CHAPTER-3

COMPANY PROFILE

STEEL ATHOURITY OF INDIA LIMITED (SAIL)

During struggle for independence, Pt. Jawahar Lal Nehru our first prime minister of
independent India had a very clear vision about the role of steel in the development of our
nation. Although Tata Iron & Steel Co. 9TISCO) established in 1907 marking the beginning
of Indian Steel industry followed by Indian Steel Corporation (1918) they were too small to
meet the development requirement of a big country like ours. Therefore, in the first industrial
policy resolution of the government soon after independence, government decided to
establish steel plant in Public Sector only. However work could be started at faster pace in
1954 when. Hindustan Steel Limited was formed and the steel plants of

1 MT capacity of

each were established with provision of further expansion at Bhilai, Rourkela and Durgapur
with assistance from USSR, West Germany and UK respectively.
Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is
fully integrated Iron and Steel maker, producing both basic and special steel for domestic,
construction, Engineering, Power, Railway, Automotive and Defense industries and for sale
in export markets.
Ranked amongst the top ten public sector companies of India in terms of turnover. SAIL
manufactures and sells a broad range of steel products, including hot and cold rolled sheets
and coils, galvanized sheet, electrical sheets, structural, railway products, plates, bars and
rods, stainless steel and other alloy steels. SAIL produces Iron and Steel at four integrated
plants and three special steel plants, located principally in the eastern and central religions of
India and situated closed to domestic source of three raw materials including the Company's
Iron Ore, limestone and dolomite mines.

SAIL'S wide range of long and flat steel products are much in demand in the domestic as well
as the international market. This vital responsibility is carried out by SAIL's own Central
Marketing Organization (CMO) and the International Trade Division (ITD). CMO
encompasses a wide network of 38 branch offices and 47 stockyards located in major cities
and towns throughout India.
With technical and managerial expertise and known-how in steel making gained over
decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and
consultancy to clients world-wide.
SAIL has a well-equipped Research and Development Center for Iron and Steel (RDCIS) at
Ranchi which helps to produce quality steel and develop new technologies for the steel
industry. Beside SAIL has its in-house Center for Engineering Technology (CET)
Management Training Institute (MTI) and Safety Organization at Ranch. Its captive mines
are under the control of the Raw Materials Division in Kolkata. The Environment
Management Division and Growth Division of SAIL operate from their headquarters in
Kolkata. Almost all its plants and major units are ISO certified.

Integrated Steel Plants:Bhilai Steel Plant (BSP) in Chhattishgarh.

Durgapur Steel Plant (DSP) in West Bengal.
Rurkela Steel Plant (RSP) in Orissa.
Bokaro Steel Plant (BSL) in Jharkhand.
IISCO steel plant (IIS) in west Bengal.

Special Steel Plants:Alloy Steel Plants (ASP) in West Bengal.

Salem Steel Plant (SSP) in Tamil Nadu.
Visvesvaraya Iron and Steel Plant (VISL) in Karnataka.

Subsidiaries:Maharashtra Elektrosmelt Limited (MEL) in Maharastra.

JOINT VENTURE
SAIL has promoted joint venture in different areas ranging from power to e-commerce.
NTPC SAIL Power Company Pvt. Ltd.
Set up in March 2001, this 50:50 joint venture between SAIL and the National Thermal
Power Corporation (NTPC) operates and manages the Captive Power plants - II of the
Durgapur and Rourkela Steel Plants which have a combined capacity of 240 MW.
Bokaro Power Supply Company Pvt. Ltd.
This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in
January 2002 is managing the 302 MW power generations and 1880 tons per hour steam
generation facilitates at Bokaro Steel Plant.
Bhilai Electric Supply Company Pvt. Ltd.
Another SAIL-NTPC joint venture of 50:50 basis formed in March 2002 manages the 74
MW power plant- II of Bhilai Steel Plant which has additional capacity of producing 150 tons
of steam per hour.
UEC SAIL information technology Ltd.
This is 40:60 joint ventures between SAIL and USX Engineers & Consultants. "A subsidiary
of the US Steel Corporation, promotes information technology in the steel sector.
MetalJunction.com Private Ltd.
A joint venture between SAIL and Tata Steel on50:50 bases, this company promotes ecommerce activities in steel and related areas.

SAIL BANSAL Service Centre Pvt. Ltd.

SAIL has formed a joint venture with BMW industries Ltd. on 40:60 bases to promote a
service centre at Bokaro with the objective of adding value to steel.
North Bengal Dolomite Ltd.
A joint venture between SAIL and West Bengal Mineral Development Corporation Ltd.
on50:50 bases were formed for development of Jayanti Dolomite Deposit, Jalpaiguri for
supply of Dolomite of DSP and other plant.
Romelt - SAIL (India) Ltd.
A joint venture between SAIL, National Mineral Development Corporation (NMDC) and
Russian promotes for marketing Romelt technology developed by Russia for reducing of iron
bearing materials, which is carried out with carbon in single stage reactor with the use of
oxygen.
Ownership and Management
The Government of India owns about 86% of SAIL's equity and retains voting control of the
Company. However, SAIL, by virtue of its Navratna status, enjoys significant operational
and financial autonomy.

BACKGROUND & HISTORY OF SAIL:

A Rich Heritage

The Precursor
SAIL traces its origin to the formative years of an emerging nation-India. After independence
the builders of modern India worked with a vision - to lay the infrastructure for rapid
industrialization of the country. The steel sector was to propel the economic growth.
Hindustan Steel Private Limited was set up on January 19, 1954. The President of India held
the shares of the company on behalf of the people of India.

Expanding Horizon (1959-1973)

Hindustan Steel Limited (HSL) was initially designed to manage only one plant that was
coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done
by the Iron and Steel Ministry. From April 1957 the supervision and control of these two steel
plant were also transferred to Hindustan Steel. The registered office was originally in New
Delhi. It moved to Kolkata in July 1956 and ultimately to Ranchi in December 1959.
A new steel company, Bakaro Steel Limited was incorporated in January 1964 to construct
and operate the steel plant at Bakaro. The 1 MT phases of Bhilai and Rourkela Steel plants
were completed by the end of December 1961. The 1MT phase of "Durgapur Steel Plant
was completed in January 1962 after commissioning of the Wheel and Axle plant. The crude
steel production of HSL went up from 1.58 MT (1959-60) to 1.6 MT. The second phase of
Bhilai Steel Plant was completed in September 1967 after commissioning of the Wire Rod
Mill. The last unit of the 1.8 MT phase of Rourkela the Tandem Mill - was commissioned in
February 1967, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969
after commissioning of the Furnace in SMS. Thus with the completion of the 2.5 MT stage at
Bhilai 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity
of HSL was raised to 3.7 MT in1968-69 and subsequently to 4MT in 1972-73.

Holding Company
The Ministry of Steel and Mines drafted a policy statement to evolve a new model for
managing industry. The policy statement was presented to the Parliament on December 2,
1972. On this basis the concept of creating a holding company to manage inputs and outputs
under one umbrella was mooted. This led to the formation of Steel Authority of India Ltd.
The company, incorporated on January 24, 1973 with an authorized capital of Rs. 2000 Crs.
was made responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur,

"Rourkela and Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was
restructured as an operating company.
Since its inception SAIL has been instrumental in laying a sound infrastructure for the
industrial development of the country. Besides, it has immensely contributed to the
development of technical and managerial expertise. It has triggered the secondary and tertiary
waves of economic growth by continuously providing the inputs for the consuming industry.

SAIL Today
SAIL today is one of the largest industrial in India. Its strength has been the diversified range
of quality steel products catering to the domestic, as well as the export markets and a large
pool of technical and professional; expertise.
Having achieved the initial goal of laying the foundation for the industrial development of the
country. SAIL took up the new challenge of facing the era of liberalized economy and the
emerging competitive scenario in the Steel market on the eve of entering the new millennium,
SAIL launched its Financial and Business restructuring program. The strategy includes a
divestment of non-core activities, restructuring of marketing function and a focus on pruning
cost of operation. The goal for the company is to emerge as one of the lowest cost producer in
the global steel market.

PRODUCT MIX
Product wise:
Semis

Blooms, Billets & Slabs

Long Products

Structurals
Crane

Rails

Bars,
Flat Products

Rods

Wire Rods
HR

Coils,

&

Rebars

Sheets

&

Skelp

Plates
CR

Coils

GC

Sheets\

&
GP

Sheets

Sheets

and

Coils

Tinplates
Electrical Steel
Tubular Products

Pipes

Railway Products

Rails
Wheels, Axles, Wheel Sets

Plant wise:
Bhilai Steel Plant

Blooms,

Billets

&

Channels,
wire
plates,
Bokaro Steel Plant

Slabs

Beams

Angles,
rods

(TMT,

Rails

bars

plain

&

&

ribbed)

heavy

Pig Iron, Chemicals & Fertilizers

HR
Coils

structurals

&

Sheets

Plates
CR
GP
Durgapur Steel Plant

Coils
Sheets

&
&

Sheets

Coils/

GC

Pig Iron, Chemicals & Fertilizers

Blooms,
Billets

&

Joists,

Channels,

Angles

Bars,

Rods

&

Sheets
Slabs
Rebars

Skelp
Wheels,
Rourkela Steel Plant

Axles,

Pig Iron, Chemicals & Fertilisers

HR
Plates

Wheel

Sets
Coils

CR
GP

Coils
Sheets/

&
GC

Sheets
Sheets

Tinplates
Electrical

Steel

Pipes
Salem Steel Plant

BHILAI

Pig Iron, Chemicals & Fertilizers

Stainless Steel

STEEL

PLANT

(BSP)

Bhilai Steel Plant (BSP) is a unit of Steel Authority of India (SAIL). Bhilai Steel Plant is a
pulsating giant in the glorious Industrial context of India. It came into existence on 10th June
1957. BSP the functionary of SAIL is a symbol of Indo-Soviet Techno economic
collaboration, and is one of the first three integrated steel plant set up by the Government of
India to build- up a sound base for industrial growth of the country. The agreement was
signed on 2nd February, 1955 for 1 MT production capacity; which rose to than 2.5 MT
(1967). And then to 4 MT in 1988 production of Crude Steel Per year.

On 4th February 1959 the President, Dr. Rajendra Prasad dedicated Bhilai to the Nation by
inaugurating the Blast Furnace No. 1 for production. Since then Bhilai has never looked back
and has steadily grown and modernized day by day. Bhilai has all along been giving special
attention to the employment to the weaker section. Bhilai has contributed significantly to
meet the Iron & Steel requirements of the country.
The Steel Plant has 10 coke ovens batteries and 7 Blast Furnace. The Plant gets its requisition
of raw materials and necessary resources by various adjoining centers. The Iron ore is met
from the captive mines of the plant which is situated at Dalil-Rajhara; the mechanized iron
ore mines 100 kms south from BSP. Lime stones also come from the manual mines of Nadini
about 25 kms to the North of the Plant. The need of Dolomite is fulfilled from the queries of
Hirri in Bilaspur District.
Steel plant requires various forms or energy, viz. electricity, fuel (solid, liquid & gases).
Steam oxygen, compressed air. Chilled water, air blast etc. At Bhilai the main source of
electricity is the CSEB grid from the NTPC korba Station, about 250 Kms. away. The Steel
Plant has have their own capacity of generating electricity of 36 MW and 74 MW by power
plant I & II respectively as the alternative source of power supply to meet emergency loads in
case of interruptions.
There exist and extensive communication system at the work which include Auto Telephone
Exchange dispatched Communication system, shop-floor loudspeaker system, gas and fire
signaling and blocking system of the plant rail transport facilities etc.

PLANT LAYOUT
The unit or the plant has been laid in sequential formation according to technological
interrelationship so as to ensure un-interrupted flow of process material like coke. Slag etc
and to minimize the length of various inter plant connection utilities and services.

RAW MATERIALS
The plant owns and manages the mechanized and manual iron ore mines at Dalli Rajhara,
Situated about 100 KM from Bhilai and Limestone mine at Nandini. Ahout 25 Kms away

from plant. The plant owns quarries at Hirri, Chhattisgarh (for Dolomite) over a million tones
of minerals of mines annually from the captive mines.

SERVICES & UTILITIES

BSP is an integrated Steel Plant which requires various forms of energy like electricity, Fuel
(solid, liquid and gaseous) stream, oxygen, compressed air, chilled water, air blast etc.

Electricity power is supplied by BESCL (Bhilai Electric Supply Company Limited) a

joint venture between National Thermal Power Corporation and SAIL from Korba
250 Km away from Bhilai.

Water supply comes from a well constructed system of water works of the state
government - Tandula reservoirs, water from nearby rivers are brought to two huge
water reservoirs ( Maroda Tank 1 & 2) through a well laid canal, 60 km long from
BSP.

The other utility gaseous liquid and solid fuels, chilled water, steam. Oxygen and
compressed air are provided- at Plant by centralized utility services.

There exists an extensive communication system at work place, which includes an

auto telephone exchange, dispatch communication system, gas and fire alarm signal,
yard communication and automatic signaling and blocking system of plant, rail
transport facility and shop floor loudspeaker system.

EXPORT SECTION
Bhilai Steel Plant has an export section to take care of the requirement of International Trade
Division (ITD). The export enquiry received by International Trade Division is sent over to
Bhilai for detail discussion. After the confirmation from Bhilai. International Trade Division
initiates action on commercial settlement and enter into a contract with the foreign buyer. The
work order then issued by International Trade Division is distributed to various agencies likes
Purchase, Finance and GM Services. Soon after subsequent rolling takes place. After
inspection is made the consignment is sent through railways to Vishakhapatnam port for the

loading into ship. In case of export to Nepal, The consignment is moved by wagon either to
Patna, Kanpur or Bhilai for onward dispatch to the buyer in Nepal.

MANAGEMENT
Initially BSP was under the administrative control of the Ministry of Iron and Steel with
powers delegated to the chief' of the Plant. Later Hindustan Steel Ltd. controlled the
management, which was formed on 19th January 1954 to manage Rourkela Steel Plant;
Bhilai Steel Plant became the constituent of Hindustan Steel Ltd, with the formation of Steel
Authority of India Limited (SAIL) 24th January 1973.
In the organization of BSP the Managing Director (MD) is the top most authority
responsibility for overall control. There are six Executive Directors in following manner:
Executive Director

Personal &Administration

Executive Director

Materials Management

Executive Director

Project

Executive Director

Finance & Accounts

Executive Director

Works

Executive Director

B.S.P

Director

Medical & Health Service

They have under them General Manager (GM), DGM, AGM, Sr. Manager & Manager. Also,
GM (Marketing & Strategic Planning) reporting to MD directly has the sole responsibility on
Marketing of various main products & secondary products through CMD and BSP.

THE QUALITY POLICY OF BSP

Attaining market leadership through enhancing customer satisfaction.

 Achieving continual improvement in productivity, quality and salability of our

products.
Active involvement of all our people in achieving our goals, objective and targets.
Adherence to a quality management system based on ISO: 9001:2000 and its periodic
review for continued effectiveness.

ORGANIZATIONAL OBJECTIVE
To enhance customer satisfaction through: Improvement in productivity ad product quality.
Skill enhancement of our people by competence, commitment and culture building.
Production as per Customer Requirement.

ENVIRONMENT POLICY
Bhilai Steel Plant committed to protect environment and shall strive to:
Introduce sound environmental management practices for minimizing pollution and
its impact on air, water and land.
Conduct operations in an environmentally responsible manner for complying with
legislation and regulations related to its environmental aspects.
Conserve and optimally utilize raw materials, energy, water and other resources
Minimize waste generation and promote its recovery, recycling and re-use.
Achieve continual improvement in environmental performance by setting and
reviewing the objectives and targets periodically.

 Enhance environmental awareness amongst employees and interested parties.

Communicate environmental policy to the persons working for or on behalf of the
organization and make it available to public on demand.

AWARDS

&

ACCOLADES

Bhilai Steel Plant has excelled in all walks of life be it technology, quality, environment or
socio-cultural, etc. some of the prestigious awards has been bugged by BSP which are as
follows:
Prime-Minister Trophy for best Integrated Steel Plant in India - Won Seven times
science its inception in the year 1992-93.
National Energy conservation Award in the integrated steel sector won for 1994, 1996,
1998 & 1999.
IIM National Quality Award winners in ferrous category during 1995-96, 1997-98 and
1999-2000.
BIS Rajiv Gandhi National Quality Award won twice in recent years.

 100 Golden Peacock National Quality Award won thrice in recent years.
INSSAN award for employee suggestions six times in last seven years.
SAIL Paryawaran Awards for all the six times (this award was given from 1992-93 till
1997-98), for best environmentally managed Integrated Steel Plant. Several
Paryawaran Awards have also been won by captive mines and SMS-I of BSP.
Indo-German Green Tech. Environment Excellent Award for the year 1999-2000.
Apart from the above award individuals group awards have been won time to time
by BSP employees at National level in the field of Quality Circles, Management,
Metallurgy, Sports & Cultural Activities