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A Dissertation
On
In-depth comparative analysis of distribution system of OSIL
(Submitted in Partial Fulfilment of the Requirements of Bachelor of
Business Administration Program under Utkal University)
By:
Name of the Candidate
Monalisha Das
University Roll No66317UT09025
Faculty Guide: Biswaranjan Parida
Designation:
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CERTIFICATE FROM THE FACULTY GUIDE
This is to certifythat the dissertation entitledIn-depth
comparative analysis ofdistributi
on system by its distributor to retailers of OSILfollowed byOSILis an interim report carried byMonalisha Das .The report is an outcome of extensive study on the
partial fulfilment of Bachelor Business Administration
2009-2012To the best of my knowledge and belief, the report is
prepared by the student himself. Simultaneously, the
report fulfils the rules and regulations related to the
Dissertation of the university. I wish him all the
success.
Bhubaneswar
Signature
Date:
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ACKNOWLEDGEMENT
I feel immense pleasure in presenting this REPORT TITLED
Distribution System by its distributor to retailers of OSIL.
THIS REPORT HAS been prepared with the help of many
people who have contributed THEIR VALUABLE IDEAS &
suggestions in spite of their busy schedule.
I express my whole hearted gratitude to my esteemed guide
Mr. Biswaranjan Parida for his precious guidance &necessary advice in PREPARING THIS report.
I express my thanks to OSIL for their full cooperation.I am
also greatly indebted to the management and workers of
OSIL, for their attractive cooperation during the period of
survey and data collection.Especially I would place on
records my sincere thankfulness to Mrs.Manjushree Das Dy
GM (HR&A), and I am also very thankful to my esteemed guide
Mr.D.K Mishra, Deputy Manager (sales & accounts) who
helped in the study during the period of my data and
observation in the OSIL Palaspanga, Keonjhar.
Last but not the least; I owe my Gratitude to parents who
have been instrumental both directly and indirectly in the
successful preparation of this project work.
With ever greed for gods grace
MONALISHA DAS
REGN NO.:-
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DECLARATION
I MONALISHA DAS, HEREBY DECLARE THAT THIS PIECE OF
PROJECT ENTITLED HAS BEEN PREPARED BY ME AS A
TOPIC OF MY DISSERTATION WORK.
IT IS ALSO DECLARED THAT THIS project REPORT.NEITHER
FULLY NOT PARTIALLY HAS BEEN SUBMITTED TO ANY OTHER
INSTITUTE/UNIVERSITY FOR THE AWARD OF ANY DEGREE OF
DIPLOMA. AT LAST IT NEED NOT BE MENTIONED THAT I
ALONE BEAR THE RESPONSIBILITY OF ANY SHORTCOMINGS.
NAME:- MONALISHA DAS
REGD.NO:- 66317UT09025
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CHAPTERISATION
The whole of the study has been presented in shapeof dissertation and for that the researcher hasdivided the entire study into five chapters and thesechapters are arranged in a sequential order.The first chapter deals with the introduction
conceptual framework, objective and methodology.The second chapter deals with a brief profile of theorganization. In addition it includes the historicaldevelopment process description,raw-materials etc.the third chapter deals with the structure andfunctions. The fourth chapter deals management indistribution system of finished product of OSIL. Thefifth chapter deals with some of the case studies on
the various aspects of distribution system offinished product of OSIL. The final and concludingchapter i.e. conclusion and suggestion made on theentire study and also at the end of this researchstudy.
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CONTENTS
Chapter-1
Page No.
Introduction
1.1 Meaning of the study
1.2 Objectives of the study
1.3 Significance of the study
1.4 Methodology
1.5 Sources of data collection
1.6 Limitation of the study
1.7 Review of literature
Chapter-2
Company Profile
2.1 Brief history of the company
2.2 Vision, Mission and objective of the company
2.3 Organization structure & style of work of company
Chapter- 3
Research Methodology
3.1 Methods of data collection
3.2 Tool or technique used
Chapter-4
Data analysis & interpretation
4.1 Data analysis
4.2 Data interpretation
Chapter-5
Conclusion
5.1 Findings
5.2 Suggestions
5.3 Conclusi
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CHAPTER 1
Introduction
1.1 Meaning of the study
1.2 Objectives of the study
1.3 Significance of the study
1.4 Methodology
1.5 Sources of data collection
1.6 Limitation of the study
1.7 Review of literature
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INTRODUCTION
A channel is the pipelie/path/route through which a product flows on
its way to the consumer
The marketing channel/distribution channels are sets of
independent organizations involved in the process of making a
product or service available for use or consumption.
Companys target is top achieve a growth of one million tonne of steel
making by utilizing captive iron ore and coal from its own
mines,leases for which they have already been allocated by the govt.
The capacity utilization in the company suffered due to both the above
reason although two kilns were in operation.
Waste heat goes emitted by the sponge iron plants release lots of
energy which is used for generation of power.
Usage of inferior quality coal available in India with high ash content
restrict capacity utilization.
Economic slow down has also affected sponge iron industry and growtof the sponge iron industry remains stagnant during this year. Quality
and quantity of raw materials i.e. iron ore & coal charged into kiln plays
a vital role in the capacity utilization of the rotary kiln which is used for
sponge iron making.
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Board of director
Mr C.J. Venugopal, IAS
Chairman, Non-Executive
Director, IPICOL Nominee
Dr. P.K. Mohanty Vice Chairman &
Mana in Director
Mr P. K. Paul Independent Director
(went for heavenly adobe
on 09.11.2010)
Mr L.D. Sahoo Non-Executive Director,
IPICOL Nominee
Mr B. K. Sarkar
Mr S. K. Khatami
Independent Director
Mr M. A. Khan
Director (Project &
Engineering
Mr M. Mohanty Whole time Director
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1.1 Review Of Literature
Steel is the metal of the new millennium. It is the world's most useful,economical & suitable building material. Icon Steel, with its continuous
improvement in the production process, modernization and introduction
of
state-of-the-art technology, has evolved as a supplier of choice who
profits,
cares and promises for a safer, stronger and better tomorrow. It is one
of
those few prestigious steel producing companies of the country to
obtain theISO9002 certification. The combination of superior technology, quality
control and experienced workforce has helped the company to develop
value added steel which caters to residential as well as industrial
requirement and
at the same time maintains good customer relationship.
The employees undergo extensive training to achieve technical finesse
and leadership qualities. These values include customer focus, trust inpeople, recognition, accountability, excellence, positive energy and
team work. The customer focus is so high that they have separate
systems in place to satisfy customers.
Osil process is now recognized as one of the leading coal based Sponge
Iron technology in the World and has been adopted for use in projects
funded by IDBI, World Bank (IFC) and the German Development Bank
(DEG).
OSIL have since put up a 15 MVA waste heat recovered based power
plant as well as a 1, 00,000 TPY Induction Furnace based steel billet
making plant operating with 70%-80% sponge as feed material.
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1.2Meaning Of The Study.
The distribution channel
Distribution is also a very important component of Logistics & Supply
chain management. Distribution in supply chain management refers to
the distribution of a good from one business to another. It can be
factory to supplier, supplier to retailer, or retailer to end customer. It is
defined as a chain of intermediaries, each passing the product down the
chain to the next organization, before it finally reaches the consumer or
end-user. This process is known as the 'distribution chain' or the
'channel.' Each of the elements in these chains will have their own
specific needs, which the producer must take into account, along withthose of the all-important end-user.
Channels
A number of alternate 'channels' of distribution may be available:
Distributor, who sells to retailers via direct marketing or brokers can
also be used,
Retailer (also calleddealerorreseller), who sells to end
customers.
Distribution channels may not be restricted to physical products Alice
from producer to consumer in certain sectors, since both direct and
indirect channels may be used.
There have also been some innovations in the distribution of services.
For example, there has been an increase infranchisingand in rental
services - the latter offering anything from televisions through tools.There has also been some evidence of service integration, with services
linking together, particularly in the travel and tourism sectors. For
example, links now exist between airlines, hotels and car rental
services. In addition, there has been a significant increase in retail
outlets for the service sector. Outlets such as estate agencies and
building society offices arecrowding outtraditional grocers from major
shopping areas.
http://en.wikipedia.org/wiki/Dealerhttp://en.wikipedia.org/wiki/Resellerhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Crowding_out_(economics)http://en.wikipedia.org/wiki/Crowding_out_(economics)http://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Resellerhttp://en.wikipedia.org/wiki/Dealer7/31/2019 Osil Marketing(Distrbution Sys)
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Channel decisions
Channel Sales is nothing but a chain for to market a product through
different sources.
Distribution System
The most important decision element in the distribution system relates
to the issue of location of the service so as to attract the maximum
number of consumers. The first decisional variable in planningthe
distribution system relates to the location of the service. In deciding
where to locate your service?
1. How important is the location of the service to the customer?
2. Is the service, technology based or people base?
3. How important are complementary service to the location
decision?
The second decisional variable in the distributional system is whetherto sell directly to the customers or through intermediaries. The
decisional variable in the distribution system is how to provide the
service to maximum no. of customers in the most cost effective manner.
There are two types of market in OSIL.
. Buyer Market
. Seller Market
Buyer Market
a) Price detected
b) Decreases prices when steel, billet demand decreases
c) Current market situation is buyer market
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Seller Market
When demand increases for product, then price up on that
moment for a particular product
In the year 2004-05-06-07 market share seller detected the price on
F-9 & road
The channel decision is very important. In theory at least, there is a
form of trade-off: the cost of using intermediaries to achieve wider
distribution is supposedly lower. Indeed, most consumer goods
manufacturers could never justify the cost of selling direct to their
consumers, except by mail order. Many suppliers seem to assume
that once their product has been sold into the channel, into the
beginning of the distribution chain, their job is finished. Yet that
distribution chain is merely assuming a part of the supplier'sresponsibility; and, if they have any aspirations to be market-
oriented, their job should really be extended to managing all the
processes involved in that chain, until the product or service arrives
with the end-user. This may involve a number of decisions on the
part of the supplier:
Channel membership
Channel motivation
Monitoring and managing channels
Type of marketing channel
Intensive distribution - Where the majority of resellers stock the
'product' with convenience products, for example, and particularly
the brand leaders in consumergoodsmarkets (price competition
may be evident).
Selective distribution - This is the normal pattern (in bothconsumer and industrial markets) where 'suitable' resellers stock
the product.
Exclusive distribution - Only lambard specially selected resellers
orauthorized dealers(typically only one per geographical area)
are allowed to sell the 'product'.
http://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/w/index.php?title=Authorized_dealers&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Authorized_dealers&action=edit&redlink=1http://en.wikipedia.org/wiki/Goods7/31/2019 Osil Marketing(Distrbution Sys)
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Channel motivation
It is difficult enough to motivate direct employees to provide the
necessary sales and service support. Motivating the owners andemployees of the independent organizations in a distribution
chain requires even greater effort. There are many devices for
achieving such motivation. Perhaps the most usual is `incentive':
the supplier offers a better margin, to tempt the owners in the
channel to push the product rather than its competitors; or
compensation is offered to the distributors' sales personnel, so
that they are tempted to push the product. Julian Dent defines this
incentive as aChannel Value Propositionor business case, with
which the supplier sells the channel member on the commercial
merits of doing business together. He describes this as selling
business models not products.
Monitoring and managing channels
In much the same way that the organization's own sales and
distribution activities need to be monitored and managed, so will
those of the distribution chain.
In practice, many organizations use a mix of different channels; in
particular, they may complement a direct sales force, calling on
the larger accounts, with agents, covering the smaller customers
and prospects. These channels show marketing strategies of an
organization. Effective management of distribution channel
requires making and
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Alternative channels of distribution
The channels of distribution can be grouped under two major headings:
For direct selling the first option involves supplying the
product to the customer using your own sales man and
arranging your own deliveries. The second option is using the
medium of post office.
The functional middleman is those intermediaries who
perform various marketing functions without having tittle to
goods. More important of them are mercantile agents like
brokers and commission agent. On the other hand, merchant
middleman obtainstitle to the goods with the view to selling
them at a profit. They take the risk involved in marketing and
work not for a certain percentage of commission but for a
margin of profit. They are whole sellers and retailers.
Direct Selling by
Manufacturers
Indirect Selling
through Middle man
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1.3 Objectives Of The Study
The objective of the study is confined only to theOSIL,Palaspanga,Keonjhar.
The main objectives of the study of the project are:- To
determine-
What activities & functions need to be performed by the
company.
Which channel intermediaries can perform these
functions. What are the service level reqirements that channel
intermediaries require from an organisation & vice-
versa.
Research Objective:
Main Objective:The objective of this project is to study the effectivenessof the distribution channel of OSIL by its distributor toretailers
Related objectives:
1) To study the effectiveness of retailer satisfaction
towards distributor.
2) To study the performance of OSIL distribution channel.
3) To study the service level provided by OSIL to its
retailers.
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1.4 Significance Of The Study
Manufacturing Industry is one of the major public sectors in India.
This industry plays a major role in the economic development of a
nation.
From the first five year itself the Government of India has emphasized
on
the Manufacturing Industry. This industry is considered as the core
industryin every economy of the world.
Channel decision refers to the managerial decision on the selection of
best routes or paths for moving goods from the producer to the
consumer. Channels of distribution are concerned not only with the
physical movement of the goods but also with their promotion,sellingand marketing control. Channels of distribution are the most powerful
element among marketing channel mix elements.
Channel of distribution help movement of goods from one place to
another and thus create place utility. They bring goods to the consumer
in a convenience value. They make it possible for the consumer to
obtain goods at a price he is willing to pay and under conditions, which
bring him satisfaction and pride of ownership and thus createpossession utility.
The present study has been undertaken because of its importance in
the professional field and also in the Academic field. As for the
professional importance is concerned during the whole study the
researcher has helped him to know various theories that are being put
into practices in an organization. Besides this, the other importance is
academic in nature as is require for a student, which is purely Academicobligation.
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1.5 Methodology
Methodology is the systematic study that guides the scientific
investigation. For the purpose of the study both case studymethod and survey method have been undertaken. By
adopting the case study method it is attempted to understand
in details the various aspects of marketing strategy which
play an important role to achieve MARKETING DEPT
objectives in maximisation of sales. .
A Research is purely and simply the framework or plan for a
study that guides the collection and analysis of data. A
research is a blueprint that is followed in completing a study.
It is a scientific inquiry. It is a process leading to discovery of
facts, how they are related, etc. A scientific inquiry leads to
growth of knowledge. Research is a systematic inquiry and
has three essential characteristics i.e. objectivity, accuracy &
continuity.
Methodology has an important bearing on the collection of
reliable information as well as on the outcome of the study.The categorization of the proposed investigation into certain
type of research, a corresponding method or methods for it
and appropriate technique for collecting and analysing data
together known as Methodology of Research.
The aim of any kind of study, whether scientific or otherwise,is to acquire knowledge, to know the truth and reality behinda phenomenon. In order to do this, some scientific and
systematic observations, classifications and interpretationsof data are highly necessary.
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1.6 Sources of Data Collection
The relevant data regarding study were collected from both the
sources, i.e. the primary sources and secondary sources.
1. Primary sources:-The following served as primary sources of
information.
(a) Management representative.
2. Secondary sources: - The following served as secondary
sources of information.
(a)Different websites
(b) Records, documents and files.
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1.7 Limitations Of The Study
However I have tried my best in collecting the relevant information
for my research report, yet there were always some problems
faced by the researcher. The prime difficulties which I have
face in collection of information are discussed below:-
1. Short time period: The time period for carrying out the
research was short as a result of which many facts have been
left unexplored as it becomes difficult on the part of the
researcher to collect all required information within a period
of one month.
2. Lack of resources: Lack of time and other resources as it
was not possible to conduct survey at large level
3. Inadequacy & non-availability of statistical data: Statistic
has not always been complete and uniform and sometimes
the management was reluctant to show the records because
of its secrecy.
4. Small area for research: The area for study was
Palaspanga, which is quite a small area to judge marketing
strategy level.
5. Executives lack interest : It is also found that some of the
executives lack interest, enthusiasm, initiative and
involvement, which in turn demotivates the researchers.
Despite all these limitation the researcher tried his level best
to bring out a bias free project on distribution system of
finished product of OSIL.
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CHAPTER 2
COMPANY PROFILE
2.1BRIEF HISTORY OF THE COMPANY
2.2VISION,MISSION AND OBJECTIVE OF THE COMPANY
2.3ORGANIZATION STRUCTURE & STYLE OF WORK OF COMPANY
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2.1 Brief History Of The Company
BACKGROUND OF OSIL:
The Comp. was incorporated as a Public Limited Comp. on 9thApril, 1979. The Comp. was promoted in the joint sector by theIndustrial Promotion and Investment Corporation of Orissa Ltd. &Torsteel Research Foundation India [TRFIs].
OSIL is located at the Palaspanga in the district of Keonjhar,Orissa. This plant was initially built to operate an allies chambers
controlled atmosphere reactor (ACCAR) process. Originally itdeveloped by M/s Allies with coal and oil, now it operates with theirown development process which is 100% coal based called OSILprocess. An undertaking of OSIL was in between industrialdevelopment corporation of Orissa limited (IDCOL) and Orissamining corporation (OMC) and the group had subsequently signedan agreement with Mineral and Metal Trading Corporation of Indialimited (MMTC) to implement a project on iron making withprovision for steel making at a later stage of a suitable location in
Orissa and OSIL has decided to implement this project.
Orissa sponge iron and steel limited was formed with a view torear up and popularize an infant technology for manufacturingsponge iron as a joint sector project with two major promoter thatis Industrial Promotion and Investment Corporation of India limited(IPICOL), which is an undertaking of Government of Orissa andTorsteel Researcher foundation of India, which is a consortium ofmini steel plant dedicated for improving the quality of steel
manufactured in the country. Sponge iron is used as a rawmaterial for making steel through secondary route by electricfurnaces. This new technology was born out of a pressure from theeconomy to find an alternative route for steel making by using noncooking coal reserve depleting very fast. Keeping in this view ofOSIL, set up its sponge iron plant in the district of Keonjhar, Orissain 1979 as the first in the commercial plant. In the country the plantwas based on technology was tested on a commercial skill,charmers corporation of USA. When this technology was testedon a commercial scale many problems were encountered. Therewas a urgent need for a commercially variable technology suiting
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to the raw material available in the country .OSIL continued itsR&D effort and finally evolved a new technology which was
patented as a OSIL process. This has made OSIL to become thefirst indigenous know how supplier competing with the foreignstalwarts like LURGI, KRUPS etc. In the Indian market. OSIL hassupplied process of technology to M/S Sun flag iron and steel,Nagpur and M/S Usha Beltorn in Jamshedpur for their spongeiron plant .OSILs next job was to popularize the use of spongeiron in electric furnaces.
It has a team of technology services personnel visiting mini steelplant to learn the process, problem and educate on the use of
sponge iron. It has also set up its own electric arc furnaces during1944-45 for practical demonstration by virtue of its preservance.Use of sponge iron and mini steel plant has increased to morethan 60% of the raw material mix. Indian economy was watchingand waiting for this infant technology to prove itself as soon as thesame was established a flood gate was opened for new unit in theeconomy. Today the country has about 200 plants of sponge ironand steel production by electric arc furnaces. It has gone up to45% of the total steel production. OSIL commissioned a captive
power plant during the year 2001 to generate 10 mw powers out ofits waste gas. Subsequently it has installed a coal fired boiler toexpand the generation capacity to 12 mw.
HISTORY OF THE OSIL
Indian Steel Scenario in early seventies was looking up withsubstantial addition in capacity in secondary sector through arcfurnace route. This required substantial quantities of scrap. At thattime all over the world, development was taking place forsubstitution of melting scrap by DRI (Direct reduced iron,commonly known as Sponge Iron). Sponge Iron productionthrough gaseous reduction was already established world-wide,but production using non-cocking coal was in its infancy.
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It was in this back drop that Tor-Steel Researcher Foundation inIndia (TRFI), a research and development organization in the field
of civil and structural engineering, with its bias for innovation, tookthe first step to promote a commercial coal based sponge ironplant based on ACCAR pilot plant studies made by AlliesChalmers Inc. of United States of America.
OSIL, was thus conceived and established in the year 1979 underthe aegis of TFRI and Industrial Promotion & InvestmentCorporation of Orissa ltd.(IPICOL, A Government of OrissaUndertaking) with a 100000 TPA coal based Sponge Ironproduction facility in the backward district of Keonjhar in Orissa.
The idea was to promote development of a backward region of abackward state of India creating employment potential for the poorpeople of this state while at the same time exploiting the mineralsfound in the region thus, multiplying manifolds the employmentpotential.
OSIL AT GLANCE:
Orissa Sponge Iron & Steel Ltd. (OSIL) was promoted in the year
1979. It was the first 100,000 TPA commercial scale coal basedSponge Iron Plant in our Country and one of the first few in theWorld. The Plant went into commercial production in 1984 withprocess technology from Allis Chalmers Corporation of U.S.A.using 80% coal and 20% oil. With increasing crude oil price, use ofdiesel oil became uneconomical. Further the process demandedhigh grade of coal, stock of which is depleting worldwide and didnot accept Indian coal with high ash content. The processtechnology was later modified and developed to use 100% coal
and patented by OSIL and is now known as OSIL PROCESS. Thestrength of OSIL PROCESS is in it's ability to use coal with highash content and low fixed carbon without compromising on qualityof product.
OSIL PROCESS is now recognized as one of the leading coalsbased Sponge Iron technology in the World and has been adoptedfor use in projects funded by IDBI, World Bank (IFC) and theGerman Development Bank (DEG).
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OSIL have since put up a 15 MVA power plant using energy fromthe Sponge Iron Plant waste gas and waste coal char & coal dust
as well as a 1,00,000 TPY Induction Furnace based steel billetmaking plant using its sponge iron feed stock and self-generatedpower for melting. The total integral steel plant is self- sufficient inpower generated from Sponge Iron Plant waste product.
OSIL have also promoted a 100% Export oriented plant forproduction of fruits and vegetable pulp and concentrate at a cost ofnearly Rs 20 Crores so that fruits and vegetables grown in thetribal area can find a ready market. There is also another
institutioncalled OSIL-TRFI COMMUNITY SERVICES LTDengaged in community development work covering health,sanitation, water, supply, education, water shed development,agriculture and horticulture services, dairy development, bio-gasbased energy development and so on.
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2.2 Vision, Mission And Objective Of The Company
MISSION: To grow as a model industry with high degree of
business ethics and serve the community by contributing to their
socio economic aspiration.
VISSION: A society built in trust & free from minimum wants.
OBJECTIVES:
Continual improvement in quality & environmental
management system & process
Employees participation & improvement to achieve quality &
environmental targets.
Commitment to ethical business process.
The Comp. proposed to associate with a joint effort with the State
For processing fruits & vegetables grown around the plantsite areas & districts, primarily for export purposes.
The Comp. also associated in assisting the promotion oflarge pig iron unit in Orissa from where it hoped to getsufficient hot meal to blend with its own sponge to makebillets.
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In 1995 - The Comp. proposed its second phase of expansionfor setting up 9 MW powerplant using waste heat of kiln.
The Comp. undertook to set up a separate Comp.together with an international Comp. for manufacture ofsteel billets at Patna, Bamra, district Sambalpur, Orissathrough sponge iron waste heat & waste coal power -electric furnace & continuous caster route. The projectenvisages setting up a project to manufacture lightsections in a rolling mill complex with an installed
capacity of 3, 00,000TPA.
The Comp. undertook to set up a one million tonne capacity ironand steel project in association with State Government.
Orissa Sponge Iron and Steel firmed its plan for setting up of aone million ton integrated steel plant, reports Business Line.
The company is also believed to have received environmentalclearance for its iron ore mines. The estimated reserves of ironore mine is 130 million tons said to be worth on a conservativebasis over Rs 750 billion.
The company has also obtained coal mining lease in the Orissaworth over Rs 100 billion
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2.3ORGANIZATION STRUCTURE & STYLEOF WORK OF
COMPANY
Steel sector represents around Rs. 90,000 crore capital& directly
provides employment to over 5 lakh people in the country. The
Indian steel sector was the first core sector to be completely free
from the licensing regime and the pricing and distribution control.
The Indian steel industry comprises integrated steel
plants in the primary sector using BF-BOF route of iron and steel
production.
The secondary sector constitutes Electric Arc
Furnaces/Induction Furnaces, pig iron/sponge iron.
Organisation mainly attention on the structure and process of
allocating jobs so that common objective can be achieved. The
organisational chart reveals that the people employed and network
of the relationship among them. It shows the direction ofdelegation of authority and fixes responsibility for accountability. It
helps to stream line the communication system. Management not
only confine to industries, factories but also extend to shop
business enterprises and so on. It is another term and its offspring
are production and management, personnel management and
business management.
In organisational structure the superior and subordinate
relationship are defined organizational chart which are formal
documents that indicate the chain of command and the title that
have been assigned to the managers and other personnel. The
chart guide to official relationship. Organizational chart indicate
employees location and position in the hierarchy and their
relationship within a formal organization.
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The chart is explained below:
BOARD OF DIRECTORS
CHAIRMAN
VICE-CHAIRMAN CUM MD
COOCEO - CMO
GENERAL MANAGER (GM)
SENIOR DGM
ADDL. GM
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DGM
SENIOR (SR.)
MANAGER(MGR)
ADDL. SR. MGR
MGR
DY.MGR
ADDL.DY.MGR
ASST.MGR
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SR.GF
S.R.G.OFF
G.F
GEN. OFFICER
AGF
AGO
SR. OFFICER
SR. FOREMAN
FOREMAN
OFFICER
ASST. FOREMAN
ASST. OFFICER
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THE OSIL PROCESS: The plant was commissioned in March
1983. The technology was new and the plant faced severe
operational problems. Oil price increase compounded theproblems further threatening the very existence of the plant.
Process developments had to be carried out in-house to substitute
the liquid proportion of the reductant, which the original process
used and to successfully adopt to the local coal qualities. This was
essential to make the process economically viable. After
painstaking R&D work a new developed dispensing with the liquid
fuel and same was popularly known in the market as OSIL
Process.
RAW MATERIAL AND PRODUCTS
The raw materials are used for SPONGE IRON-Iron ore, Coal,
Dolomite/Limestone.
BILLETS-steel scraps
STEEL SCRAPS-Sponge iron, Cook &
ferroalloys
The above raw materials are converted into finished products
of sponge iron and its by-products are coal char and billets
and its by-product is slage.
QUALITY OF PRODUCT
The sponge iron is basically produced by removing the
oxygen from the iron ore. It directly reduced iron ore oxygen
from the major part of the iron oxides having been removedthere by converting the oxides to metallic iron for better
melting results. The quality
considerations for sponge iron are
High total iron content
High degree of metallization
Low gauge, sulphur and
phosphates
Suitable size, shape and
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range.
PROCESS DESCRIPTION The OSIL PROCESS uses a long
cylindrical vessel known as reactor(The rotary kiln) for the
reduction of iron in the solid state. The iron ore and non-
coking coal along with Limestone/Dolomite is fed from the fed
from the feed end of the kiln at a calculated proportion. The
kiln rotates continuously and being at a slope, the material
flows towards the discharge end. Process air is fed radially
through a number of ports, which are spread along the lengthof the kiln.
A portion of the total coal requirement is slung into the
reactor pneumatically from the discharge end of the kiln. The
granulometry of this coal falls in the desired area of the
reactor. These help in uniform reduction and also prevent
carbon starvation in any part of the reactor. The coal suppliedacts as reductant and also sustains the process by giving
heat energy. A temperature of 1070 C is maintained to carry
out the reduction process. Various devices are provided to
monitor & control the temperature and process air. The
retention time in the reactor is about 11 hrs.during which
+90% metallisation levels is obtained.
The hot sponge iron & coal char then go to a rotary
cooled indirectly by spraying water .sponge iron at a
temperature of about 100C comes out the cooler in less than
an hour. The product is magnetically separated to take out the
char and then screened to segregate lumps & fines. These are
stored in separate product bins.
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PROCESS & PLANT DESCRIPTION
A process and material flow sheet of the DRI plant is as
given below
MAJOR UNIT/ PRESENT STATUS OF OSIL
At present manufacturing unit of OSIL at Palaspanga
comprises of
1. One rotary kiln of 150,000mt capacity per annum
producing sponge iron.
2. One billet plant with three furnaces with total capacity of
100,000mt of steel billet per annum.
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3. One captive power plant-1 having capacity of 12MW and
captive power plant-2 having capacity of 24MW.
In addition, OSIL has a Project and Engineering division
providing construction support on a contractual basis and
for supplying sponge iron to buyers.
OSIL WORKS :
Orissa Sponge Iron and Steel Limited (OSIL) is a
professionally managed engineering based companyproducing over 100,000MT of sponge iron, 100,000 MT of steel
billets and 15MVA of power. OSIL is located in Keonjhar
district not more than 40 Km of major coalfields & in the heart
of iron ore mines. The company has a turnover of Rs.1.2
billion and profits of over Rs.80 million in 2004. OSIL has been
a dividend-paying company, with a net worth of over Rs. 320
million and an asset base of Rs.1 billion. OSIL organisational
strength includes over 200 engineers and technical staff and a500 strong workforce.
COAL BASED DRI PLANT (PALASPAGA, KEONJHAR) The
Coal based DRI Plant was set up and commissioned in 1983.
A mixture of sized iron ore and sized coal along with flux
(limestone/dolomite) is charged with proportion through
material handling systems to a 4mtr.dia x 84 metre.
Longported rotary kiln. The kiln is equipped with air injectionsystem to provide air for generation of necessary heat
required for the process inside the kiln. Iron ore after due
reduction inside the kiln is discharged to a rotary cooler of 3.5
mtr.dia.x 50 mtr. long for cooling the DRI from 10000C .The
DRI (metallic) and the nonmetallics like unused coal, coal ash,
etc. discharged from the cooler and conveyed by conveyors
to a product processing building where screens and magnetic
separators are provided for separation of magnetic and non-magnetic and screening of DRI for lumps & fines. Cooling of
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the DRI is carried out by indirect cooling method, i.e. spring of
water on the outer surface of the cooler. For the main plant,
the utilities like water system, compressed air system are
provided. The off-gas going out of the kiln is passed through
a DustSettling Chamber, After Burning Chamber Boiler, ESP &
Stack.
STEEL BILLET PLANT The steel Billet Plant of capacity 60,000
TPA has been set up through induction furnace. Two
electrical systems with 4 nos. of crucible of 8.5 T capacity
each have been set up. The induction furnace uses about 75
to 80% of DRI. The induction furnace is basically melting units
for which good quality metallic are used. The plant is
equipped with 2 nos. Of 20/5T crane to facilitate charging
through magnet and liquid steel handling It was envisaged
that liquid steel from the induction furnace will be tapped at
about 16000C and will be superheated in the induction furnace
to about 16700C and after necessary homogenisation by ladle
by using purging systems taken to the caster for casting. The
caster is of 4 mtr. radius with 2-strands capable of casting 10
T metal in 25 minutes. The plant is also equipped with water
treatment plant,emergency water cooling system.
THE POWER PLANT The Captive Power Plant was planned to
utilise the sensible heat contained in the kiln waste gas. It was
estimated that from the quantity of energy available in the
waste gas about 40 tons per hour of steam could begenerated and accordingly taking a margin the Boiler was
configured for 42 tons per hour capacity. The electrical
demand from the DRI plant is more or less steady. However,
the electrical demand of the mini steel plant is fluctuating and
some times may go beyond its maximum demand of about
6300 KW. Looking into all these aspects and suppliers
standard sizes, the Turbo-Generator selection was made to 12
MW. The plant comprises the following major units: -
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1. Waste Heat recovery Boiler (WHRB)
2. Atmospheric fluidized bed combustion Boiler (AFBC)
3. Turbo Generator Units
The plant is at present operating in idle mode & has been
catering to the complete in-house energy requirements of the
DRI and the steel billet Plant. OSIL has received the host
country approval for 10MW Waste Heat Recovery based
Captive Power Plant from National CDM Authority.
The methodology submitted by OSIL has been adopted by
UNFCC as combined methodology for all projects generating
power from waste heat / gas on 10th July 2005.
OSILs Waste Heat power plant project has been validated as
a CDM project by TUV Rheinland and the project will be
registered on 14th October 2006
A shortlist of activities where OSIL (P&E) is associated is
enumerated bellow:
1 SUNFLAG IRON & STEEL CO. LTD (SISCO):
M/s Sunflag Iron & Steel Co. Ltd., have a unit of DRI
Plant having a rated capacity of 150,000 TPA built with
overseas technology. However, the plant operation
could not be optimised over a long period. In 1991
Sunflag approached OSIL to assist in optimising their
operation. OSIL studied their plant parameters,
identified the points of non-compatibility and
recommended modifications with engineering support.
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2 LOYDS METALS & ENGINEERS LTD (LMEL):
This project was conceived with 2x150000 TPA DRI Reactor
with a provision for Power Generation and Steel Making. It is
located at Ghugus in Maharastra. In its first phase of
implementation, they have installed 1x150000 TPA DRI
Reactor with all associated service units/systems by Sept.
1995. This is the first plant, built with OSIL technology. OSIL
engineered the total plant, supervised manufacturing of the
equipment, erection of the equipment. OSIL also
commissioned the plant and demonstrated the performance
guarantees. The plant is in operation since 1996 using coal
from the mines in the vicinity of plant. The coal is highly
volatile having high ash content and lower fixed carbon. The
coal is very fragile and breaks down inside the kiln. No other
DRI process can utilize this type of coal.
3 OSIL STEEL WORKS:
It is a 50,000 TPA Steel Billet Plant put up by OSIL at
Palaspanga, Keonjhar. The plant comprised of 2 nos. of 8.5T
MF Induction Furnace, 2 Strand 4m dia. Continuous Billet
Caster, 2 Nos. 20/5T EOT Crane, 2 Nos. 10T EOT Crane, Water
Treatment System and other associated facilities.
The Billet Plant is put up to maximise the melting of sponge
iron in steel making, thus set a trend for the steel industry. It
was conceived and put up by Project & Engineering Division
of OSIL, who have rendered the following services for the
project.
- Basic engineering of 50,000 TPA Steel Billet Plant with
all allied services/ facilities;
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- Procurement of plant and machinery;
- Design and engineering of civil & structural of the plant
building
- Monitoring the project activities;
- Supervision of erection and commissioning of the total
plant and equipment;
The entire engineering and execution was done by Project &
Engineering Division of OSIL. This shop has been expanded
to produce 100000 TPA steel billet with minimal investment.
4 NEELACHAL ISPAT NIGAM LTD (NINL):
It is a 1.0 MT Integrated Steel Plant, then jointly promoted by
Govt. of Orissa, OSIL and MMTC. The total project was
conceptualised by OSIL and took the responsibility of project
management. But later MMTC took over the project and OSIL
withdrew from the panel of Promoters. During its period of
association, OSIL as the lead Promoter did the following
activities to execute the project.
- Several technological search visits by a team of
professionals from OSIL, MMTC and MECON to
countries like Italy, Mexico, Canada, China for selectionof plants like Blast Furnace, Sinter Plant, BOF, large size
structural mill, Billet Caster, Rolling Mills etc.
- Finalisation of the contract with ILVA, Italy for
procurement of one no. Used Blast Furnace of capacity
of 1915m3 and dismantling of the BF in Italy.
- Arrangement for refurbishing of Blast Furnace.
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- Preparation of feasibility reports with various options
through MECON;
- Selection of site and preparation of land schedule;
- Preparation of land survey ,soil investigation and EIA
and EMP report including reports for various statutory
clearances;
- Initiation of development of infrastructures like Railway,Power, Water- supply, Mining, Road etc.
- Route survey for transport of raw material from linkage
points, plant and machinery from Paradeep Port;
- Finalisation of plant layout;
- Finalisation of Basic Engineering for raw material
handling system;
- Finalisation of raw material linkage;
- Floating enquiry for procurement of BOF, Billet Caster,
Wire Rod Mill, Power Plant civil and structural package,
LRF, Ladle and Torpedo, PCM, Sinter plant, Oxygen
Plant etc.
- Discussion with QUAD Engineering of CANADA for large
size structural mill.
5 WASTE HEAT POWER PLANT :
For proper utilisation and management of flue gas of the DR
Plant and the associated waste heat energy, OSIL conceived
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and executed a 10 MW Waste Heat Power Plant with in-house
engineering and execution resources.
OSIL executed the complete project based on actual field
studies on reactor flue gas and site conditions, sizing all
major equipment to optimum rating, designing the complete
system with inputs from major equipment suppliers,
procurement of plant and equipment from indigenous and
foreign sources, integrating and interfacing them with the
existing facilities. The plant was erected and commissioned
by OSIL in mid May 2001 and it has been operating
successfully by generating about 8 MW on average since
then. Another AFBC Boiler of 30 T/hr steam capability has
been added to produce 13.5 MW by utilizing the same TG.
6 SINTER PLANT OF NINL :
During its association with NINL as Project Management
leader, OSIL had established strong business relationship
with several Chinese manufacturing & design engineering
firms. After its withdrawal from NINL, OSIL together with
CSGC/AERIMI of China & Otto India Ltd. Of India, a Thyssen-
Krupp company, bid & successfully bagged in a global
tendering, NINLs Sinter Plant contract, which has beencommissioned since March 2004. The discreet turnkey
contract valued at 20 million Dollars (approx.) includes the
following services:
Basic Engineering services of the entire 180 sq.m Sinter Plant
for production of 1.7 million tons of BF Sinter.
Detail Engineering services for critical plant & equipment
including support structures.
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Supply of critical FOB & Indigenous equipment
Supervision of erection & commissioning
Performance Guarantee & Post Commissioning Services.
7 USHA MARTIN INDUSTRIES LTD.(ALLOY & STEEL
DIVISION) :
8 OSIL DRI 2ND LINE:
OSIL is setting up its second sponge line of 500 TPD at
Palaspangaalong with 24 MW Captive power plants (FBC&
WHRB) .The project is under final stages of commissioning.
Complete engineering, Usha Group has set up one module of
100000 TPY Coal based DRI Plant for captive use at its
Gamharia site. OSIL Process has been adopted for the
proposed plant. The plant has been commissioning in August,
2004.
OSIL provided the following services: -
- Basic engineering, know-how and training
- Design & engineering of core plant
- Design, engineering & supply of proprietary equipment
- Supervision of erection, testing & commissioning and post
commissioning services
- Inspection during manufacturing of core equipment
OSIL PROCESS was adopted by Usha Martin Ltd. after it was
approved by their financial institution, IFC, Washington &
DEG of Germany.
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After successful operation of the plant Usha Martin has
placed a contract with OSIL for the second 350 TPD DRI Plant
in May,2006.
procurement services, supervisory services etc are beingprovided by the Engineering and Project Division.
9. RATHI UDYOG LTD.Rathi udyogLtd. is setting up one
module of 500 TPD Coal based DRI Plant at its Sambalpur,
Orissa site along with 20 MW captive power plant and 100,000
TPA Steel Billet Plant. OSIL Process has been adopted for the
proposed plant.
OSIL is providing the following services: -
- Basic engineering, know-how and training
- Design & engineering of core plant
- Design, engineering & supply of proprietary equipment
- Supervision of erection, testing & commissioning and post
commissioning services
- Inspection during manufacturing of core equipment
The DRI Plant is scheduled to get commissioned in Jan 2007
and Power plant by 15thMarch07.
10. PATNAIK STEEL AND ALLOYS LTD.
Patnaik Steel and Alloys Ltd. is setting up one module of 350
TPD Coal based DRI Plant at Keonjhar, Orissa along with 15
MW captive power plant . OSIL Process has been adopted for
the proposed plant.
OSIL provided the following services: -
- Basic engineering, know-how and training
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- Design & engineering of core plant
- Design, engineering & supply of proprietary equipment
- Supervision of erection, testing & commissioning and post
commissioning services
- Inspection during manufacturing of core equipment
The DRI Plant is scheduled to get commissioned in Jan 2007and Power plant in March2007.
IRON ORE MINE :
The Iron Ore Mine is located 30 kms from OSIL Palaspanga
Plant. OSIL iron Ore mine has been granted to meet the iron
ore requirement for our existing and proposed plants.
GROUP PROFILE - COLOSSAL CONGLOMERATE.
CONVERGING COP TORSTEEL RESEARCH FOUNDATION IN INDIA (TRFI)
TRFI is a well-known institution responsible for developing
the production of high strength reinforcing steel, high
strength structural steel, ductile iron pipe production and coal
based sponge iron production in the country. TRFI is the
promoter of OSIL.It was started in 1967 basically to transfer
Torsteel manufacture technology to India Entrepreneurs.Through consistent efforts, within short periods of about
three years, Torsteel could be established through out India
as a reinforced concrete structure.
The organisation was indianised in 1976 It is well respected in
the community of
Consulting and design engineers and has published or
supported the publication of much technical and designliterature, handbooks well as sponsored basic and applied
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research over three decades. At present, 26 mini steel
plants/rolling mills are under TRFI licence in south India for
manufacturing Torsteel. TRFI diversified to offer the following
services in the field of civil engineering:
Consultancy & Advisory Services
Proof checking of Structural Designs
Structural Evaluation of Old & New structures
Restoration & Rehabilitation of Structures
Non- destructive Testing of R.C. and steel structures
Soil Investigation & Foundation DesignsLaboratory & Field Testing of Building Materials &
Components
Quality Control /Audit of Constructions
Dissemination of technical knowledge
Training programmes on computer Applications in civil
Engineering
A few of TRFIs Clients have been:
Central and State Governments
Department of Space
Military Engineering Services
Hindustan
Aeron
Railways
Singapore Information Technology Park
Reserve bank
konan
Major construction companies etc
TRFI pioneered in the production of RIBBED TORSTEEL,
HIGH STRENGTH STRUCTURAL STEELS HY-TEN, DUCTILE
IRON PIPES, and TOR-KARI.
MATERIAL TESTING:
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TRFI carrying out laboratory through out the country for tests
on building materials such as cement, aggregate, brick, block,
timber, tile, rebar, structural section, etc. as per relevant
Indian Standards.
TECHNICAL SERVICE:
TRFI provides metallurgical, technical Engineering, Process
engineering, services. To its leading licensees. TRFI also
provides technical and design assistance to consulting
design assistance to consulting engineers and consumers
with a view to promote rapid and scientific utilization of its
products through its officers located in offices around the
Country, including Calcutta, New Delhi, Mumbai, Chennai,
Bangalore and Hyderabad.
ORISSA SPONGE IRON LIMITED
OSIL was the result of the TOR group's commitment to
promoting technological advancement in steel making.
BAMRA IRON & STEEL COMPANY LIMITED
M/s Bamra Iron & Steel Co. Ltd. is being promoted by OSIL
and its associates to set up integrated steel plant in the
western & backward district of Orissa.
PRECISION TECHNIK(PVT.) LIMITED
A small precision sheet metal working unit which made
telecom panels, c ame up with the idea of using the sametechnology to produce everything from doors and windows to
car bodies ingenuity that helped us to see beyond the
visible.
TORSTEEL LIMITED
. Idea to make steel directly available to small
customera much required idea that will provide even the
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smallest customer the confidence of buying steel from a
leading steel maker.
BILATI (Orissa) Limited
OSIL along with State Government and M/s Ing. A. Rossi, an
Italian company
has set up a state-of-the-art food processing unit in the tribal
dominated area of Keonjhar to process for export in local
horticultural products, namely, tomato, mango, guava,
papaya, etc.
ORIQUA LIMITED
TRFI and UNITECH have together promoted a prawn hatchery
culture farm in the coastal belt of Orissa. The project is
unique in nature and has technological tie up with Taiwan firm
for intensive prawn farming.
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OSIL - IMPROVING THE QUALITY OF LIFE
OSIL BELIEVES THAT THE PRIMARY PURPOSE OF BUSINESS IS TO
IMPROVE THE QUALITY OF LIFE OF PEOPLE.OSIL VOLUNTEERS ITS
RESOURCES TO SUSTAIN & IMPROVE A HEALTHY & PROSPEROUS
ENVIRONMENT & SHOULDERS ITS COMMUNITY INITIATIVES AS A PART OF
ITS SOCIAL RESPONSIBILITIES.
OSIL HAS SET UP A MODERN TOWNSHIP AT PALASPANGA WITH THE
FINEST MUNICIPAL & CIVIC AMENITY, SCHOOLS, HOSPITALS, SPORTS,
COMPLEX, PARKS& GARDENS ETC.
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COMMUNITY SERVICE THROUGH OSIL-TRFI COMMUNITY
SERVICES
TARGET 30 VILLAGES IN THE SURROUNDING AREA
RURAL HEALTH CARE
PROGRAMMES
Mobility support for universal
immunization.
Trained 158 ladies for health consciousness along with
Health Education Books.
Providing each Anganwadi centre with a replenish able fund
for emergency treatment ofpregnancy.
Distribution of medicines & ORS packets during diorrhoea
seasons.
Medicines and diet to tackle
malnutrition in babies.
Supply of nutrition to underweight
children aged 6 months to 2 years
currently above 350 nos.
Deworming of children above 10
months.
Village Health Camps
In 2004-05 11 camps were conducted to
treat 3431 patients.
3 exclusive Malaria Camps were also
conducted.
Support to Primary Education
Financial Assistance for universal education.
Material assistance for repair of 6 primary school buildings.
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Financial support for sanitation and hygiene facilities in 20
schools.
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CHAPTER 3
Research Methodology
3.1 Research design
3.2 Methods of data collection
3.3 Tool or technique used
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Research methodology describes how the research
study was undertaken. This includes the specifications of
Research design
Source of data
Method of data collection and
The tools used.
GEOGRAPHICALAREA
The study is conducted in Palaspanga, Keonjhar.
PERIOD OF COVERAGE:
The duration of project work is about 35 days
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3.1 RESEARCH DESIGN Types of Business Research
Applied Research
Applied research is research accessing and using some part
of the research communities (the academys) accumulated
theories, knowledge, methods, and techniques, for a specific
often state, commercials or client drive purpose. It is often
opposed to pure research in debates about research ideas,
programs and projects.
Applied
ResearchHistorical
Research
Exploratory
ResearchExperimental
Research
Ex-post-
facto Case study
Approach
Descriptive
Research
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Historical Research
It is a procedure supplementary to observation in which the
research seeks to test the authenticity of the reports or
observation made by others.
Historical research is descriptive research that involves
describing and interpreting events, conditions, or situations
of the past. Its with all history, the purpose is to study the
past in order to understand the present, and may be to plan
for the future.
Exploratory Research
It is type of research conducted because a problem has not
been clearly defined. Exploratory research help determine the
best research design, data collection method and selection ofsubjects.
Given its fundamental nature, exploratory research often
concludes that a perceived problem does not actually exist.
Experimental Research
It is a systematic and scientific approach to research in whichthe researcher manipulates one or more variables and
controls and measures any change in other variables.
Experimental research is often used where:
i) There is time priority is casual relationship
ii) There is consistency in a causal relationship.
(A cause will always lead to the same effect)
iii) The magnitude of the correlation is great.
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Ex-Post-facto Research
It is concerned with non-manipulated variables of a
phenomenon. Much of what is generally emphasized is
descriptive research in which hypotheses are formulated and
tested while studying the phenomenon by its own setting.
Classification:-
a) Explanation
b) Historic
c) Descriptive
Case Study Approach
It is a research strategy, an empirical inquiry that investigates
a meaning within it real-life context.
Descriptive research
Descriptive research, also known as statistical research,
describes data and characteristics about the population or
phenomenon being studied. Descriptive research answers the
questions who, what, where, when and how.
Although the data description is factual, accurate and
systematic, the research cannot describe what caused a
situation. Thus, descriptive research cannot be used to create
a causal relationship, where one variable affects another. In
other words, descriptive research can be said to have a low
requirement for internal validity.
http://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Statistics7/31/2019 Osil Marketing(Distrbution Sys)
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The description is used for frequencies, averages and other
statistical calculations. Often the best approach, prior to
writing descriptive research, is to conduct a survey
investigation. Qualitative research often has the aim of
description and researchers may follow-up with examinations
of why the observations exist and what the implications of the
findings are.
In short descriptive research deals with everything that can
be counted and studied. But there are always restrictions to
that. Your research must have an impact to the lives of the
people around you. For example, finding the most frequent
disease that affects the children of a town. The reader of the
research will know what to do to prevent that disease thus,
more people will live a healthy life
It represents the conceptual structure with which research
would conducted. The function of research design is to
provide for the collection of relevant evidence with minimal
expenditure of effort, time and money.
Research purpose may be grouped into 4 categories:
Exploration/exploratory research study Description/descriptive research study
Diagnosis/diagnostic research
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Theresearchdesignusedinthisprojectbytheresearcheristhe
descriptive research design.
Descriptive researchdesign:
Determining therelationship between two are more
variables.
Itis well structured.
Itis moreeconomical, wecan gather more information.
Problems can be found after the questionnaire preparation.
Itneedsless time.
3.2 Methods Of Data Collection.
In social research, different types of methods are
incorporated for the purpose of collecting data. The
researcher while selecting the methods should take into
account not only the suitability of the methods but also the
adequate knowledge about that method
Data Collection
Primary Data & Secondary Data were collected for the study
and then analysis was made to reach a conclusion
Primary Data
Primary Data was collected from representative of the
organisation.
Secondary Data
Secondary Data on the organization was collected from
various secondary sources like records, files and official
documents & website of the organization.
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The data collected was classified for presentation.
3.3 Tools And Techniques Used.
Procedure
As it include both primary & secondary research, all the data
is selected after rigorous analysis of articles from
newspapers, magazines and internet & employees.
All the research collected is done by professional analyst
across the world and by the representatives of the
organisation is compiled in this project to understand the
financial and business impact of merger and acquisition more
effectively.
o Pie-Chart Analysis
o Bar-Diagram Analysis
o Swot Analyse
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CHAPTER 4
4.1 Data analysis
4.2 Data interpretation
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4.1 Data Analysis
DATA FOR THE YEAR 2009-10 & 2008-09
Particulars of goods manufactured:
2009-10 2008-09
a) Installed capacity
Sponge iron (M.T)
2,50,000 2,50,000
Steel billet (M.T)1,00,000 1,00,000
Power (M.W)
24* 12
( *12 M.W power plant commenced power generation
from 28.10.2009)
b) Production :
Sponge iron (M.T)
129,385 105,284Steel Billet (M.T) 19,408
25,332
Power (KWH)
77,902,731 49,552,719
Turnover:
2009-10 2008-09
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Quantity(MT) Value (Rs/lacs)Quantity Value
Sponge Iron (M.T) 99,379 14,134.53
75,353 14,174.78
Steel Billet (M.T) 19,616 4,015.88 25,197
6,727.05
Power ( KWH) 25,043,584 811.60_ _
--------------- ------------
18,962.01 20,901.83------
--------- ------------
Company is using its own sponge iron as raw materials in theBillet unit along with scrap. The quantity consumed internallyis not shown in the turnover.
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SWOT ANALYSIS(OSIL)
STRENGTH
The company is an existing profit making oneand
ISO 9001:2000 and makingannual cash
generation.
Promoters are resourceful. The promoters
shallbring in sufficient funds out of
theircontribution before their
availingdisbursement. The company has
alreadystarted investing in the project
Saving in transportation, handling,administrative
overheads, marketing and collection expenses
Asias 1stsponge iron technology.
Best human resources are available.
Raw materials like Sponge Iron, Ingots etc.
areavailable from associate company and
ownplant respectively.
Available infrastructure facilities like land,power,
telephone, water, road, etc.
National award holder of Small
WEAKNESS
Lack of availability of raw materials.
Fluctuating selling price of sponge iron and
metallic scrap
Increase in overhead cost because of
decrease in production.
OPPORTUNITIES
Diversification into structural steel, power plant,
DRI plant etc.
Per capita consumption of the steel in India yet
still very low and governmental efforts on
infrastructure development is expected to
generate demand which wil be eventually lead to
setting up to integrated steel plant in India.
Near future cost of steel will be increased in India.
THREATS
A few rolling mills at Padampur(Keonjhar),
and many more similar companies shall
provide competition.
Iron ore mining and coal block is not
available to the company.
Price of sponge iron is sensitive to demand
supply position.
Rise in the cost of iron ore and coal
combined with steel has squeezed the
margin.
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The major competitors of Osil are
Tata sponge iron & steel ltd.
Shree metalics
Pattnaiks minerals
Crackers india pvt ltd
Kusum power ltd.
JISL Mesco
List of the company in which directorship is held (excluding
in foreign Companies, private limited companies and section
25 company)
Kalinga Steels (India) Ltd.
Neelachal Ispat Nigam Ltd.
Bamra Iron & Steel Co. (India) Ltd.
Bamra Sponge Iron & Steel Ltd.
Torsteel Ltd.
East Coast Steel Ltd.
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4.2 Data Interpretation
(1) Raw material consumed
In OSIL 46.3% iron ore, 42.4% coal (sponge production),
4.94%coal (power production), 1.56% limestone & dolomite,
4.38%sponge iron(internal consumption) and 0.42% other raw
materials are being consumed by the company in the year
2009-10. While consuming all these raw-material total costs
incurred are Rs. 13,221.61(in lacks)
Raw material consumed
iron ore
coal(sponge production)
coal(power production)
limestone & dolomite
sponge iron (internal
consumption)
others
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(2) Particulars of goods manufactured(production).
From the above bar-diagram,we came to know that OSIL dealsin manufacturing 3 type of different raw material i.e., sponge
iron, steel billet &power. Among all these power are
manufactured in large qty and company is using its own
sponge iron as raw material in the Billet unit along with scrap.
The total quantities of goods consumed are78,051,524. But
power are consumed in more quantities i.e., 77,902,731
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
sponge ironsteel billet
power
production
production
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(3)Particulars of goods manufactured (installed capacity)
0
10
20
30
40
50
60
70
80
90
100
sponge iron steel billet power
installed capacity
production
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(4)HOW MANY DAYS AFTER ORDER BOOKING DO YOU
GET THE DELIVERY?
According to the above figures 52% of respondents said that
they are getting their ordered products after 1 month and 17%
of respondents in 20 days. So it suggests that delivery system
is good.
11%
9%
17%
52%
11%
10 days 15 days 20 days 30 days more days
No. Ofdays
Respondents %
10days 6 1115 days 5 920 days 9 1730 days 28 52
moredays
6 11
54 100
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(5)HOW DO YOU RATE AVAILABILITY OF PRODUCTS
&PACK SIZE AS PER YOUR REQUIREMENT?
respondents %very happy 15 28%satisfactory 30 56%
unsatisfactory 6 11%Poor 3 5%
54 100
From Above Figure it is clear that 56% and 5% of the
respondents said that the available of the products is
satisfactory and poor respectively. It suggests that most of
the respondents are getting the products what they ordered
as per their requirement.
very muchmay be yes
may be no
never
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(6)HOW HAPPY ARE YOU WITH THE COMPLAINT
RESOLUTION?
respondent %very happy 17 31%Satisfactory 25 46%unsatisfactory 9 17%Poor 3 6%
54 100
From the above figure, 17 % and 31% of the respondent ratedunsatisfactory and poor complaint resolution. So theconclusion is that most of the respondents are unhappy withthe complaint resolution.
31%
46%
17%
6%
very happy satisfactory unsatisfactory poor
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(7)ARE YOU WILLING TO INCREASE BUSINESS WITHORISSA SPONGE IRON & STEEL LMTD.FROM YOUROUTLET?
From the above figure, all most 92% of the respondents saidthat they are willing to increase business with OSIL from theiroutlet.
very much
may be yes
may be no
never
respondent %very
much 3 6%may be
yes 45 92%may be no 5 0%
never 1 2%
54 100
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CHAPTER 5
Conclusion
5.1 Findings
5.2 Suggestions
5.3 Conclusion
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5.1 Findings
1) The company is an existing profit making one but the
service level of OSIL is not up to the mark.
2) The delivery system is good, because 52% of respondents
said that they are getting their order within 1 month.
3) The retailers are getting products that are ordered but that
are not up to the mark as 56% of respondents said that
availability of the products are satisfactory but not good as
per the requirement.
4) The retailers are not very happy with the complaint
procedure as 17% & 31% of the respondent rated
unsatisfactory and poor. But still 46% & 31% of the retailers
are happy & satisfy with the complaint procedure.
5) All most 92% of the respondents said that they are willingto increase business with OSIL from their outlet.
9) The process of setting claim on expired/damaged productsis very poor. 96% of the respondents rated poor claimsettlement procedure.
10) The time taken to settle claim is very poor. Faulty claimsettlement policy almost all(98%) retailers told that OSIL takesmore than 3 weeks of time to settle claim on expired/damagedstocks.
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11) OSIL deals in manufacturing 3 type of different raw
material i.e., sponge iron, steel billet & power. Among all
these power are manufactured in large qty and company is
using its own sponge iron as raw material in the Billet unit
along with scrap. The total quantities of goods consumed are
78,051,524. But power are consumed in more quantities i.e.,
77,902,731.
5.2 SuggestionsThe company sells its products on cash basis mostly whereas
themajorprocurements of raw materials are on 30 days credit
basis. Thenecessary steps have been taken by the company
to reduce the inventoryholding period. The intend for
procurement must be done in such a way so that items
should beavailable in minimum stock at right time. The items
available should be accessible to all through computers. All
the concerned departments can access the software oninventory of raw material and spares. So all care should be
taken to reduce unnecessary inventory holding and resultant
consequential loss to the company.
I know that it is a profit making organization still it has to
focus on retailers satisfaction.
The major areas to be focused are to rectify faulty claim
policy i.e. there must be a good team who can take a
good care of these problems. Organization is not
focusing on these issues and not only its loyal
customers are decreasing but also its perception about
the organization changing towards negative.
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As we know that for a product to be successful two
things must be there. They are availability and quality ofthe product. The availability of he products are
satisfactory. Ifquality is also not there then your
competitor will have the advantage. The nearby
competitors of OSIL are Tata sponge iron & steel ltd.,
Shree metalics &JISL which has goodquality &
availability coverage. And they all are strong competitor
of OSIL. So it needs focus more on the quality of the
product.
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5.3 Conclusion
To conclude, we can say that Unit OSIL has continued to take
on the competition, in spite of slowdown in the overall
performance.As profit making is the only objective of the
business, the factor that plays a major part is the process of
profit making is satisfaction. As theory of satisfaction says
that if the actual performance is equal to expected
performance then the customer repurchases. If the actual
performance is less than expected performance than the
customer shifts brand. If the actual performance is greater
than expected performance than the customer becomes loyal
customer.
By implementing my above recommendations if the
company gets benefits than my objective of the project is
achieved.
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References
Sites used for references:o Osil website,www.osil.co.in
o www.orissasponge.com
o www.google.com
o Website ,www.esnips.com
Journal
o Annual report 2009-2010
o Marketing Management and Principles BOOKS
o I .M Pandey,2005,Financial Management, New
Delhi, VikasPublication.
o L.S. Porwal ,2001, Accounting Theory and
Introduction
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