Indivigu
al
al

Credibili
Credibili
ty
ty

ENERGY POLICY OF TATA STEEL LIMITED [WIRE DIVISION]


Tata steel real firms its commitment to be a part of a national mission for mitigating
climate change issues by efficient use of energy and shall endeavors to Comply with
national and international regulations
Adopt the best available technology to enhance energy efficiency
Implement world class operating practices so as to conserve energy and natural resources
Conduct regular energy audit for continued improvement.
Promote energy conservation through mass awareness.
QUALITY POLTCY
The Quality Policy of the Tata Steel limited [wire division] was:
Consistent with the group purpose Tata Steel constantly strives to improve the quality of
life of the communities it serves through excellence in all facets of its activities.
We are committed to create value for all our customers and key stakeholders by
continually standardizing, improving and innovating our offerings, systems and process
involving all our employees.

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Material Management
This policy shall form the basis of establishing and reviewing the business objectives and
strategies and shall be communicated across the organization. The policy will be
reviewed to align with business direction and to comply with all the requirements of
TQM Principles.
SAFETY PRINCIPLES & OCCUPATIONAL HEALTH POLICY
The safety principle of Tata Steel limited [wire division] was:
Tata Steels safety and occupational health responsibilities are driven by our commitment
to ensure zero harm to people we work with and society at large and are integral to the
way we do business.
Safety Principles

Safety is a line management responsibility.

All injuries can be prevented.

Felt concern and care for the employee on 24 Hours Safety shall be demonstrated by
leaders.

Employees shall be trained to work safety.

Working safety shall be condition of employment.

Every job shall be assessed for the risk involved and shall be carried out as per authorized
procedures/checklist/necessary work permit and using necessary personal protective
equipment.
We are committed to continual improvement in our S & OH performance.

We shall set obejective-targets,develop,implement and maintain management standards


and systems,and go beyond compliance of the relevant industry standards,legal and other
Requirements.

ENVIRONMENTAL POLICY TATA STEEL LTD [WIRE DIVISION]


The Environmental Policy of Tata Steel limited [wire division] was:
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Material Management
Tata Steels environmental responsibilities are driven by our commitment to preserve the
environment and are integral to the way we do business.
1. We are committed to deal proactively with climate change issue by efficient use of
natural resources & energy; reducing and preventing pollution: promoting waste
avoidance and recycling measures: and product stewardship.

We shall identify, assess and manage our environment impact

We shall regularly monitor, review and report publicly our environment performance.

We shall develop & rehabilitate abandoned sites through afforestation and landscaping
and shall protect and preserve the biodiversity in the areas of our operations.

We shall enhance awareness, skill and competence of our employees and contractors so
as to enable them to demonstrate their involvement, responsibility and accountability for
sound environment performance

2. We are committed to continual improvement in our environmental performance.

We shall set objective-targets, develop, implement and maintain management standards


and systems, and go beyond compliance of the relevant industry standards, legal and
other requirements

We will truly succeed when we sustain our environmental achievement and are valued by
the communities in which we work.

MISSION AND VISION OF TATA STEEL LIMITED [WIRE DIVISION]


The mission and vision of Tata Steel limited was as follows: We aspire to be the global steel industry benchmark for value creation and corporate
citizenship.
We make the difference through:

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Material Management

OUR PEOPLE, by fostering team work, nurturing talent, enhancing leadership capability
and acting with pace, pride and passion

OUR OFFER by becomes the supplier of choice delivering premium products and
services and creative value with our customer.

OUR INNOVATIVE APPROACH, by developing leading edge solutions in technology,


process and products.

OUR CONDUCT, by providing a safe working, place respecting the environment, caring
for our communities and demonstrating high ethical standards.

ASPIRATION STATEMENT OF TATA STEEL LIMITED : [WIRE DIVISION] :


The Aspiration statement of Tata Steel limited [wire division] was:
Sustain Leadership position
in Steel Wires in India
GOAL OF'TATA STEEL [WIRE DIVISIONI LIMITED:
The main goal of Tata steel limited was:

Value Creation: consistently achieve ROIC of 22%

Safety: Reduce LTIF to 0.1

Environment: Reduce CO2 emissions to 380 kg/ ton of finished wire

Employer of choice: Across all industries top quartile

CORE COMPETANCY OF TATA STEEL LIMITED [WIRE DIVISION] :


The core competency of Tata Steel Limited was:Ability to Enhance

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Trusted Customer Relationship

5 Cs of BRAND PROMISE OF THE TATA STEEL LTD [WIRE DIVISION]


The 5 Cs Brand Promise of the Tata Steel Limited was:-

SWOT ANALYSIS OF THE TATA STEEL LIMITED [ WIRE DIVISION ]

The term SWOT stands for Strength, weakness, opportunity, and Threats". The SWOT
analysis of Tata Steel limited [wire division] was as follows:

STRENGTH:
Raw material
IT in integration

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Material Management
HR focus
Market dominance
WEAKNESS:
Slow pace of decision with respect to investment

OPPORTUNITY:
New products like tyrecord.
Low per capital consumption steel in India as compare other developed nations.

THREAT:
Small unorganized players.

D.W.P: AN OVERVIEW
TYPES OF WIRES

APPLICATIONS

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CUSTOMERS

Material Management
M.T.B.

MRF

(Motor Tyre Bead wire)

CEAT

APPOLO TYRES

JK TYRES

TVS
Figure1.3: Motor Tyre Section

GOOD YEAR

The company has a comprehensive range of products and it covers almost all types of
steel wires in the size range of 0.20mm to 27.00mm in diameter.

The Total production per year for D.W.P. was 10857 MT for the year 2013 2014.
PRODUCT PROFILE:
The products produced by the Tata Steel Limited [Wire division] are:

Motor Tire Bead Wire/ MTB wire


Spring Steel/SS Wire
HB wire/Hard and bright wire

WIRES PRODUCTS AND APPLICATIONS


MOTOR TYRE BEAD (MTB) WIRE
Used in motor tyres for providing necessary strength and grip onto the tyres rim
SPRING STEEL WIRE
Used for manufacturing springs for various applications, especially shock absorbers in twowheelers

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Material Management

Spring Steel Wire Motor Cycle

MOTOR TYRE BEAD WIRE:


Tyre bead wire is a copper/ bronze coated wire which is used for the reinforcement of
virtually all types of pneumatic tyres such as trucks, buses, cars, motorcycles etc. The
main function of the tyre bead wire is to act as reinforcement and it helps to get a proper
grip of the tyre on the rim. The type of tyre and structure of bead rings used, determine
the size of bead wire.

Properties of M.T.B:
1. Uniform winding.
2. Uniform surface finish.
3. Adhesion characteristic of wire to rubber.
4. Close combination of high strength & ductility.

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Material Management
M.T.B. MANUFACTURING PROCESS

Figure1.6: M.T.B. - Manufacturing Process

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Material Management

Figure1.7: Manufacturing Process Flow Chart


One of the major product lines at Bangalore wire plant is Cupper coated high tensile steel
wire used in automobile tyres. Bead wire typically constitutes 5% of the tyre weight
(approx. 1.6kg in a car tyre & 5.6kg in a truck tyre). Tyre bead wires are used for the
manufacture of virtually all types of pneumatics tyres such as Trucks, Buses, Cars, Jeeps,
Motorcycles, Scooters, etc. The main function of tyre bead wire is to act as reinforcement
and help to get a proper grip of tyre on the rim.
The size of the wire varies depending on the application. Tata steel ltd. is in a position to
meet the entire size range of wire from 0.78mm to 1.16mm required by the tyre
industries.
The manufacture of tyre bead wire starts with the selection of wire rods free from piping
segregation and other defects for the wire drawing. Different types of packing are given
as per specific requirement of domestic and international markets.

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Material Management
The approximately linear density that is weight per unit length of the wire is 5.5gm/m.
The breaking load necessary to the nature of the wire specimen is not less than 132kg.
The test is conducted on a tensile testing machine at a specified speed.
PRE DRAWING

Figure1.8: Pre-Drawing M/C Pay Off


The requirement of finish wire size diameter of different customers is normally 0.965mm.
The raw material available with us after pickling is of size 5.5mm in diameter. But we
cannot draw wire directly from 5.5mm to 0.965mm because during drawing operation
high stresses are induced in the wire which leads to wire breakage. Hence the drawing is
performed in two stages with intermediate patenting process to relieve those stresses.
In Doddaballapura Wire Plant there are One m/cs 701 in the pre drawing section to
reduce the wire diameter from 5.5mm to an intermediate diameter of 3.1mm in 7 passes.
The reduction through the dies should not be more than 18 to 24%. The wire coils after
pickling are loaded onto the pay offs of 701 m/cs from where they are carried onto the
drums.
There are six drums and six dies in a row while the final die is R.D.H. (Rotary Drum
Horizontal). The drum or block is generally used for cooling the wire as it gets heated up

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Material Management
during the drawing operation. The drum is given internal cooling with the help of water
jet. At the base, the drum is provided with a special profile, which avoids over lapping of
wire during the operation. But sometimes due to grove formation overlapping still occurs.
Hence the drum is made such that the drum diameter gets reduced as we move upwards,
to avoid overlapping as the wires slip on the drum. The max speed of the drum in 701 m/c
is 7.5 m/s.
PATENTING

Figure1.9: Patenting Furnace


The cages filled with wires from Pre - drawing m/cs are loaded onto the pay offs with
the help of overhead cranes from where the wires start uncoiling & are first heated to a
temperature just above the critical temperature i.e. 1080C in the furnace and then
quenched in the lead bath maintained in the temperature range of 595 to 615C. The
furnace is divided into 4 zones & the lead bath into two zones. The lead is in the form of
liquid and can easily form its oxide i.e. Lead oxide (Pb2O3), which is red in colour, so to
avoid its formation the surface of lead is covered with coke.

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Material Management
Now the wires are quenched in cold water to remove the residual lead. The wires are next
passed through Hydrochloric acid (HCL) with concentration 170 to 195gms/lit, which
will remove oxide layers and scales, if any present, without attaching to the material
surface. Then wires are washed with high pressurized water to remove any excessive acid
carried with the wires followed by passing them in hot water tank maintained at 75 to
85C.
Next wires are passed through the borax tank maintained at min 95C & concentration
175 to 205gms/lit which acts as a lubricant carrier. After borax coating the wires are
passed through the drying oven with temp of about 200 to 250C to get the wires free
from water particles. The finished wires are then taken to AOB take - up units where they
are filled in cages.
FINISH WIRE DRAWING

Figure 2.0: Finish Wire Drawing M/C


The cages loaded with the wires of diameters 2.5mm to 3.3mm from AOB take up - units
are transferred for further finish wire drawing operation to the 12wire drawing m/cs
wherein the size of wires is reduced to the range of 1.14mm to 0.78mm in diameter
depending upon the requirement of the customers. The cast required is of 600mm
whereas rise & helix should be close to zero.
In D.W.P. there are four finish wires drawing m/cs namely 711 to 714 consisting of ten
dies and ten drums or blocks. The blocks are divided into two parts the upper block and
the lower block. The lower deck rotates in anticlockwise direction winding the wire
which is coming from the die and subsequently transfers it to the upper deck. The decks
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Material Management
should not be eccentric in motion. Soap powder used for lubrication helps in easy
drawing of the wires & is generally Na and Ca based. Wire must be fully submerged in
the soap powder & the powder should be mixed on a regular basis to avoid jamming. The
powder should also be free from contaminants for effective results.
The main difference between Pre - drawing and finish wire drawing is that the final
finished wire is collected in spools rather than in the cages. Weight of spools is Max
470kg for 711 to 714 m/cs & 470kg.Winding (max) speed of m/c does vary from 18m/s
to 20m/s.

PLATING LINE

Figure 2.1: Copper Plating


In this process stress is relieved and cooper coating is provided on the wires according to
the requirement. The weight of copper coating on the wire is 0.45 to 0.55gms/kg of wire.
The whole line has got many intermediate vipers (air, rubber, bristle, cotton, etc.) &
pressurized rinsing tanks for cleaning purposes. The wires are first unwound and passed
to the molten lead bath for relieving internal stresses in the wire and to burn the lubricant
coating on the wire. The temperature of the lead bath is maintained in the range of 400 to
450C. After passing through the lead bath the wires are passed through the alkaline bath
to clean the wires from residual lead. Wires are then passed through HCl tank for better
cleaning.

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Material Management
These wires are then passed through the Cooper Sulphate (CuSO4) tanks, which are
maintained at selected concentration as per the requirement of the coating on wires. The
wires are then cleaned in cold water followed by in hot water. The hot water is having
temperature of about 95C. Then the wires are dried in drying oven maintained at a
temperature of 180 to 200C to get the wires free from water particles. The dried wire is
then given a thin coating of Cumbers and Resin to protect its surface from corrosion.

REWINDING

Figure 2.2: Rewinding M/C


The main purpose of the rewinding section is to give the wires straight killing which is
the requirement of the customers. The rewinding process is done in the dehumidified area
only; so as to protect the material from dampness and also this area restricts formation of
copper oxide on the material. The take - up units of rewinding section can take 34 wires
at a time after which the loaded spools from it are taken to the rewinding m/c for straight
killing purpose. In these m/cs the wire is passed through a set of horizontal and vertical
killing rollers to make the wires straight, as it is the requirement of the customers. After
killing process of the wires, they are passed for winding them on the collapsible spools
for further packing.
During the operation the tension of the wire is maintained constant with the help of the
dancer arm. The tension is in between 3kgs to 5kgs.The wire gets wound on the spool

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Material Management
with the help of pneumatic arrangement. If there is breakage of wire due to any reason,
then with the help of brake both the spools are stopped automatically. The speed of the
rewinding m/c is 12m/sec.

PACKING, STORAGE & DISPATCH

Figure 2.3: Storage & Dispatch Section

Before passing any finished product for the customer; inspection is done by Quality
Control Department & only after this inspection step procedure of packing is started. The
weight of the spools with coil loaded on it is about 0.5MT. Then on the spool stamping
station the spool no, weight, etc. is labeled onto it. Then they are taken to the tilting
platform. Here the flange of the spool is removed with the help of pneumatic spanner to
save the time of packing.
A wooden pallet is placed on the conveyer with a corrugated sheet and plastic bags. The
coils are placed into the plastic bags by a lifter. The second coil is placed on the first coil
with a wax paper in between them to avoid rubbing. This wax paper is used for corrosion
resistance. Again the wax paper is placed on the upper coil and then it is packed with the
cello tape.

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Material Management
A small bag of silica gel is placed inside the coils to absorb the moisture. The CRCA
sheet is rounded around the coils and it is strapped at two points. A plywood top is placed
on the coils and then it is strapped at three points. The wooden corners are fixed to the
pallets restricting any movement of the coils. Finally it is labelled with coil no, size,
weight and customers name. Then they are passed to dispatch section and then
transported.
INTRODUCTION:
Tata Steel Limited was formerly TISCO Limited and IRON and STEEL Company
Limited is a multinational steel company head quartered in Mumbai, Indian and
subsidiary of TATA Group. It is the 10th it is the largest steel producing .in the world,
with an annual crude steel capacity of 23.5 million tonnes, and the largest private-sector
steel company in India measured by domestic production.
Tata Steel is also India's second largest and second-most profitable, private sector
Company, with consolidated revenues of $46 billion and net profit of over $3.9 billion in
the year ended March 31, 2014. Tata Steel is the eighth most valuable Indian brand
according to an annual survey conducted by Brand Finance and the Economic Times in
2012. It is currently ranked 410th in the Fortune Global 500. It has also been listed as
"World's most ethical companies, by Forbes.
Tata Steel's largest plant is located in Jamshedpur, Jharkhand, with it is recent
acquisitions, and the company has become a multinational with operations in various
countries. The registered office of Tata Steel is in Mumbai.
The company was also recognized as the world's best steel producer by World Steel
Dynamics in 2005. The company is listed on Bombay Stock Exchange and National
Stock Exchange of India, and employs about 80,000 people.
In August 2007 Tata Steel won the bid to acquire the UK-based steel maker Corus in
what was, to date, the largest international acquisition by an Indian company. It made the
Tata Group the world's fifth largest steel maker, and catapulted them to the global league.

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Material Management
HISTORY OF TATA STEEL LIMITED:
TISCO was established by JAMSETJI TATA in year 1907.In year of 1939, it had largest
steel plant in the British Empire. A modernization and expansion program was launched
in year 1951. Later, the program was upgraded to 2 MTPA project in 1990, it started
expansion plan and established it is subsidiary Tata Inc. in New York.
"The company changed its name TISCO to TATA STEEL in year 2005.
Since its inception, 1958 as Special Steels, to the establishment of the Company as a
subsidiary of Tata Steel, to the formation of the journey of Tata Steel Wire Division has
been replete with innovations recognitions and break-through achievements.
Milestones achieved by the Company since incorporation is mentioned below;
1910 Tata Steel obtains its first colliery.
1912
i.

First ingot rolls out.

ii.

Bar mills commence operations.

iii.

Introduction of 8 hour working day.


1938
Introduction of electric process for making steel which was employed for production of
high grade iron and steel casting.
1972-1973
Coal fine washeries were set up for the first time in Jamadoba and West Bokaro.
1980-1996
Modernisation programme of the Jamshedpur steel works was initiated in four phases
during this period.
2000

i.

Cold rolling mill set up at Jamshedpur. The mill was completed in a record time of 26
months.
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Material Management
ii.

Creation of B2B portal called metaljunction.com in collaboration with SAIL and Kalyani
Steel.

2001
World Steel Dynamics ranks Tata Steel as India's only World-class steel maker.
2003
i.

The Company launches its first branded cold rolled steel product called Tata Steelium

ii.

The Company celebrates 75 years of industrial harmony.


2004

i.

The Company's biggest blast furnace completes production of 14million tones of hot
metal which is the highest production achieved by a blast furnace in India in its first
campaign.

ii.

The Company files a corporate sustainability report where the Company was rated as
India's Top Reporter by United Nations Environment program and Standard and Poor's.
2005

i.

The Company acquires NatSteel Asia in Singapore.

ii.

The company launches steel Junction which is India's first organized retail store for steel
products.

iii.

The Company is ranked as the World's Best Steel Maker by World Steel Dynamics.

2006-2007
i.

The Company's steel works at Jamshedpur crosses 5 million tonne mark in crude. Steel
production.

ii.

The Company is ranked again as the worlds best steel maker by world steel Dynamics

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Material Management
iii.

The Company acquires Corus, which makes the company the sixth largest steel maker in
terms actual crude steel production.
2008-2009

i.

1.8 Mtpa capacity expansion at Jamshedpur becomes operational, bringing total crude
steel production capacity to 6.8 Mtpa.

ii.

Prime Minister Dr. Man Mohan Singh unveiled the centenary postage stamp to
commemorate the Companys centenary year.

iii.

The company was conferred the Best Establishment Award by the President of India.

iv.

The Company was awarded the Demining Application Prize

v.

The Company was awarded the TERI Corporate Award of. It is HIV / AIDS initiative...

2009-2010
i.

The Company issued Global Depository Receipts worth US$ 500 million.

ii.

The Company was awarded the CSR Excellence Award 2010 by the Associated
Chambers of Commerce and Industry.

iii.

The Company was awarded the FE-EVI Green Business Leadership Award in the iron
and steel category.

iv.

The Company was awarded Asia's Best Employer Brand Awards, 2010 for talent
management, Best human resource strategy in line with business, excellence in training,
CEO with human resource orientation and human resource leadership.

v.

The Company was awarded the Rashtriya Khel Protsahan Puruskar award for outstanding
contribution in the field of sports in the category of 'Financial Support for Sports
Excellence'.
Finally, Tata Steel's Global Wires Business has manufacturing facilities spread across the
geographies of India, China, Thailand and Sri Lanka- The products, are manufactured in
fully integrated manufacturing cycles, from sourcing of raw materials to in-house steel
making and wire rod rolling facilities. All the units of operation adhere to strict quality
parameters and are ISO certified.

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Material Management
In 2009-2010, the Wire Division in India restructured itself by relocating its operations
from Mumbai to Tarapur and to Indian Steel & Wire products Co. Jamshedpur. The
Division was the first to brand its galvanized wires for the retail segment under the TATA
Wiron brand.
The Wire Division has been the sole supplier of pre-stressed concrete strands used in the
construction of precast segments for the 4.7 Kms, 8-lane- catrle-stayed Bandra-Worli Sea
Link at Mumbai, India.

AUDITOR OF TATA STEEL LIMITED:


The auditor of Tata steel Limited is "DION GLOBAL SOLUTION LIMITED.
LOCATION OF'TATA STEEL LIMITED:
The headquarters or main head office is located in Mumbai.
The register address was as follows:
Bombay house, 24 Homi Mody Street, Fort,
Mumbai - 400001, Maharashtra -India
Phone Num-66658282,
Fax Numb: 66657724, 66657725.
Email: cosec@tatasteel.com
PRODUCTS OF TATA STEEL LTMITED:
The products of the Tata steel are as follows:
Aluminium ingots
Asbestos Tapes.
Carbon Electrode paste.
Cast & Forged machining parts.
Ceramic plates,

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Material Management
Coating Machines.
Engraving Machines.
Magnesia Carbon
Rare Earth Magnet.
Stainless Steel Wire.
Straightening Machines.
Zinc ingots.
Other Copper.
Other ingots.
Other Square Billets.
TOP BRANDS OF TATA STEEL LIMITED:
The Tata Steel Group's Brand building endeavours have always been directed at building
assurance, reliability and superior product quality in segment. Outstanding performance
by the Company's different divisions have surpassed their own brand standards and
created higher quality parameters for each other.
In an attempt to 'discommodities' steel, the Company has introduced several branded steel
products to meet growing market demands. Some of the Brands produced and marketed
by the different Divisions and Business Units of Tata Steel are:
GalvanorTM
Tata Agrico
Tata Bearings
Tata Pipes
Tata Shaktee
Tata Steelium

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Material Management
Tata Structura
Tata Tiscon
Tata Wiron

OVERSEAS ACQUISITION OF TATA STEEL LIMITED:


Corus

On 20 October 2006, TISCO signed a deal with Anglo-Dutch company, Corus

On 19 November 2006, the Brazilian steel company Companhia Siderurgica Nacional


(CSN) launched a counter offer for Corus at 475 pence per share, valuing it at 4.9 billion

On 11 December 2006, Tata pre-emptively upped the offer to 500 pence, which was
within hours trumped by CSN's offer of 515 pence per share, valuing the deal at 4.9
billion. The Corus board promptly recommended both the revised offers to its
shareholders.
OTHER ACQUSITION:

In August 2004, Tata Steel entered into definitive agreements with Singapore based
NatSteel Ltd to acquire its steel business for Singapore. $486.4 million (approximately Rs
1,313 core) in an all cash transaction.

In 2005, Tata Steel acquired 40% Stake in Millennium Steel in Thailand for $130 million
(approx. Rs 600 core)

In 2007 Tata Steel through its wholly owned Singapore subsidiary, NatSteel Asia Pvt Ltd
acquired controlling stake in two rolling mills: SSE Steel Ltd, Vinau steel Ltd located in
Vietnam.
COMPETITORS OF TATA STEEL LIMITED

Arcelor Mittal,
Essar steel

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Material Management
JSW steel
SAIL VIZAG steel etc.
Jindal steel.
TMT steel.
CONTROVERSIS:
The company is facing increasing criticism. That the drive for growth and profits is
completely overshadowing its once famed philanthropy, and causing lasting social and
environmental damage at various locations. In response, Tata cites its programs for
environment and resource conservation, including reduction in greenhouse emission, raw
materials and water consumption. The company has increased waste re-use and recycling, and reclaims land at its captive mines and collieries through forestation. Tata
Steel's chief environment and occupational health, says, "Our capital investment in
pollution-abatement solutions was in the Vicinity of 4 billion in 2003-04"
TRADE MARKS OF TATA STEEL LTMITED:

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Material Management

CAPTUTION OF TATA STEEL LIMITED:


Some of the Capitation of Tata steel limited and its brands Capitation are as follows:
BRAND CAPTUTION

CAPTUTION

LOGO OF COMPANY

LEADERSHIP WITH TRUST


VALUE STRONGER THAN STEEL
BUILDING TRUST BINDING RELATIONS

TATA AGRTGO

BOND WITH TRUST

TATA PIPES

FOR NOW, FOR YEARS

TATA SHAKTEE

LASTS LONGEST

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Material Management
TATA TISCON

TRUSTEED STEEL FOR YOUR HOME

TATA WIRON

BANNDHE RISHTON KE TAAR

ACHIEVEMENTS AND AWARDS OF TATA STEEL LIMITED:


Some of the key achievements/awards received in Financial Year 2010 are as follows:
1. The Company was awarded the 'Economic Times Company of the Year Award'.
2. The Company was conferred the Indian Most Admired Knowledge Enterprise award for
sustained excellence in field of knowledge management.
3. In 2010, one of the Company's employees was awarded the Prime Minister's Shram
awards for years 2005 to 2007.
4. Tubes Division of the Company won the 16th JRD QV Award.
5. Corporate Social Responsibility Excellence Award to the Company by Associated
Chambers of Commerce & Industry of India.
GENERAL INFORMATION ABOUT TATA STEEL LIMITED:
LOGO

TATA STEEL

Type

Public

Traded as

BSE: 500470
BSE SENSEX Constituent

Industry

Steel

Founded

1907

Founder (S)

Dorabji Tata

Head Quarters

Mumbai, Maharashtra State India

Area served

World wide

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Material Management
Key people

B Muthuraman
Vice Chairman
Hermant M. Nerurkar (MD)

Products

Steel, Flat Steel Products, Long steel

Products, Wire Products, Plates


Revenue

Rs.1,810,681,627. (2015)

Profit

Rs.391,520,693. (2015)

Total Assets

Rs.793, 248,19. (2015)

Total equity

709,741,693 (2015)

Employees

81,251 (2015)

Parent Tata Group


Subsidiaries
Website

Tata Steel Europe


www.tatasteel.com

CHAPTER -4
RESEARCH DESIGN
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Material Management

4.1 Title Of The Study :


A Study on Material management in Tata Steel Ltd-Wire Division.
4.2 Introductions to the study:The investment in Material is very high it most of the undertaking engaged
in manufacturing, whole and retail trade. The amount of investment sometime
more in Material than the other assets. In India, a study of 29 major industries
revealed that average cost of material is 68percentage and cost of labor and
overheads is 34percentage into rupee. About 90percentage as working capital is
invested in inventories. It is necessary for every management to give proper
attention to Material management. A proper planning of purchasing, holding,
storing and accounting should form a part of Material management.
A proper Material control not only helps in solving the accurate problem
of liquidity that also increase profits and causes substantial reduction in working
capital of the concern. If Material policies actively and generally formulated it
will speed up maximum return on investment and ultimately results in
maximization of owners wealth.
4.3

Statement of problem:Material consist of 60percentage of working capital of a business concern


the success of industry, which caries this, could be achieved by observing or
following good Material management system in this context the study initiated in
med farm to out their existing Material system of previous 4 years and fine out the
problem it any and performance of the company with help to turn over ratio. In
this context the study initiated in med farm, to find out the existing Material
system.

4.4

Objective of the study:1.

To study the Material management system in the company.

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Material Management
4.

To analyses the Material management performance through turn over


ratio.

3.

To make suggestions if there are any problems with regard to Material


management.

4.5

4.

To identify the critical arias of Material management in the company.

5.

To analyses the defects in Material management.

6.

To identify the defects in Material management.

7.

To know the Material techniques in Material management.

8.

To introduce the modern methods in Material management.

9.

To study the Material management system in the company.

10.

To identify the modern Material system.

11.

To identify the existing Material system.

Methodologies:Main purpose of research methodology is to provide the information that


will facilitate the identification of the problem and to assist to the organization in
carrying out best possible decision.
The articles obtained from magazines like Management Review, The Smart
Manager, books like strategic Management contributed to the information
required for the completion of the dissertation.

4.6

Sampling design:For the purpose of the study being comprehensives study of Material
control to metaphor is mainly uses reference material and casual interview as it
main source of information.

4.7

Data analysis:For the purpose of this project both primary and secondary data being use.

Primary data:

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Material Management
Face to face Material
Observation
Secondary data:

4.8

1.

Official records

2.

Documents and employees handbooks

3.

Manuals and files of the company

4.

company magazines and newspapers

Limitation of the study:Study is limited to period of four years (based on the available data in the

period)

The research work was confined only desk work.

The study considers only raw material, work in progress, and finished
goods.
4.9

Scope of the study:The study is helps to analyses the Material managements in Tata Steel LtdWire Division and the main objective is to reallocate the any defects made by the
firm helps to utilization.
Plan of analysis:
In the study helps to future planning of the management.

4.10

Reference period.
The reference period is to the study one month.

4.12 Chapter Scheme


Chapter 1: introduction
Chapter 2: company profile

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Material Management
Chapter 3: Review Literature
Chapter 4: research design
Chapter 5: data analysis and interpretation
Chapter 6: summary of findings
Chapter 7: Suggestions and conclusion
Appendices and annexure
Bibliography

CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
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Material Management
INTRODUCTION:Analysis and Interpretation is the process of identifying strength and weakness of a firm
by properly establishing relationship between two items. It is useful for decision making
and there are number of methods & techniques which are generally used in analysis of
financial services.
The analysis and interpretation of data is the most skilled task in the research process.

Meaning of Analysis:Analysis is the process by which the whole body of gathered data facts, figures and ideas
is converted into meaningful and useable information. The data is placed on its
appropriate setting and consistent relationship drawing general inferences.
Following is the procedure involved in the integrated operations of analysis of data:
1. Classification of data.
2. Tabulation of data.
3. Statistical analysis of data.

Meaning of Interpretation:Interpretation refers to the relationship with the collected data. Its the mechanism
through which the factor that appears to explain what has been observed by researcher
during the course of a research.

TABLE NO: 5.1


TABLE SHOWING INVENTORY TO NET SALES
INVENTORY TO NET SALES =

Page 56

Inventory
100
Net Sales

Material Management
Rs. In Lakhs

Y
EAR

INVENTORY
(RS)

NET SALES

PERCENTAGE
(%)

2011-2012

2,460.77

5,482.11

44.89%

2012-2013

2,673.80

5,767.64

46.36%

2013-2014

3,191.29

6,103.82

52.28%

2014-2015

3,298.71

6,275.52

52.56%

ANALYSIS:
From the above table it can be analyzed that there is a increasing level in
the rate of inventory to net sales is 44.895% during the year 2011-2012. Where as
there it has been increased to 46.36% in the year 2012-2013. In the year 20132014 it increased to 52.28%, however there is increase in the year 2014-2015 with
the52.56%.

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Material Management

GRAPH NO : 5.1
GRAPH SHOWING INVENTORY TO NET SALES
54.00%
52.28%

52.56%

2013-2014

2014-2015

52.00%
50.00%
48.00%
46.36%
46.00%

44.89%

44.00%
42.00%
40.00%
2011-2012

2012-2013

INTERPRETATION:
From the above graph it can be inferred that due to the increase in the demand for Wire
products their has been slight increase in the level of inventory to sales in the year 20142015 when compared to previous years.

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Material Management
TABLE NO: 5.2
TABLE SHOWING INVENTORY TO CURRENT ASSETS RATIO
Inventory
100
INVENTORY RATIO =
Current Asset

Rs. in Lakhs

YEAR

INVENTORY
(Rs)

CURRENT
ASSET(RS)

PERCENTAGE
(%)

2011-2012

2460.77

6292.29

39.11

2012-2013

2673.8

12133.27

22.03

2013-2014

3191.29

11828.45

26.97

2014-2015

3298.71

11991.62

27.5

ANALYSIS:From the above table we can observe that in the year 2012-2013 there is a
increase in the current asset value when compare to other years , but in the other years
also there is a increase in the current asset and inventory.

GRAPH NO : 5.2
GRAPH SHOWING INVENTORY TO CURRENT ASSETS RATIO
Page 59

Material Management
51

50.47

50
49.18
49
48

47.43
46.92

47
46
45
2011-2012

2012-2013

2013-2014

2014-2015

INTERPRETATION:From the above graph it can be inferred that there is a more increase in the value of raw
materials due to more purchases during the year 2014-2015. So why there is more
increase in the values of current assets and inventory during the year 2014-2015 when
compared to other years.

TABLE NO:5.3
TABLE SHOWING INVENTORY TO TOTAL ASSETS RATIO

Page 60

Material Management
Inventory

INVENTORY TO TOTAL ASSETS RATIO = Total Inventory 100


Rs.in Lakhs

YEAR

INVENTORY(
RS)

TOTAL
ASSETS(RS)

PERCENTAGE(
%)

2011-2012

2460.77

5003

49.18

2012-2013

2673.8

5636.96

47.43

2013-2014

3191.29

6322.86

50.47

2014-2015

3298.71

7029.85

46.92

ANALYSIS:The above table shows that there is increase in the total assets due to increase
in the current assets. In the year 2011-2012 the total assets were less when
compared to 2014-2015, and the percentage has been decreased in the year 20142015.

GRAPH NO:5.3
GRAPH SHOWING INVENTORY TO TOTAL ASSETS RATIO

Page 61

Material Management
51

50.47

50
49.18
49
48

47.43
46.92

47
46
45
2011-2012

2012-2013

2013-2014

2014-2015

INTERPRETATION:From the above graph it can be inferred that there is increase in both
inventory and the total assets during the year 2014-2015 and percentage wise it is
decreased when compared to previous years, because there is increase in both the
inventory and the total assets during the year 2014-2015.

TABLE NO:5.4
TABLE SHOWING INVENTORY TO WORKING CAPITAL

Page 62

Material Management
Inventory

INVENTORY TO WORKING CAPITAL RATIO = Working Capital 100


Rs. In Lakhs

YEAR

INVENTORY
(RS)

WORKING
CAPITAL

PERCENTAGE
(%)

2011-2012

2460.77

-1347.23

-1.83

2012-2013

2673.8

3500.6

0.76

2013-2014

3191.29

4421.35

0.72

2014-2015

3298.71

5093.68

0.65

ANALYSIS:From the above table it is clear that there is a negative value in the working
capital ratio during the year 2011-2012 due to the increase in the current
liabilities=Rs 7639.52Lakhs and the current assets =6292.29Lakhs. So why the
working capital is having the negative value.

GRAPH NO:5.4
GRAPH SHOWING INVENTORY TO WORKING CAPITAL.

Page 63

Material Management
1

0.76

0.72

0.65

2012-2013

2013-2014

2014-2015

0.5
0
2011-2012
-0.5
-1
-1.5
-2

-1.83

INTERPRETATION:
From the above graph it can be inferred that due to increase in the current
liabilities

value, due to this slight changes in the level of inventory of a

company during the year 2014-2015, so why there is a slight variations in the
working capital.

TABLE NO:5.5

Page 64

Material Management
TABLE SHOWING ANNUAL CONSUMPTION OF RAW
MATERIALS
Rs.in Lakhs

YEAR

ANNUAL
CONSUMPTION OF
R/M(IN LAKHS)

2011-2012

2123.08

2012-2013

3072.8

2013-2014

3824.67

2014-2015

3139.53

ANALYSIS:From the above table it is clear that the annual consumption of raw
material has been increased in the year 2013-2014 when compared to other previous
years, but there is a decrease in the values of annual consumption of raw materials during
the year 2014-2015.

GRAPH NO:5.5
GRAPH SHOWING CONSUMPTION OF RAW MATERIAL

Page 65

Material Management
.
4500
3824.67

4000
3500

3139.53

3072.8

3000
2500

2123.08

2000
1500
1000
500
0
2011-2012

2012-2013

2013-2014

2014-2015

INTERPRETATION:From the above graph it can be inferred that there is more annual
consumption of raw materials in the year 2013-2014, may be due to a more production
and more demand to a product, and there is a increase in the consumption of raw
materials year by year.

TABLE NO:5.6
TABLE SHOWING THE STOCK OF WORK IN PROGRESS.

Page 66

Material Management
YEAR

WORK IN PROGERSS(IN
LAKHS)

2011-2012

58.99

ANALYSIS:-

2012-2013

113.56

The above table indicates

the
the
the

stock of work in progress,


2013-2014

161.42

2014-2015

196.86

stock has been increased in


WIP from the year on year,
there is a more increase in

the year 2014-2015, i.e.. Rs. 196.86 Lakhs.

GRAPH NO:5.6
GRAPH SHOWING STOCK OF WORK IN PROGRESS

Page 67

Material Management
250
196.86

200
161.42
150
113.56
100
58.99
50
0
2011-2012

2012-2013

2013-2014

2014-2015

INTERPRETATION:From the above graph it can be inferred that during the year 20142015 there is more increase in the value, because the orders during this year is more when
compared to other years.

TABLE NO: 5.7


TABLE SHOWING INVENTORY CONVERSION PERIOD.
Page 68

Material Management
Inventory conversion period =

No of days a year
Stock turnover ratio

.
YEAR

NO OF DAYS
IN A YEAR

STOCK
TURNOVER
RATIO

INVENTORY
CONVERSION
PERIOD (DAYS)

2011-2012

365

2.19

167

2012-2013

365

2.25

162

2013-2014

365

2.08

175

2014-2015

365

1.93

189

ANALYSIS:From the above table it is clear that the stock turnover ratio has been
decreased from 2014-2015, when compared to other years, but there is a increase in the
inventory conversion period during the year 2014-2015.

GRAPH NO: 5.7


GRAPH SHOWING INVENTORY CONVERSION PERIOD.

Page 69

Material Management
2.3
2.2

2.25
2.19
2.08

2.1
2

1.93
1.9
1.8
1.7
2011-2012

2012-2013

2013-2014

2014-2015

INTERPRETATION:From the above graph it can be inferred that there is a


decrease in the stock turnover ratio due to increase in the average stock and the cost of
goods sold during the year 2014-2015, There is a increase in the inventory conversion
period due to decrease in the stock turnover ratio during the year 2014-2015.

TABLE NO:5.8
TABLE SHOWING AVERAGE STOCK OF RAW MATERIAL.
Page 70

Material Management
Average

stock

of

raw

material

Opening Stock of Raw material+Closing Stock of Raw material


2
Rs.in Lakhs

YEAR

O/S OF RAW
MATERIAL

C/S OF
RAW
MATERIAL

AVERAGE
STOCK OF
RAW
MATERIAL

2011-2012

3024.54

3135.77

3080.15

2012-2013

3135.77

3669.03

3402.4

2013-2014

3669.03

4084.93

3876.98

2014-2015

3583.56

3583.56

3583.56

ANALYSIS:From the above table it can be analyzed that the average stock of raw
material in the year 2011-2012 was 3080.15, 2012-2013 was 3402.4, 2013-2014 was
3876.98 and in the year 2014-2015 was 3583.56.This shows the increasing trend of
average stock of raw material.

GRAPH NO:5.8

Page 71

Material Management
GRAPH SHOWING AVERAGE STOCK OF RAW MATERIAL
4500
3876.98

4000
3500

3583.56

3402.4
3080.15

3000
2500
2000
1500
1000
500
0
2011-2012

2012-2013

2013-2014

2014-2015

INTERPRETATION:
From the above graph it can inferred that there is no drastic changes in the average stock
when compare to previous year 2013-2014. The company has maintained consistency in
purchase of raw material during the year 2014-2015.

TABLE NO: 5.9


Page 72

Material Management
TABLE SHOWING CURRENT RATIO
Rs. In Lakhs

YEAR

CURRENT
ASSETS

CURRENT
LIABILITIES

CURRENT
RATIO

2011-2012

6,292.29

7,639.52

0.82

2012-2013

12,133.31

8,632.67

1.4

2013-2014

11,828.45

7,407.10

1.59

2014-2015

11,991.62

6,897.94

1.74

ANALYSIS:
From the above table it is clear that the current assets are more when compare to current
liabilities except in the year 2011-2012, but there is a increase in the current assets and
current liabilities, and also the current ratio during the year 2014-2015.

GRAPH NO:5.9

Page 73

Material Management
GRAPH SHOWING CURRENT RATIO
2
1.74

1.8

1.59

1.6

1.4

1.4
1.2
1
0.8

0.82

0.6
0.4
0.2
0
2011-2012

2012-2013

2013-2014

2014-2015

INTERPRETATION:
From the above graph it can be inferred that there is a slight increase in the year 20142015, which indicates good liquidity position of the business in the year 2014-2015.

TABLE NO:5.10

Page 74

Material Management
TABLE SHOWING DEBTORS TURNOVER RATIO
Net annual sales
Drs turnover ratio= Average Debtors

Average Drs =

O pening Debtors +Closing Debtors


2

Rs. In Lakhs

YEAR

NET
ANNUAL
SALES

AVERAGE
DRS

DRS
TURNOVER
RATIO

2011-2012

5,482.11

2535.8

2.16

2012-2013

5,767.64

2,795.10

2.06

2013-2014

6,103.82

3010.81

2.02

2014-2015

6,275.52

3731.6

1.68

ANALYSIS:
From the above table it can be analyzed that there is a increase in the year on year and
also the average Drs has been increased in the year 2014-2015, but the Drs turnover
ratio has been decreased in the year 2014-2015.

GRAPH NO:5.10
Page 75

Material Management
GRAPH SHOWING DRS TURNOVER RATIO

2.5
2.16

2.06

2.02

1.68
1.5
1
0.5
0
2011-2012

2012-2013

2013-2014

2014-2015

INTERPRETATION:
From the above graph it can be inferred that due to lower ratio in the year 2014-2015, the
management has to give more interest towards the collection of the money in a better
way.

TABLE NO:5.11
Page 76

Material Management
TABLE SHOWING STOCK TURNOVER RATIO
Stock turnover ratio =

Average inventory =

Sales
Average inventory

Opening i nventory+Closing inventory


2
Rs. in Lakhs

STOCK
TURNOVER
RATIO

YEAR

SALES

AVERAGE
INVENTORY

2011-2012

5,482.11

2,498.83

2.19

2012-2013

5,767.64

2,567.28

2.25

2013-2014

6,103.82

2,932.54

2.08

2014-2015

6,275.52

3,245

1.93

ANALYSIS:
From the above table it is observed that there is a increase in the Average inventory and
the Sales during the year 2014-2015, when compared to other previous years, but the
stock turnover ratio has been decreased in the year 2014-2015.

GRAPH NO : 5.11

Page 77

Material Management
GRAPH SHOWING STOCK TURNOVER RATIO
2.3
2.2

2.25
2.19
2.08

2.1
2

1.93
1.9
1.8
1.7
2011-2012

2012-2013

2013-2014

2014-2015

INTERPRETATION:
From the above graph it can be inferred that the company has more inventory by the
anticipation of the sales which have not occurred in the year 2014-2015, so the stock
turnover ratio has been decreased during these year.

TABLE NO:5.12

Page 78

Material Management
TABLE SHOWING CURRENT ASSET TURNOVER RATIO
Rs. In Lakhs

YEAR

SALES

CURRENT
ASSETS

CURRENT ASSET
TURNOVER
RATIO

2011-2012

5,482.11

6,292.29

0.87

2012-2013

5,767.64

2,133.27

0.47

2013-2014

6,103.82

11,828.45

0.52

2014-2015

6,275.52

11,991.62

0.52

ANALYSIS:
From the above table it is clear that there is a decrease in the current assets during the
year 2011-2012 due to the cash & bank balances & the capital work in progress values,
in the year 2012-2013 due to the gradual increase in the current assets the Current asset
turnover ratio has been decreased.

GRAPH NO :5.12

Page 79

Material Management
TABLE SHOWING CURRENT ASSET TURNOVER RATIO

1
0.87

0.9
0.8
0.7
0.6

0.52

0.52

2013-2014

2014-2015

0.47

0.5
0.4
0.3
0.2
0.1
0
2011-2012

2012-2013

INTERPRETATION:
From the above graph it can be inferred that there is no much impact on the business ,
because the ratio is constant during the year 2013-2014, 2014-2015 which implies the
company has made more product sales with minimum investments in the current assets
during these years.

Page 80

Material Management
TABLE NO : 5.13
TABLE SHOWING AVERAGE COLLECTION PERIOD
Average period=

YEAR

No of working daysa year


Debtors turnover ratio

NO OF
DRS
AVERAGE
WORKING TURNOVER COLLECTION
DAYS
RATIO
PERIOD

2011-2012

365

2.16

169

2012-2013

365

2.06

177

2013-2014

365

2.02

181

2014-2015

365

1.68

217

ANALYSIS:
The above table depicts the average collection period due to changes in the debtor
turnover ratio the collection period has been increased. The Dr,s turnover ratio has been
decreased year by year due to increase in the net annual sales and the average Drs.

Page 81

Material Management

GRAPH NO : 5.13
GRAPH SHOWING AVERAGE COLLECTION PERIOD
250
217
200

181

177

169
150
100
50
0

2.16
2011-2012

2.06
2012-2013

2.02
2013-2014

1.68
2014-2015

INTERPRETATION:
From the above graph it can be inferred that the company has not followed the stringent
collection procedure so the collection period has been increased in the year 2014-2015.

Page 82

Material Management

TABLE NO:5.14
TABLE SHOWING INVENTORY TURNOVER RATIO
Cost of goods sold
INVENTORY TURNOVER RATIO Average inventory

YEAR

COST OF
GOODS SOLD

AVERAGE
INVENTORY

INVENTORY
TURNOVER
RATIO

2011-2012

3144.67

2498.83

1.26

2012-2013

3579.09

2567.28

1.39

2013-2014

3806.93

2932.54

1.29

2014-2015

3630.89

3245

1.12

ANALYSIS:
From the above table it is clear that there is a fluctuations in the values during the year
2013-2014 and in the year 2014-2015 when compare other previous years.

Page 83

Material Management

GRAPH NO: 5.14


GRAPH SHOWING INVENTORY TURNOVER RATIO
1.6
1.4

1.39

1.29

1.26

1.12

1.2
1
0.8
0.6
0.4
0.2
0
2011-2012

2012-2013

2013-2014

2014-2015

INTERPRETATION:
From the above graph it is inferred that there is a decrease in the ratio due to reduction in
the demand and also the high inventory in the year 2014-2015.

Page 84

Material Management

TABLE NO : 5.15
TABLE SHOWING STOCK TURNOVER IN DAYS
STOCK TURNOVER IN DAYS = AVERAGE STOCK* 365 DAYS/
COST OF GOODS SOLD
Rs. In Lakhs

YEAR

AVERAGE STOCK *
365 DAYS

COST OF
GOODS SOLD

STOCK
TURNOVER IN
DAYS

2011-2012

2498.83*365

3144.67

290

2012-2013

2567.28*365

3579.09

262

2013-2014

2932.54*365

3806.93

281

2014-2015

3245*365

3630.89

326

ANALYSIS:
From the above table it shows that the average stock of the company has been increased
due to the increase in the production of the products and the addition of some of the
products during the year 2014-2015.

Page 85

Material Management

GRAPH NO:5.15
GRAPH SHOWING STOCK TURNOVER IN DAYS
4000

3579.09

3806.93

3630.89

3500 3144.67
3000
2500
2000

COST OF GOODS
SOLD

1500
1000
500

290

262

281

326

STOCK TURNOVER IN
DAYS

INTERPRETATION:
From the above graph it can be inferred that the company holds the inventory for 326
days during the year 2014-2015, because of the decrease in the sales or demand to the
products during this year.

Page 86

Material Management

CHAPTER- 6
FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS
The percentage of the Inventory to Net sales has been increased in the year 20142015 when compared to other years.
Due to increase in the Inventory and the Current assets the inventory to current
ratio has been increased in the year 2014-2015.
The percentage o the working capital has been increased from -1.83 to , 65 during
the year 2014- 2015.
The net sales of the company as increased in the year 2014 2015, as a result of
this inventory to net sales as increased to 52.56%.
The increase in the total assets in the year 2014-2015 the percentage of the
inventory to total assets has been decreased to 46.92% in the year 2014-2015.
The annual consumption of the raw materials has been increased to Rs. 3,324.67
Lakhs in the year 2013-2014.
The average collection period have been increased by 217 days in the year 20142015.
The turnover ratio have been decreased by 1.93 in the year 2014-2015.
The current asset turnover ratio have been decreased in the year 2014-2015.

Page 87

Material Management

SUGGESTIONS
By going through all the procedures followed in Tata Steel Ltd-Wire Division we can say
that the management of the inventories play a major role in the success of the
organization. As a whole the firm is following a good purchase procedure over different
materials, the company will be purchasing only certain materials from the outside of the
company for the production purposes. But there are certain content in the existing
Inventory management system. Hence on the basis of the study the following suggestions
can be given. I hope that suggestions will be taken by the organization in a right spirit and
implemented.
It is found that in every production units there are A, B and C item
It is suggested to keep the materials A class items in some units, B class items in some
units, and C class items in some units so that it is very easy to identify the items in a
order wise and they can give attention towards each and every unit according to their
importance.
Method of Analysis
It is found that the company is using the ABC analysis to a large extent, hence
it is suggested to follow the different methods for classification such as
Classification
Basis
VED
To know the importance of critically Vital,
Essential, Desirables.
FSN

To know the place at which materials

Moves (fast
Moving, slow moving, none moving)
HML
SDE

To know the unit price of materials


( high, medium, low)
To know the difficulties in procurement
(Scare, difficult, easy to obtain)

Page 88

Material Management

Reduction in Lead time


The company must try to minimize the lead time at the time of production, so that
the company can reduce the production time so the company can meet the
customers expectations. It is suggested that the company should be adopt some
new management systems in order to communicate vendors in a short span of
time their by reducing the lead time. Hence the organization can compete at the
International market and have a better future.

CONCLUSION

Page 89

Material Management
Inventory management is one of the basic important functions of every business. An
average manufacturing organization in India has more than 60% of its current asset
invested in inventories. Therefore, by following proper efficient inventory management
principles, the company can certainly reduce the cost of inventory and can improve its
bottom line and thereby, becoming competitive, which in turn will improve its market
share.
The research topic Inventory management, has a greater implications on Indian industry,
from the analysis of inventory management in Tata Steel Ltd-Wire Division, it is very
clear that , it has achieved greater importance in production control to a large extent. It is
also enhances the arising need of the organization, in respect of inventory management.
The inventory management in Tata Steel Ltd-Wire Division, the inventories of the
company other than disposable scrap are valued at lower of cost or net realizable value.
The cost of materials is ascertained by using the weighted average cost formula.
Adequate provision is made for inventory which are more than five years old which may
not be required for further use.
Therefore inventory management acts as the Pulse of any organization, and will have
impact on all other activities in the organization. Though inventory management
comprises huge investment, it gives good results, when good inventory control
techniques are adopted, and thus enhances the smooth functioning in production.
This study has helped me a lot in obtaining good knowledge of inventory management in
Tata Steel Ltd-Wire Division. Hereby inventory management is an essential element in
any organization, provide it is maintained tactfully by adopting latest techniques and
utilizing best resulting from computerization.
Finally I conclude that the company is maintaining the good inventory management in
order to meet the future demands.

Page 90

Material Management
BIBILOGRAPHY
1. K.Ashwathappa and K.Shridar Bhat - Production and Operations
Management, Himalaya Publishing House.
2. TATA STEEL LTD-WIRE DIVISION Booklets.
3. Dr. Monshi and Dr. Gayithri Reddy - Research Methodology,
Himalaya Publications.
4. Broachers.
5. Company Website.
WWW.tatasteelltd.com

ANNEXURE
Financial Statement of TATA STEEL LTD-WIRE DIVISION.
Particulars

Mar '14

Mar '13

Mar '12

Mar '11

Mar

12 mths

12 mths

12 mths

12 mths

12 m

Page 91

Material Management
Sources Of Funds
Total Share Capital
Equity Share Capital
Preference Share Capital
Reserves
Revaluation Reserves
Net worth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets
Contingent Liabilities Book Value(Rs)

80
80
0
6,937.24
0
7,017.24
12.61
0
12.61
7,029.85

80
80
0
6,223.69
0
6,303.69
19.17
0
19.17
6,322.86

80
80
0
5,542.21
0
5,622.21
14.76
0
14.76
5,636.97

80
80
0
4,922.57
0
5,002.57
0.41
0
0.41
5,002.98

80
80
0
4,265
0
4,345
0.7
0
0.7
4,346

2,206.77
1,555.83
650.94
196.86
11.98
3,298.71
4,128.54
4,564.37
11,991.62
1,675.88
0
13,667.50
6,897.94
599.49
7,497.43
6,170.07
0
7,029.85
773.64

2,054.07
1,478.62
575.45
161.42
11.98
3,191.29
3,334.67
5,302.49
11,828.45
1,868.83
0
13,667.50
7,407.10
716.17
8,123.27
5,574.01
0
6,322.86
787.36

1,885.03
1,374.87
510.16
113.56
11.98
2,673.80
2,686.95
6,772.52
12,133.27
2,089.38
0
14,222.65
8,632.67
588.72
9,221.39
5,001.26
0
5,636.96
1,119.72

1,789.00
1,305.29
483.71
58.99
11.98
2,460.77
2,903.25
928.27
6,292.29
778.06
5,591.09
12,661.44
7,639.52
573.6
8,213.12
4,448.32
0
5,003.00
266.69

1,702
1,212
489
31.
11.
2,536
2,168
596
5,302
1,700
2,981
9,984
4,476
1,694
6,171
3,813
0
4,346
205

Profit and Loss Account of TATA STEEL LTD-WIRE


DIVISION.
Particulars
INCOME
Sales Turnover
Excise Duty
Net Sales

Mar '14
12mths

Mar '13
12 mths

Mar '12
12 mths

Mar '11
12 mths

Mar '10
12 Mths

6,275.52
0
6,275.52

6,103.82
0
6,103.82

5,767.64
0
5,767.64

5,540.68
58.57
5,482.11

5,237.51
41.88
5,195.63

Page 92

Material Management
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised
Total Expenses
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)

428.47
-47.33
6,656.66

609.98
278
6,991.80

585.49
89.95
6,443.08

326.11
5.58
5,813.80

243.54
28.11
5,467.28

3,583.56
37.37
1,030.43
0
0
685.72
0
5,337.08
891.11
1,319.58
3.4
1,316.18
142.1
1,174.08
0.65
1,174.73
243.12
931.62
1,753.51
0
186.4
31.68

4,084.93
34.13
1,110.79
0
0
509.49
0
5,739.34
642.48
1,252.46
0.78
1,251.68
130.71
1,120.97
-6.37
1,114.60
224.76
889.83
1,654.41
0
178.4
29.95

3,669.03
26.9
1,081.23
0
0
465.82
0
5,242.98
614.61
1,200.10
0.6
1,199.50
120.8
1,078.70
-3.86
1,074.84
244.95
829.9
1,573.94
0
166.4
26.99

3,135.77
30.45
1,041.86
17.05
260.84
61.23
-0.19
4,547.01
940.68
1,266.79
10.79
1,256.00
122.04
1,133.96
22.64
1,156.60
295.09
861.47
1,411.24
0
172.8
28.22

3,024.54
27.22
1,009.58
15.87
240.75
62.43
-0.36
4,380.03
843.71
1,087.25
9.37
1,077.88
115.94
961.94
84.06
1,046.00
324.88
720.87
1,355.50
0
153.6
25.7

800
116.45
233
877.15

800
111.23
223
787.96

800
103.74
208
702.78

800
107.68
216
625.32

800
90.11
192
543.21

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