COMPANY PROFILE

Company name Steel authority of india ltd.

industry Mining &metals
Type Public company
Status Operating
Common size 10001 and more employees
Headquarter Raipur area,india
Chairman C s verma
Website http://www.sailbaron.com
 INTRODUCTION

Steel Authority of India Limited (SAIL) is the leading steel-making company in

India. It is a fully integrated iron and steel maker, producing both basic and
special steels for domestic construction, engineering, power, railway, automotive
and defence industries and for sale in export markets.

Ranked amongst the top ten public sector companies in India in terms of
turnover, SAIL manufactures and sells a broad range of steel products, including
hot and cold rolled sheets and coils, galvanised sheets, electrical sheets,
structurals, railway products, plates, bars and rods, stainless steel and other
alloy steels. SAIL produces iron and steel at five integrated plants and three
special steel plants, located principally in the eastern and central regions of India
and situated close to domestic sources of 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 Organisation (CMO) that transacts business
through its network of 37 Branch Sales Offices spread across the four regions, 25
Departmental Warehouses, 42 Consignment Agents and 27 Customer Contact
Offices. CMO’s domestic marketing effort is supplemented by its ever widening
network of rural dealers who meet the demands of the smallest customers in the
remotest corners of the country. With the total number of dealers over 2000 ,
SAIL's wide marketing spread ensures availability of quality steel in virtually all
the districts of the country.SAIL's International Trade Division ( ITD), in New
Delhi- an ISO 9001:2000 accredited unit of CMO, undertakes exports of Mild Steel
productsand Pig Iron from SAIL’s five integrated steel plants.SAIL operate from
their headquarters in Kolkata. Almost all our plants and major units are ISO
Certified.
BOARD OF DIRECTOR
S.NO NAME ADDRESS
1 Shri C S Verma Chairman
Steel Authority of India Limited,
New Delhi-110003

2 Shri G Elias Joint Secretary to the Government of India

Ministry of Steel, Udyog Bhawan,
New Delhi-110011

3 Shri Soiles Bhattacharya Director (Finance)

Steel Authority of India Limited,
New Delhi-110003

4 Shri Shoeb Ahmed Director (Commercial)

Steel Authority of India Limited,
New Delhi-110003

5 Shri SN Singh Managing Director

Rourkela Steel Plant,
Rourkela- 769011

6 Shri PK Bajaj Managing Director

Durgapur Steel Plant,
Durgapur-713203

7 Prof Deepak Nayyar 5-B Friends Colony (West),

New Delhi- 110065

8 Shri AK Goswami House no. 23, Sector-14 A,

Noida- 201301 (Uttar Pradesh)

9 Shri BB Singh Director (Personnel)

Steel Authority of India Limited.
New Delhi-110003

10 Shri S Machendra Nathan Additional Secretary & Financial Adviser to

the Government of India
Ministry of Steel, Udyog Bhawan,
New Delhi-110011

11 Shri SS Mohanty Managing Director

Bokaro Steel Plant.
Bokaro-827001

12 Dr. Jagdish Khattar Studio #205, IHDP,

Plot # 7, Sector-127,
Noida-201301.

13 Prof. Subrata Chaudhuri Dept of Mining Engineering, Indian School of

Mines
Dhanbad-826004,
Jharkhand.

SAIL’s VISION:
To be respected world class corporation and the leader in Indian Steel Business in
Quality, Productivity, Profitability and Customer Satisfaction.
 Swot analysis
STRENGTH: Steel Plant there is a reservoir of skilled and experienced personnel's.
In marketing department of 130karo Steel Plant, there is a respect for hierarchy. This
enables management to ensure proper planning and implementation. Good corporate
image of SAIL enhances the level of confidence in managers.

There is a good record of harmonious customer relation that strengths the committed
progress in revenue generation of plant. Good management information system in the
marketing department of Bokaro Steel Plant enables to tap potential customer.

WEAKNESS: Lack of teamwork and co-ordination and lack of internal customer

orientation inhibits implementation of plants to a substantial extent. Complex pre sale
and post sale activities hinder most of the potential customers. Since there is no control
on the quality of by-products they are unable to fetch handsome revenue. Lack of
individual initiative for effectiveness of department.

OPPORTUNITIES: With the establishment of continuous casting, the capacity to

produce primary product has increased and this will increase the production of by-
products. The Jharkhand government has been putting emphasis on establishing new
industries in the outskirts of Bokaro. So there is a chance for Bokaro Steel.

THREATS: With the opening up of economy this public sector giant is facing threats
from new companies for its chemical products. With the coming up of Haldia
Petrochemical the eastern region is almost lost. It is possible that the setting up of other
such units will affect the sale of Bokaro Steel Plant in its present market also.
 BCG MATRIX

Segment Type Contribution

%

semis Blooms, billets& slabs 12%

Long Crane rails, bars rods 8%

products
Flat Electrical sheet, tin 17%
products plates

Tubular pipes 19%

products

Railways Rails, wheels, Axies 44%

products

BCG MATRIX OF SAIL

Stars ?
• Railways • Long products
 • Tubular products

Cows Dogs
• Semis • Flat products

PEST ANALYSIS
POLITICAL
Since SAIL operates in multiple cities across India, it needs to pay close attention to the
political climate but also laws and regulations in all the countries it operates in while also
paying attention to regional governing bodies. Laws governing commerce, trade,
growth, and investment are dependent on the local government as well as how
successful local markets and economies will be due to regional, national and local
influence. In accordance, SAIL headquarters in BOKARO, India, strictly controls and
regulates operations in all dealerships and subsidiaries, in addition to knowing and
abiding by all labor laws in the multiple countries where they have manufacturing plants
it has to watch political change

ECONOMIC
Operating in numerous countries across the India, sail functions with a global economic
perspective while focusing on eachindividual market.
Sail adapt and learn from the many different regions within the whole geopherical area of
country. They have experience and resources from five continents across the country, thus
when any variable changes in the market they can gather information and resources from all
over the country

SOCIAL
Undoubtedly, the beliefs, opinions, and general attitude of all the stakeholders in a company will
affect how well a company performs. This includes every stakeholder from the CEO and
President, down to the line workers who screw the door panel into place,
From the investor to the customer, the culture and attitude of all these people will ultimately
determine the future of a company and whether they will be profitable or not.

TECHNOLOGY
SAIL and its parent company, the SAIL Group, are ahead of the game in the technology field.
“The foundation of the company’s growth
is a deep understanding of economic stimuli and customer needs, and the ability to translate
them into customer-desired offerings through leading edge R&D” (Tata). Employing scientists
and engineers,’ Research and Development team is ahead of the pack in India’s.

PORTERS ANALYSIS
Suppliers are Suppliers are Weak
Powerful if: if:

Many competitive
Suppliers are
suppliers-product is
concentrated
standardized

Significant cost to Source of supply is

switch suppliers fragmented
 Buyers are Powerful if: Buyers are Weak if:

Buyers are concentrated High switching cost

Buyers purchase a significant Buyers are fragmented

proportion of output and have little influence
on product or price
 SUMIT RANJAN , pgdm roll no 44

Project submission

Submitted to :-
Prof. Srinivasan

STEEL AUTHORITY OF INDIA

 Submitted by; -
SUMIT RANJAN
44/jkbs/pgdm

Profit & Loss - Steel Authority of India (SAIL) Ltd. In crore

Particulars Mar'08-09 Mar'09-10

INCOME

Sales Turnover 49,331.47 44,059.72

Excise Duty 5,532.89 3,463.82

NET SALES 43,798.58 40,595.90

Other Income 0.00 0.00

TOTAL INCOME 46,078.47 42,924.01

EXPENDITURE

Manufacturing Expenses 3,762.77 4,234.65

Material Consumed 22,042.58 19,768.57

Personal Expenses 8,401.73 5,417.00

Selling Expenses 935.68 1,126.12

Administrative Expenses 1,644.78 834.52

Expenses Capitalised -1,930.40 0.00

Provisions Made 0.00 0.00

TOTAL EXPENDITURE 34,857.14 31,380.86

Operating Profit 8,941.44 9,215.04

EBITDA 11,221.33 11,543.15

Depreciation 1,285.12 1,337.24

Other Write-offs 128.02 10.33

EBIT 9,808.19 10,195.58

Interest 253.24 402.01

EBT 9,554.95 9,793.57

Taxes 3,284.28 3,452.89

Profit and Loss for

6,270.67 6,340.68
the Year

Non Recurring Items -277.12 228.89

Other Non Cash Adjustments 181.26 184.80

Other Adjustments 0.00 0.00

REPORTED PAT 6,174.81 6,754.37

KEY ITEMS
 Balance sheet - Steel Authority of India Ltd. in crore
Particulars Mar'08-09 Mar'09-10
Liabilities

Share Capital 4,130.40 4,130.40

Reserves & Surplus 23,853.70 29,186.30
Net Worth 27,984.10 33,316.70
Secured Loans 1,473.60 7,755.90
Unsecured Loans 6,065.19 8,755.35
TOTAL LIABILITIES 35,522.89 49,827.95
Assets
Gross Block 32,728.69 35,382.49
(-) Acc. Depreciation 20,459.86 21,780.91
Net Block 12,268.83 13,601.58
Capital Work in
6,544.24 15,039.83
Progress.
Investments. 652.70 668.83
Inventories 10,121.45 9,027.46
Sundry Debtors 3,024.36 3,493.90
Cash And Bank 18,228.53 22,436.37
Loans And Advances 4,292.50 5,155.32
Total Current Assets 35,666.84 40,113.05
Current Liabilities 10,201.51 13,383.67
Provisions 9,408.21 6,211.67
Total Current
19,609.72 19,595.34
Liabilities
NET CURRENT
16,057.12 20,517.71
ASSETS
Misc. Expenses 0.00 0.00
TOTAL ASSETS
35,522.89 49,827.95
(A+B+C+D+E)

Ratio analysis of sail

(For 2008-09 and 2009-2010)

➢ Current ratio = current assets/current liability

For 2008-09 = 35,666.84/19,609.72 = 1.82
For 2009-10 = 40,113.05/19,595.34 = 2.048

➢ Quick ratio = current assets-stock/current liability

For 2008-09 = 35,666.84-10,121.45/19,609.72 = 1.303
For 2009-10 = 40,113.05-9,027.46/19,595.34 = 1.59

➢ Inventory turnover ratio = COGS/av. Stock

For 2008-09 = 49,331.47/9574.455 = 5.153
For 2009-10 = 44,059.72/9574.455/ = 4.61
 ➢ Debt. Equity ratio = total debt./share holder fund
For 2008-09 = 35,522.89/27,984.10 = 1.27

For 2009-10 = 49,827.95/33,316.70 = 1.50

➢ Return on sale = PAT/sale

For 2008-09 = 6,174.81/43,798.58 =0.15

For 2009-10 = 6,754.37/40,595.90 = 0.17

➢ Debtors turnover ratio = sales/debtors

For 2008-09 = 43,798.58/3259.13 = 13.44

For 2009-10 = 40,595.90/3259.13 = 12.46

➢ Average collection period = no. of days in a year/debtors

turnover ratio

For 2008-09 = 365/13.44 = 27.16

For 2009-10 = 365/12.46 = 29.30

➢ Return on investment = PAT/total assets

For 2008-09 =6,174.81/35,522.89 = 0.18
For 2009-10 = 6,754.37/49,827.95 = 0.136

➢ Net profit ratio = net profit ×100

Sales
For 2008 -10 = 6,174.81 ×100 =14.099
43,798.58
For 2009-10 = 6,754.37 ×100 = 16.64
 40,595.90

➢ Return on equity = PAT/avg.share holder equity

For 2008-9= 6,174.81/30650.4 = 0.202

For 2009-10= 6,754.37/30650.4 = 0.220

➢ Proprietors ratio = share holder funds/total tangible assets

For 2008- 09= 27,984.10/35,522.89 = 0.788

For 2009 - 10= 33,316.70/49,827.95 = 0.669