A Final Project Report On HR POLICIES IN JSSL LIMITED

Submitted To PUNJAB TECHNICAL UNIVERSITY JALANDHAR

In the partial fulfillment of the requirements for the Award of the degree of

MASTERS OF BUSINESS ADMINISTRATION (MBA)

Submitted By SUNIL KUMAR 94112235760 +91-7307006207

Project Guide Ms Munisha

Lecturer in Management

SESSION (2009-2011)

Baba Farid College of Management andTechnoloy DEON, BATHINDA

CERTIFICATE I

This is to certify that the research project entitled, HR POLICIES IN JINDAL

STAINLESS STEEL LIMITEDsubmitted for the degree of Master of Business

Administration in Finance of the Punjab Technical University, Jalandhar, is a bonafide research work carried out by SUNIL KUMAR (Roll No.94112235760) under my supervision and that no part of this research project has been submitted for any other degree. The assistance and help received during the course of investigation have been fully acknowledged.

Ms Munisha ( Project Guide)

CERTIFICATE II

This is to certify that the research project entitled submitted by SUNIL KUMAR to the Punjab Technical University, Jalandhar, in partial fulfillment of the requirements for the degree of Master in Business Administration in the Specialization in Finance has been approved by the External Examiner along with Head of the Department after an oral examination of the same.

__________________ (External Examiner)

Ms.Deepika Bansal
(Head of the Department)

Preface

We can not achieve anything worthwhile in any field of knowledge solely on the basis of theoretical knowledge from books to order to achieve practical, positive and concrete results, the classroom learning needs to be effectively wedded to the reality of the situation outside the classroom. Project work is conducted as an integral part of a management course. It provides an opportunity to apply the theoretical aspect in practical. It gives an excellent opportunity to a student to apply his ability, capability, interest, knowledge, brief reasoning and mantle by giving a solution to the assigned problem, which reflects his caliber. Today, each and every organization wants efficient and effective work force. They want their employees to be sincere, involved in the work and attached to the organization that is why they want committed people. Therefore, there is need to study what exactly commitment means? How people view it? What are the variables related? So keeping in the mind above mentioned scenario, I decided to do a project on HR Policies in Steel Industry. Employees are the backbone of any organization. When they join an organization, they bring with them a set of needs, desires and past experience that combines to form job expectation. Job satisfaction expresses the amount of agreement between ones emerging expectation and requirements that the job provides. So it is very necessary to know about the HR policies of the

organization to achieve the job satisfaction level of the employees. Based on the findings I have compiled this report. I (SUNIL KUMAR) have prepared this project as an essential and obligatory part of the course curriculum of my M.B.A program. I have tried my best to make my project a success.

Index

Declaration Certificate Preface Contents

Chapter 1 : Introduction Significance of Study Review of Literature Conceptualization Focus of the Study Objectives of the Study

Chapter 2: Research Methodology Industry profile Profile of the Organisation Research Design Sample size and techniques Data Collection

Data Analysis Limitations of the Study

Chapter 3: Micro Analysis

Chapter 4: Macro Analysis (Inferences & Interpretations)

Chapter 5: Summary and Recommendations

Bibliography

Appendices

CHAPTER 1

INTRODUCTION

HR POLICIES Policies are the very important aspect for any organization. It is a tool that helps an organization for better functioning. These involve managing the relationship between the top management as well as lower management. The goal of HR Policies is to ensure that the firm is able to continue its operations. And that it has sufficient to satisfy both maturing short-term debt and upcoming operational expenses. Management should use a combination of policies and techniques for the management of HR policies. These policies aim at managing the work balance according to requirement. In HR Policies we can include the following.

Recruitment Selection Induction Training and development Compensation system Leave policy Welfare policy

Recruitment:

Placing the right person at right place at right time is called Recruitment. Recruitment policies at Jindal Steel Industry Ltd. a) Recruitment will normally be done against vacancies that occur due to the following reasons: i. SeparationResignation/ Termination/ Dismissal/

Retirement death ii. Expansion/ Reorganization of Companys business /

operations b) Vacancies in all Departments will be filled after prior written approval of the Managing Director. c) Prior written approval of the Managing Director will also be required even the vacancies are within the provision of the approved Manpower. d) All vacancies to be filled from outside will be notified to the Employment Exchange. e) Vacancies will be filled through Promotion/ up gradation/ relocation out of the existing employees. Or Employment Exchange Or Placement Agencies/ campus Interviews

Or Advertisements f) The following considerations will weigh in preparing shortlists of candidates in recruitment Candidates within the Organization who could fill the vacancies on merits should be considered on priority. Active list of Applicants in the Company will be scrutinized.

Selection: To choose the right candidate from a pool of applications is called Selection. Selection policy adopted by the company The following weightage will be given in the final evaluation:Factors Qualifications Relevance of past experience Interview
a.

Weightage 25% 25% 50%

The selected candidates will be notified promptly. Candidates not selected will be sent regret letters.

b.

c.

Candidates who were very poor will be informed regretting the

companys inability to find an opening appropriate to their capabilities.

d.

Candidates who were very good but not suitable for the position for

which interviewed will be informed that the selection committee found them good but not suitable for the post for which they were considered and that their application is being kept on the active file and will be in touch should a suitable opening exist in future. Appointment Letters All candidates found suitable for appointment shall be issued Letters of Intent (Employment Offers). Appointment Letters shall be issued under the signature of Authorities as under:-

CATEGORY Workmen Staff Executives/ Manager Officers

AUTHORIZED SIGNATORIES Factory Manager/ General Manager Executive Director/ General Manager Managing Director/ Executive Director/General Manager Executive Directors/ General manager

Following testimonials and documents must be on the candidates file before issuing the Appointment Letter: a. b. Medical Fitness Certificate from Companys Doctor. Authentic proof indicating the Date of Birth (School Leaving

Certificate). c. d. Copies of Certificates of Educational Qualifications. Copies of Certificates of experience from previous employers.

e.
f.

Copy of relieving Certificate from the immediate past employer. Companys Application Form duly filled in. Three passports sized colours photographs. Last ESI Membership No. wherever applicable. Last Provident Fund Account No. wherever applicable. Salary/ Income Tax Certificate from the last employer(s) along

g. h. i. j.

with PAN No. k. Antecedent Verification from the Referees/ past Employers

indicated by the candidate in his/ her Application Form. Appointment Letters will be prepared on a standard format designed by the HR Department. Documents and forms to be filled by the employee at the time of joining.
a.

Declaration/Nomination form under the Employees P.F AND

Miscellaneous Provisions Act, 1952. b. c.

d.

Declaration Form under Employees State Insurance Scheme. Nomination form under Payment of Gratuity Act, 1972. Declaration of dependant family members for notification to Insurance

Company For coverage under Med- claim. Probation All employees are initially kept on probation for a period of six months, which may be extended for a further period of three months, at the sole discretion of the Management. Total period of probation shall, in no case, extend beyond one year.

Confirmation On receiving satisfactory reports on progress during probation period,HR Department will obtain necessary approvals and issue letter of confirmation to the probationer on expiry of probation period. Compensation Policy: Objective:To provide a uniform, stable and reasonable competitive compensation to all the employees of the company. Compensation- For Staff, Officers and Executives:Company policy; Compensation package for above category of employees comprises of Basic Salary and allowances. Procedure For Staff and Officers, there is a well defined guiding scale. a. Computation of salaries/ wages for Workers/ staff & Officers

Executives/ Managers is done by the HR Department b. Statutory obligations like taxes, provident Fund. ESI etc. and

other deductions as permissible and payment thereof to the respective authorities is organized by Accounts Department. c. Annual revision of Basic salary for the all the employees will be

undertaken as per performance Appraisal policy of the company.

d.

The company has made arrangement to open individuals salary

Account in ING VYSYA Bank where they have been given ATM Cards & their ATM counter is in Factory premises.

House Rent Allowance:All executives are entitled to House Rent Allowance at the rate of 50% of their basic salary Officers & Staff are paid House Rent Allowance at the rate of their basic salary. Official Duty Conveyance:a.

All the Executives/ Officers/ Staff using their own vehicle for official

work take claim for reimbursement of conveyance expenses along with authorized official duty slip at the rates given below: i) Scooter/ Motorcycle ii) Car b. c. @ 1.80 per kilometre @ 4.20 per kilometre

Mode of calculation- Rate X No. Of kilometres= claimed amount Reimbursement of such Conveyance expenses should preferably be

claimed once in a month along with Toll Tax & Parking Fee, if any. Car maintenance:All companys Cars are maintained and serviced at authorized service stations/ workshops in different cities at Companys Cost.

It is the responsibility of the concerned Executive provided with Company Car to maintain it in good, working and road worthy condition.

Telephonic Policy: To communicate with their employees at any time company provides the facility of the telephone. By providing this facility company also giving a good communication atmosphere. Some Executives have been provided with Mobile Phones depending upon their assignment subject to monthly limits as per their respective Grade can claim (Mobile phone) bills within the entitlement as given below in proscribed format:G.M. and above Sr. manager Manager Officer Other Staff Salary Advance :All employees are entitled @ 80% interest free salary advance and it can be recovered in 3-4 equal monthly instalments from their salary/ wage. Rs. 1500/Rs. 1000/Rs. 750/Rs. 500/Rs. 375/- or 325/- as application

Social Security Policy :Gratuity The object of providing a gratuity scheme is to provide retirement benefit to employees who have rendered long and unblemished service to the employer and thereby contributed to the prosperity of the employer. Gratuity as paid in lumpsum as per the Payment of Gratuity Act, 1971 and rules framed there under.Gratuity is payable to an employee on his separation from the services of the company, after he/ she has rendered continuous service for not less than five years:a. b. c. On his superannuation; or On his retirement or resignation; or On his death or disablement due to accident or disease (five

years continuous service condition is not applied) For the purpose of calculation of gratuity, the salary last drawn is taken into consideration. Procedure: a. b. Salary/ Wages X Total days payable under gratuity X 1/26. HR Department will calculate the Gratuity amount and inform to

Accounts Department to release Gratuity payment. c. Gratuity must be paid within 30 days of the last working day of the

separating employee subject to fulfillment of the requirements. Provident Fund:-

All the employees are covered under the Provident Fund Scheme, framed under the Employees Provident Fund and miscellaneous Provisions Act, 1952, those who are getting salary/ wages (Basic + D.A.) up to Rs. 6500/- p.m.

Rate of Contribution:12% of salary/ wage from employee and 12% employer (8.33% pension account & 3.67% EPF account). Attribution @ 0.5% & admin charges Pf @ 1.10%, EDLI admin charge 0.01% of the whole bill (Basic + DA). Leave Policy: The Executive/ officers and Staff of the Company will be governed by the following types of leave Earned Leave a. All the Executives/ officers and Staff shall be eligible Earned Leave in

accordance with the Factories Act.

b.

The unveiled EL standing to the credit of an employee as on 31 st

December each year may be carried forward and accumulated upon a maximum for 30 day in case of Executives and officers & Staff, beyond which it will encase. Extra Ordinary Leave

The Company, at its own discretion, will grant extra-ordinary leave with or without pay for prolonged sickness, studies, or for other justified reasons to the employees subject to the condition that he/ she has exhausted all other leave to which he/she is entitled.

Sick Leave
a.

Employees, who are in service of the company as on 1 st January

of the financial year; shall be credited with a SL of 7 days to be availed during the subsequent twelve months on account of sickness.
b.

SL for 3 days or more should be supported by a Medical / fitness

Certificate from a Registered Medical Practitioner, who treated/ examined the employee. c. A leave application must be submitted immediately on falling

sick with a medical Certificate, as it would not be entertained later without sufficient justification. d. SL in excess of the accumulation limit will lapse and will not be

the subject matter of any compensation. Casual Leave An employee who is in service of the company as on 1st January will be eligible to avail of CL for casual purposes for nor more than 7 days in a financial year. CL will not be allowed more than 2 days at a time. Short Leave

All the officers and staff are entitled to short leave of maximum two hours a day for personal work and subject to four hours in a month for which no salary is deducted. Maternity Leave Maternity Leave shall be as per Maternity Benefits Act, 1961 as amended from time to time. Leave Roster The HR Department/ in-charge shall also ensure that too many Executives, Officers and Staff are not on leave at the same time in a particular month. Leave Rules- Workers a. Those workmen who have actually attended duty up to 240 working

days in a calendar year will be allowed one days Earned leave fir every 20 days of work performed by them during the calendar year. b. The operating rules regarding granting of privilege Leave, wages for

leave period etc. will be governed by the Holiday falling in between Earned Leave days shall not be counted as Leave days.
c.

Privilege Leave will be encased on retirement/ resignation/ termination

of the following basis:Casual Leave:a.

All workmen shall be entitled to seven days Casual Leave with

wages, during one calendar year from 1st January to 31st December.

b.

The principal of earns and avails on pro rata basis shall apply.

Casual Leave shall not be granted for more than two days at a time.

Transfer And Separation Transfer:Services of all the employees are transferable. Employees may be transferred from one Department to another Department from one establishment to another establishment. Transfers normally take place on account of following reasons: a. b. c. d. Vacancies arising out of separation of existing employee Organization Restructuring Reorganization of companys business Closure of an establishment

Separation From Service:An employee may cease to be in the employment of the company for any of the reasons like Resignation, Termination, Retirement, Death, Dismissal etc. Separation Procedure:-

After issuing a formal communication to the separating employee, HR Department / Company Secretary Will along with a copy of the said letter give following details to the Accounts Department i. ii. iii. iv. Leave encashment amount payable of the separating employee Salary/ Wages amount payable of the separating employee Any other recovery/ dues against separating employee Gratuity Application form from the separating employee

Settlement of Accounts: On separation due to any of reasons mentioned above, employees final accounts will be settled only after he/ she has cleared his/ her dues with the company. Following are some of the critical formalities which must be complied within the period specified below: 1. Full and Final Settlement:

(Salary + Encashment) 2. Holidays:All the employees of the company are entitled to National and Festival Holidays, as per rules applicable in the October each year, Festival holidays are declared as per State/ Regional customers and traditions .While National Holidays are three in number and are observed on 26th January, 15 August and 2nd October each year. Shifts:Payment of Gratuity: within 30 days of date of leaving.

There are following types of shifts in the company:-

SHIFT First Shift General

TIMING 8.00 am to 5.00 p.m. 9.00am to 6.00 p.m.

CATEGORY Finishing All

Training and Development:Training & Development of employees is an essential activity for any organization to ensure its entrepreneurial superiority and excellence in its field. Training & Development focuses on ensuring the timely availability of qualified and motivated employees with requisite skill sets to discharge their existing responsibilities, to take up higher responsibilities and to fill up the Competency gaps by continuously developing their skills and attitudes. The company objectives on Training and Development are: a. b.
c.

To bridge the skill and competency gaps To create and maintain excellence oriented work environment To develop employees skills so as to successfully meet the challenges

of competition d. Retraining of employees to impart new skills required to fight

obsolescence and to perform under changing business conditions. Training Input:-

Training inputs are given as under:a.

Training for existing employees based on needs and requirements Induction training for new entrants Training for re-designated/ transferred/ re-located/ promoted

b.
c.

employees, keeping in view there new assignment, if required d. Attitude/ management development

Presentations:All the employees, other then workers, who have attended external training programme, have to give two presentations on the training programme attended by the employees.First presentation is held within ten days and second within the fifth day of the month of training. Performance appraisal:Objective:a.

To provide a platform in which managers discuss the team

members performance in their current role. b. Identify training/development needed in order to be effective in

the current role. c. year. 360 Degree appraisal for executives:Discuss how the team member sees his role over the next one

All the Executives of the company are appraised / assessed through 360 degree appraisal system.360 degree appraisal has been brought to practice very recently. Once 360 degree appraisal is implemented successfully, it will further be introduced down the line of officers and so on. Procedure:(a) Companys business goals for the year are finalized by the MD and are informed to all department head. (b) Managing director circulates the companys business goals to all so that all executives may prepare their personal objectives. (c) All executives are required to prepare the objective of their subordinates. (d) All the executives are required to fill up their self appraisal and ratings in the prescribed format provided by the HR department. (e) Self appraisal and self ratings are required to be submitted to the MDs office. (f) Each executive assessed by seniors, peers and subordinate. (g) All promotions, financial increases and other rewards are on based on 360 degree performance appraisal and achievements of agreed and finalized goals. Format of Appraisal:-

M/S JINDAL STEEL INDUSTRIES Hisar.

Name of the employee Design Deptt:Reporting To Position in organization chart Joining date

Core Functional Responsibility

Periodic objectives assigned

SIGN. Prepared by H.O.D. Date Acceptance of employee

SIGN.

SELF APPRAISAL FOR THE YEAR. (to be filled up by all staff-HOD and below) Please go through the guidelines on the reverse Name & Designation :Dept. & Place of posting No. Area/Item Target Achievement 1 2 3 4 5 6 7 8 9

Significance of the study

HR policies are helpful in further studies in future. HR policies are helpful in evaluating the functioning of the organization.

It helps in understanding the organization work culture, involvement

and satisfaction.

It helps the organization in deciding the recruitment policy. It takes better decisions regarding promotion and transfer. It also decides the incentives and pay increment. We can know about the employees involvement in the organization. We can know effective methods of training and development. We can decide which compensation package motivates the employees

a lot.

We came to know whether employees are satisfied with the welfare

policy.

Review of Literature

Mallikarjunam K (2005)- The HR policies have assumed a new shape and nature in the form of a two-way communication link between the employees and the employers. Proper communication between the assessing authority and the employees under policies are essential for gathering all the required information from the employee. HR policies that are based on a free and unrestrained approach would generate the preferred data and help to increase organizational productivity. Gupta Samita (2006), this article discuses the concept, goals and also explores several others aspects of human resource management. The literature focuses on the concept of effective HR policies in the organization. Researchers have argued in an article that HR represents twin dimensions of rationalization. The pursuits of reason in human affairs that is the process of bringing policies are pursued and rationalization as the increasing dominance of a means- end instrumental rationality. Raju and Jena (2006), this literature provides the background and description of HR policies of ONGC. A good review system can help improve communication, while allowing people to increase their own effectiveness and clarify their own jobs and responsibilities. An innovative system will not only increase the performance of the staff, but also help them work together with common goals and fewer obstacles. The current system adopted by ONGC coupled with an aggressive communication campaign has resulted in the creation of a positive work culture with a successful implementation of the new appraisal system; ONGC is setting an example for others. Gupta and Aggarwal (2007) study examined the relationship between managerial perception of the climate of participation and the perceived effectiveness of HR policies in a private sector organization in North India. It was expected that the patterns of relationship between the variable under study would be positive in the

organization. The result focused on the importance of climate of participation for increasing organizational commitment with the help of better HR among managerial personnel in Indian organization. Geetika And Pandey Neeraj(2007), the paper deals with benchmarking, which involves a search for its genesis in the basis human instinct of comparison and judgmental reasoning, Three parameters of performance are identified, namely profitability, customer service and human resource satisfaction. Using these parameters, the power sector in India is studied. Ravichandran K and DJE (2007), this article focuses on the means to improve the performance of the individual employee, which result in the overall improvement of the organization. Recently, organizations are being faced with challenges like never before. Increasing competition from business across the world has meant that all business must be much more careful about the choice of strategies to remain competitive. Organization have a better understanding of the importance of the human resource and so their focus on improving the process, the implementation skills of the appraisers as well as the appraises for successful HR, which means improving the performance of the individual employees which results in the overall improvement of the organizations performance. Joshi Rashmi (2008), this article focuses on various component- goal setting, regular reviews, annual appraisal, development process, linkage to reward system of HR policies. And consider issues for successfully implementation of HR policies with the help of current issues and best practices in HR like performance management as a strategies workforce tool, adopting year round performance management, alignment

of goals with human resource aligning business objective with other areas, adopting performance management system software. She stated well defined performance management system will enhance the image of the organization in the mind of employees while improving its performance in terms of productivity and profitability. Kumar T kiran (2008) this article focused on the following aspects of performance management system:-need for HR policies, HR in company, setting up Human Resource, designing HR policies, setting up problem is human resource, use of technology in performance management. Chkarborty Manishankar (2008) tee literature focuses on the human resource factor within an organization. Human resource manager across the globe are finding it very difficult to attract and retain talent, In such a scenario, the need for a proper HR policies has become all the more important. Companies from knowledge sectors have devised novel HR policies, which are considered benchmarks by organization across sectors.

Conceptualization
Conceptualization means to focus on the concept on which research is carried out by which we can clear the main things of report on which topic we are preparing report

what is the main concept in this report because with the help of this conceptualization part we can go through the topic as well as the industry and company profile.

Focus of the Problem

Main problem in review of HR policies is the lack of cooperation from

the employees and the workers. They do not want to give their full contribution in the research.

It is very difficult to manage the manpower planning in the company.

Most of the employees are not satisfied with the policies adopted by the company.

Due to frequent change in the govt. policies for workers and

employees, it is very difficult to set the policies in the organization.

Objectives of the Study

To Identify the technique of recruitment and selection & training amd

development.

To know employer attitude towards the compensation system & welfare

policy.

To know about the reputation of the firm. To provide suggestions & recommendations from the study conducted. To study about the major HR policies adopted by the managers of

selected firms of steel industry.

To study how consistently the policies have implemented.

CHAPTER 2

RESEARCH METHODOLOGY

Research can be defined as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is, thus an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research. Selection of methodology for a particular project is made easy by sorting out a number of alternative approaches, each of them having its own advantages and disadvantages. Efficient design is that which ensure that the relevant data are collected accurately. The researcher has to think about what procedure and techniques should be adopted in the study. He should arrive at the final choice by seeing that the methodology chosen for project is indeed the beast one, when compared with others Research Process: ---- Before embarking on the details of research methodology and techniques, it seems appropriate to present a brief overview of the research process. Research process consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps. The sequence is as follows-

Define Research

Review concept and theories

Formulate Hypothesis

Design research (sample size) Collection of data

Analysis data

Feed back

Interpret and report

Suggestion and recommendation

The term Research Methodology indicates an exhaustive and searching investigating into some accepted principles and conclusions, so as to bring into light some new and novel facts .The first step towards any research is to identify the problem and look at it objectively. One problem to be studied is decided, the steps to be finalized as follows:-

The Sample is to be surveyed as to get the reliable result.

Methods to be used for collecting required information. Interpretation of data to get the required result through an analysis. Provide the necessary recommendations and suggestions.

The methodology is based on the extensive experience in qualitative and quantitative interview methods with both workers and factory managers .The study solicits and examines HR policies and offers insight into the ethical and business perspective of the issue through a survey for its analysis .The study relied on trained interviews using a structured interview to gather a broad range of information regarding the HR policies prevailing in the organization .The study emphasizes on both engineers and senior engineers interviews conducted at JSL Plant employees . Interviews were conducted and the Questionnaires were filled between 20th June 2009 to 5th July 2009. All the Engineers were interviewed with convenience from the available list from the different departments. Onsite interviews were also conducted at random for further clear picture prevailing in the organization. The aggregate result of the interviews presents a Clear picture of the HR policies in the Organization.

Industry Profile
Steel Industry Introduction The history of Iron and Steel industry in India is nearly 4000 years old. The Iron pillars at the outskirts of Delhi prove that Indians were familiar with iron and steel even during the Vedic age. But the father of the modern Steel industry Sir Jamshedji Tata set up the Tata Iron and Steel Company (TISCO) in 1907. The first steel ingots were rolled in TISCO in 1911. This was followed by the establishment of the My sore Iron and Steel Works in 1936, later renamed as Visveswaraya Iron and Steel Works. In 1939, Indian Iron and Steel Company (IISCO), now a subsidiary of Steel Authority of India Limited (SAIL) was started. At the time of Independence, India possessed a small but viable steel industry with an annual capacity of 1.3 million tonnes. In 1951, India produced 1.1 million tonnes of finished steel. In the era of planned economy, iron and steel - a core and basic sector - received the full attention of the government and with the foreign assistance and own resources, many new steel plants were set up. Steel Ministry, at present, has 12 public sector undertakings (PSUs) including the Steel Authority of India Limited (SAIL), National Mineral Development Corporation (NMDC), Kudramukh Iron Ore Company Limited (KIOCL), Rastriya Ispat Nigam Limited (RINL), Metallurgical and Engineering Consultants India Limited (MECON).

Changes Until the 1990s, the iron and steel sector was by and large the exclusive preserve of only the public sector, the sole exception being TISCO. The new economic policy announced in 1991 was a significant mile stone which brought out a sea change in Indian iron and steel industry. In the post-liberalization era, the structure of the steel industry underwent a sea change with the advent of major steel producers in the private sector with the world class technologies and capacities. Many all India financial institutions came forward to support the private initiatives and by sanctioning financial assistance, 19 steel projects involving an investment of about Rs.30,000 crore to create an additional capacity of 13 million tonnes (mt.) per annum. Today India is the 10th largest steel producer in the world producing 27.82 million tonnes of finished steel a year. The industry represents nearly Rs.9, 000 crore of capital and directly provides employment to over 0.5 million people. The worlds largest producer of steel is China (107 mt.) followed by Japan (104 mt.) and USA (97 mt.) Production The health of the iron and steel industry is linked with the economic condition of the nation. The general slowdown of the economy and some other factors like dumping from the South East Asian countries in the last two years, have adversely affected the Indian steel industry. However, with the expected growth rate of the economy, led by large-scale investments in infrastructure and housing sectors, the iron and steel sector has shown growth. The production of finished steel has gone up by 12 per cent during 1999-2000 compared to 1998-99 while that of pig iron increased by 5 per cent and sponge iron by 2 per cent.

Exports The export performance of the Indian steel industry was very good during 19992000. Exports of finished steel increased by almost 51 per cent to 2.6 million tonnes while exports of pig iron increased to 2.9 million tonnes. International prices have started firming up, and this would ensure the continued presence of Indian steel in the global markets. Exports are also expected to take care of the increased supply of some finished steel products especially from the new producers in the country. Domestic steel prices have also firmed up in line with the international markets. This is expected to improve the bottom line of the major steel producers in the country. In the first quarter of the 2000-01, the steel sector has kept up its tempo of production and export of the last quarter of 1999-2000. Per capita consumption Indias present per capita consumption of crude steel is only 24 kg. which is very low compared to the developed and developing countries 422 kg. In USA, 417 kg. in Germany, 109 kg. in Russia and 87 kg. in China. Our consumption is less than 1/5th of the world average i.e. 121 kg. Government of India has taken a number of steps to boost up the per capita consumption of steel in the country. Ministrys initiatives Due to slow down in steel industry in the world, many steel companies in India incurred losses after 1997-98. The giant PSU, SAIL made a loss of Rs. 1574 crore.

The government recently has approved a financial and business restructuring package for SAIL involving a massive waiver of Rs.5073 crore from Steel Development Fund and Rs.381 crore from the Government of India. The other measures in the package include provision of Government guarantee for Rs. 3000 crore to be raised by SAIL for its VRS scheme and to meet its repayment obligations on past loans. SAIL has been asked in the package to initiate process of divestment in some non-core assets protecting jobs of its existing employees. With the Government initiative, the mining lease for the Kudramukh Iron Ore project has been renewed for a year and steps are being taken to get 20 years lease. The government also approved a second capital restructuring package for RINL in May 1998 converting Rs.133.47 crore in preferential capital. The company has also prepared a turn-around plan to get out of its financial difficulties. The government has been making all out efforts to help the domestic steel industry to overcome their problems.

1. Profile of the Organization

JINDAL STAINLESS LIMITED HISAR

1,1 Introduction

Late. Sh. O. P. Jindal The USD 8 Billion Jindal Group has developed into a multi-faceted organization and is one of the largest steel producers in India with 12 plants in India. In the world of business, the Jindal Organization is a celebrity. Ranked sixth amongst the top Indian Business Houses in terms of assets, the Group today is a US $8 Billion conglomerate. HISAR: 'The Stainless Steel City' was a backward area when Jindal Stainless Limited, Hisar was setup in year 1970. Jindal Organization, set up in 1970 by the steel visionary Mr. O.P. Jindal, has grown from an indigenous single-unit steel plant in Hisar, Haryana to the present multibillion, multi-location and multiproduct steel conglomerate. The organization is still expanding, integrating, amalgamating and growing. New directions, new objectives... but the Jindal motto remains the same- " We are the Future of Steel.

The group has been technology-driven and has a broad product portfolio. Yet, the focus at Jindal has always been steel. From mining of iron-ore to the manufacturing of value added steel products, Jindal has a pre-eminent position in the flat steel segment in India and is on its way to be a major global player, with its overseas manufacturing facilities and strategic manufacturing and marketing alliances with other world leaders. Jindal Organization aims to be a global player. In pursuance of its objectives, it is committed to maintain world-class quality standards, efficient delivery schedules, competitive price and excellent after sales service. The unit had begun on a smaller scale and till 1977; it had a small Arc Furnace Blooming and Slab, Plate mill and 60mm3 per hour Oxygen Plant. In the year 1979, the unit started manufacturing Stainless Steel and achieved a major breakthrough with the introduction of Argon Oxygen Decarburization (AOD). It was the first converter in the country designed indigenously through in house R&D efforts. The plant was indigenously designed to manufacture Hot Rolled Coils, Plates, Blooms, and slabs through Electric Arc Furnace. Later on, the unit started manufacturing stainless steel flat products in the year 1979. Since then, the company has forged ahead as the largest stainless steel producer in the country in its fully modernized plant consisting of 35 ton UHP electric arc furnace, slab and bloom .' casters, 40 ton ASM, LRF and hot Stickle and Tandem mill. During the eighties, the company setup new facilities to increase the product mix. Besides, by way of forward integration company set up stainless steel cold rolling mills at Hisar and New Delhi. In the beginning of 1990, the unit took up major

modernization and expansion plans which include setting up stainless steel cold rolling mills at Hisar and New Delhi. In the beginning of 1990 the unit took up major modernization and expansion plan, which include setting up of new DG sets, automation of Hot Stickle mill, Tandem mill, continuous charging of AOD and 80 ETDP oxygen plant with Argon attachment. The company has commissioned its 350 crore expansion and modernization plan which' will not only cater to improvement In quality, production capacity and reduction in cycle time, but, also helps in sustaining it's market leadership and gaining international recognition in stainless segment. Success came early to Jindals for many reasons. Says the Essar Gujarat Executive, "The Jindals know the steel market very well and have adapted their products to suit it." An equally important reason for a good looking bottom line in the early days was Mr. O. P. Jindal's penchant for in-house technology. This has served the group well, keeping investments low and checking costs. Jindal Stainless is also the most diverse company in the group in terms of both the location and products and Mr. Rattan Jindal who manages it, is dividing his time between increasing the stainless steel capacity at Hissar and finalizing the plans for green field projects to produce Ferro chrome in Orissa and stainless steel in Gujarat.

1.2 Background About the time, Independent Indias first industrialist were redrawing the blue print of commerce and industry a farming son was hand at work redrawing the print of his small business in Nalwa a village in present day Haryana. With no industrial culture behind and no worthwhile help from within the system, he started trading in steel pipes. This enterprising young man was Mr. O.P.Jindal, who gave a motto to his Steel Industry We are the future of steel. These were challenging times the economy already under year of British Misrule had suffered a near death blow by the Partition. It was easy to be disillusioned and easier still to fail. But for those who were enterprising and afraid to live. There dreams it was a time of opportunity. Lacking the expertise to start a manufacturing unit O.P.Jindal did the next best thing, and what saw him through was his strong vision and steely determination to realise it. By 1952, he was proficient and experienced enough of set up the groups first factory at liluab near Kolkata for the manufacture of steel pipes bands and sockets. Soon there after a similar manufacturing facility set up at Hisar. This period also saw the emergence of a professional culture. Jindal the proprietorship was transformed into Jindal the Organization. Jindal stainless has recorded sales growth in excess of 30% with turnover during the year crossing Rs. 2600 core. The profits have also recorded an impressive growth of 82% and are at Rs. 164 chore. The exports of $ 220 Millions during the year grew

more than 60% over previous years figures. Although major exports were made to China but also tapped new markets in Vietnam, Malaysia and other south East Asian countries, which now account for around 10% of exports.

2.Company profile

2.1 Global Position of JSL Stainless steel consumption globally has grown by 5.2% annually in the last 10 years despite 2-3 years of overall consolidation in steel and stainless steel industry. Last 10 years growth has primarily been driven by strong growth in Asia especially China and India having registered growth of 21% and 12% respectively. China was the biggest stainless importer and consumer in 2003 with apparent consumption of 4.2 MT. and an import of around 2.5 MT. 200 series is being used extensively in China in the ABC and other segment. Stainless steel industry in India is witnessing a radical change in consumption pattern with demand picking up in new segments like railways, architecture building, construction, automobile segment, and other applications like fast food chains, shopping malls, and commercial complexes. Any history dealing with the Steel Industry of India of modern times has to start with the vision of Jamshedji Tata who put India on the world map of Steel earlier than any other country in the whole of Asia.

In the Steel industry there are three major companies in India 1. Tata Iron and Steel Company 2. Steel Authority of India Limited 3. Bhushan Steel and Stainless

2.2 Approach JSL has come a long way since lts inception in 1970, but the motto of the company remains the same We are the future of steel. This motto has always been given utmost priority and the company believes in shaping the future of stainless steel market by providing and producing value added products for the ultimate end users. Jindal Stainless Limited is the most diverse company in the group in terms of both the location and products and recorded an impressive growth in sales we stand at Rs. 2015 corer with export representing 36% of the sale. The profit after taxes stood at Rs.90.15 crore. The company has also focused on new markets for its low nickel grades which is cost effective alternatives products in the market worldwide. Due to the price effectiveness of these low nickel grades the demand for these products continues to remain strong in export markets. Jindal Stainless has now Chinese office to cater to increased volume and also a full flagged office in Vietnam. The export of the company is not affected by severe SARS epidemic in Chinese markets and company was able to exceed its sales targets in these regions.

2.3 Board of Directors Sr. No.

1.

Name Savitri Devi Jindal N.C. Mathur Naveen Jindal

Designation Chairperson Director-Corporate Affairs Director s

2.
3.

4. 5. 6. 7.
8.

Suman Jyoti Khaitan Lokesh Kumar Singhal T.R. Sridharan B.D. Gupta Rajinder Parkash N.P. Jayaswal A.P. Garg Sr.Vice President & Co. Secy. Executive Directors

9.
10.

Management Team 1. 2. Bankers 1. 2. 3. 4. 5. State Bank of India State Bank of Patiala Punjab National Bank Canara Bank Standard Chartered Bank B.P. Goyal R.K. Goyal Executive Director-Projects Director Commercial

6.

ICICI Banks UTI Bank Export-Import Bank of India Bank Of Baroda

7. 8. 9.

2.4 Production Plants Keeping in view the need to modernise and expand JSL undertook a total expansion and modernisation programme. As a result not only has the production capacity increased but the quality of the products has also improved considerably making larger exporter of the company. 2.4.1 Hisar Plant ( Haryana) Jindals only integrated Stainless steel plants has an annual production capacity of 4 laces metric tons. The plant has two major operational units namely hot rolling units and cold rolling units. The hot rolling unit comprises of steel melting shops, hot rolling mills (stickle mill, Stainless mill) finishing units power plants and oxygen plant etc. The cold unit comprises of cold rolling mill and pickling lines, coin blanking lines and finishing facilities. The company has implemented environmental management system and received OHSAS 18001 and ISO 14001 certification. The company is working on for getting the ISO-9000 2000 version.

2.4.2 Vizag plant (Andhra-Pradesh) The Ferro Alloys plant is situated at Jindal Nagar, Kothavasala, Distt. Vizianagram, Andhra Pradesh. The installed Capacity is 40,000 metric tons per annum of High Carbon Ferro Chrome. Besides supplying to the domestic market, the company also exports Ferro Chrome to various developed countries, in recognition for its work in the field of exports, the company was awarded the "Export Award Regional Special Shield". The plant is also equipped with an Ultra modern testing laboratory to ensure world class quality standards.

2.5 Products Range 2.5.1 Slabs Cast in single strand slab caster of steel Melt Shop I. Liquid steel is produced through Electric Arc Furnace-ASM Converter/VOD-Ladle Refining Furnace route. 2.5.2 Blooms Cast from bloom casters both in Steel Melt Shop 1&11. Liquid steel is produced through Electric Arc Furnace-ASM Converter-Ladle refining furnace route. 2.5.3 Hot Rolled Products

As cast/ground of slabs, they are first heated and socked in reheating furnace, rolled in roughing mill to intermediate thickness and to the final thickness in the stickle mill. 2.5.4 Hrap Coils Hot Rolled Annealed pickled coils are produced after continuous annealing and pickling. 2.5.5 Hrap Plates Plates are finished after annealing & pickling or by cutting HRAP coils to desired lengths. 2.5.6 Cold Rolled Products Cold rolled coils and sheets are produced after being processed in 20 Hi-mill, continuous anneal & pickle line, slitting line and cut to length lines. 2.5.7 Blade Steel The company is exclusive producer of stainless steel for making Razor Blades and Surgical Blades in India. The plant has a capacity to produce 10,000 metric tonnes per year. 2.5.8 Customized Products JSL has developed the capability to supply customized products for critical applications. This has helped customers in their indigenization efforts.

2.6 The Pioneering Achievements In the early 60s Jindal R&D showed early promises by developing Indias first 100% indigenous pipe mill at Hisar. Until the mid 70s a huge chunk of Indias stainless steel requirements were met by imports. The challenge was to produce high quality stainless still at less than world prices. In 1979-80 Jindal were the first to develop an indigenous Argon Oxygen Decarburisation(AOD) convector- a state of the art refining process which has not only lad to drastic cult in the manufacturing cost but it has led to a dramatic improvement in the quality of stainless steel. Jindal were the first to manufacture Ferro-Chrome with 100% in house technology. Jindal Ferro-Chrome chaotic exported to countries all over the world including Sweden, Western Europe, South Korea and China. To make Deep Drawing (DD) and extra Deep Drawing (EDD) grades of steel is no mean to task. It calls for the technology of the highest order. In the private sector, Jindal were the first to master this technology. Jindal Vasind Plant (Bombay), where such steel is made one of the largest in the country. Worldwide there are just a handful of the companies who have the know- how to manufacture large diameter submerged arc welded (SAW) steel pipes. In India SAW pipes are made by this group. Jindal Steel pipes have found extensive application in oil and gas industry.

Jindal have also pioneering Indias first continuous slab casting machines and Indias first hot stackel mill to produce hot rolled stainless steel coils. For Aluminum or against the conventional slab to strip rolling method, Jindal have introduced the new generation continuous ship caster. As a result, Jindal were the first in India to introduce direct strip casting of aluminum. The list Jindal break through is also limitless. As limitation its resolve to seek and overcome challenges on a continuous bases. Thats why from the industries point of view it has become axiomatic to say-Where there is challenge there is Jindal. And if it is Jindal, it must be first class.

2.7 Quality Assurance Quality to meet the customer requirements is the 'topmost priority at Jindal Stainless Limited. Their quality, activities begin with understanding the exact requirements of; the customers and continue till the customer is fully satisfied with the delivered products and service. In order to deliver the assured quality, all the inputs including the raw material are thoroughly inspected and tested. All the processes are constantly monitored and controlled to ensure that no non-conforming in house materials passed for further processing in the plant. The finished product is cleared-for dispatch to customer only after it has passed the tests as per the quality plan. All tests are conducted in their In-house testing laboratories. Jindal Stainless Limited assures quality through a large team of Quality

specialists, who are the most important aspect of Quality System. The people involved at various functions are most important aspect of quality system. The people involved at various functions are constantly trained to keep pace with the most recent advancements in production technology, quality management and customer servicing. Also above all, Jindal Stainless Limited has a Quality Control laboratory that is equipped with modern testing and analytical equipments. In order to obtain optimum properties in stainless steel, first also provides free technical assistance to the customers and users, on right selection and effective application of stainless Steel.

2.8 The Operations JINDAL'S only integrated Stainless Steel Plant has an annual production capacity of 250,000 metric tons. An exclusive, complex for manufacturing Stainless steel for razor & surgical blades has been created. A coin blanking line has also been installed.

2.9 Stainless Design Centre The Jindal stainless design centre at new evolves innovative designs for various application by involving designers, architects & other professionals. The centre is augmenting the usage of stainless steel in value added applications for the household, office & industrial segment in the Indian market.

2.10 Main Facilities

Steel Making Hot Rolling Cold Rolling

There are two Steel Melt Shops-I & II. Steel Melt Shop I is dedicated to the production of stainless steel, slabs & blooms while Steel Melt shop II produces blooms. a) Steel Melt Shop I: This shop comprises of one Electric Arc Furnace, one ASM converter, one VOD unit, one Ladle Refining furnace (LRF), one Continuous Slab Casting Machine & one Twin Strand Bloom Caster. The shop is capable of producing 150,000 metric tones of stainless steel slabs& blooms in various grades annually. The VOD unit here ensures that the stainless steel has a very low inclusion & gas content. Stainless Steel required for demanding application by nuclear plants, space& other sophisticated applications is produced here. b) Steel Melt Shop II: The shop is equipped with one Electric Arc Furnace, one ASM converter, one Ladle Refining Furnace & one Twin Strand Bloom centre. The shop is dedicated to producing stainless steel blooms especially of low nickel variety conforming to 200

series that are hot rolled in the semi continuous Tandem Strip nail for the production of flat bars. The shop is capable of producing 200,000 metric tons of blooms per year.

Hot Rolling Hot Steckel mill converts stainless steel slabs into hot rolled plates and coils. This mill consists of a slab reheating furnace, a four high roughing stand, a four high reversible finish strand coiler. Hot Steckel Mill is capable of rolling stainless steel plates & coils up to 1500 mm width.

Cold Rolling Cold Rolling division of JSL has capacity to produce 100,000 metric tons per annum of cold rolled stainless steel flat products including 10,000 metric tons of Razor Blade & other Ferritic/Martensitic grade cold rolled Stainless.JSL is fully equipped to supply material in 20, 2B, BA, No.3, No, 4 surfaces finishes. The new cold rolling division in particular is equipped with sophisticated steel production lines to produce quality surface finishes & precise dimensional tolerances with the desired flatness.

2.11 Future Plans Of Jindals JSL announced a technical alliance with Nisshin Steel one of the leading Stainless Steel manufacturer in Japan. The collaboration is technical in scope and an agreement has been signed for a period of two years during which Nissin steel will provide Jindal Stainless technical advisory services through transfer of operation technology relating to the manufacture of stainless steel including Nissin Steel proprietary technical information and know how. Through this alliance Jindal will consolidate its position as an industry leader by acquiring operating technology for the purpose of improving the quality and production yield of Jindal stainless steel products. Jindal Stainless has announced the setting up of a Ferro-alloys and an integrate stainless steel project of in the jaipur district for the Orissa in east India. Which would start from stage to production of faro chrome stainless steel slab mastering facilitates along with power generation.

An Overview In General 2.12 Consumption Pattern & Various Applications Of Stainless Steel Stainless steel is being increasingly used for specialized applications, where the steel requires specific properties for withstanding Corrosion & mechanical wear & Tear. This is achieved by adding the alloying elements in proper proportions. While the developed world has nearly 80% of its stainless steel requirement coming from industrial applications and the remaining 20% from domestic applications, whereas the Indian market consumes 75% of the total stainless steel in domestic applications, particularly utensils and only 25% in industrial applications like automotive parts, transport, pipes & tubes. So we can say that characteristic pattern of stainless steel in western world is not applicable in India as there is a very strong bias towards household utensils & cutlery. Globally, consumption of stainless steel has doubled in past fifteen years or so, but in East Asia, it has tripled & in China, it has raised six folds from one-lac tones per year in early 1980's to over seven lac tones in 1996. In India, demand of stainless steel has increased tenfold, giving an average annual growth rate of more than 18%.

The major applications of stainless can be described below: 2.12.1 Utensil Sector Stainless steel utensils are the true consumption item in India and are used across social, economic and geographical divides. Kitchens in middle class households are dominated by stainless steel. Most storage boxes and cans, .all cooling vessels (including frying pans and pressure cookers), most sizes of serving plates, cutlery is all made from stainless steel. Stainless steel products are common wedding gifts; especially in the South that help newlyweds setup their homes. During Diwali, a very important Hindu festival, a large tonnage of stainless household items changes hands in terms of gifts. Even corporate bodies use thousands of tons of stainless as gifts for employees. Kitchen sinks and gas stove bodies: Although, very much present in kitchen, they don't share the same history of development as their counterparts in utensils. But, they have caught the imagination of Indians. Until the late eighties, gas stoves with painted carbon steel bodies and later the nickel chromium plated ones, dominated the market. The stainless steel bodies, once introduced, proved to be very popular because of their clean ability, durability and competitive price. The Kitchen sink market for stainless steel made a very modest start in 1972, but it began picking up only around 1984. Since then, especially in last five years or so,

stainless steel has set itself to beat all competitive materials including mineral resin composites, porcelain, marble, granite etc. Considering the present trends, we are sure that the future of kitchen sink market is firmly in the hands of stainless steel. 2.12.2 Processing Sector The processing sectors (chemical, oil & gas, (petrochemical, food & beverage) are all expanding and naturally require a lot of stainless steel. The food processing industry is critically important, as, unlike the developed world, India has only recently begun manufacturing products like frozen and ready to cook foods. The growth of this sector would lead to greater consumption of stainless steel increasing demand for petroleum products will require significant amount of stainless steel. Stainless steel is widely used in paper industry to make grinder, water sprays & showers, screening and dewatering equipment, cooking and washing towers, pulpier etc. The pulpier is a Critical instrument in the paper recycling industry, it is first stage equipment, which literally makes pulp of waste paper raw material and has a rotating component inside. 2.12.3 Auto Industry In auto industry, the uses of stainless steel are growing at a very high pace. The growth is associated, especially with exhaust system. The reasons for the growth are government pollution control measures and the entry of North American, European & far Eastern manufacturers into the Indian market. India has also started producing stainless steel railway coaches. Stainless steel is also used for roof packing air conditioned coaches of railways.

2.12.4 Construction & Architecture As in developed countries, India has also started using stainless steel for solid construction & beautiful architecture. But this is only in the starting stage. India has to go a long way in this field. So the demand of steel is going to increase manifold with the growth of this sector. A bridge was built in 1993-95 in the town of Schaffhausen in Switzerland crossing the river Rhine. Cognizance of the weakness of earlier designs and consideration of future repairs and disruption costs led to the use of stainless steel reinforcements in critical parts of the structure. By adopting the concept of using stainless steel reinforcement for the vulnerable skin area of the splash zones remedial treatment and traffic disruption will be drastically reduced and maintenance minimized. The critical performance requirements/ factors which led to the specification of stainless steel were: 2.12.4.1 Durability Resistance to the effects of atmospheric corrosion & dicing salts over the life of the bridge of 80 years. 2.12.4.2 Maintenance To be minimized another example is CPWD, which has used about 70 tones of stainless steel in the Parliamentary Library Building in Delhi. They have used stainless steel for anchors, hand rails, domes and library furniture.

SESA Goa Limiters corporate headquarters at Panaji - Eight storeys tall, has used stainless steel for cladding the exterior walls. Stainless steel is highly preferable for hospitals. As stainless steel is highly hygienic material and is durable, resistant to chemical reagents, easy to maintain & is aesthetic in appearance, it has also been used by many hospitals and medical institutions for paneling of operation theatre, intensive care units, wall trolley height, scrub and toilet areas for surgical Instruments, sterilizers, disposable injection needles, sterilizers, disposable injection needles, cots, bed pans, furniture etc.

2.13 Research & Development Since its inception in 1970, when the Jindal Plant was set up in Hisar, the Jindal Organization has come a long way. Starting out by being the first private sector steel plant with technology developed by its R&D division, today the Jindal conglomerate is a name to reckon with in the Indian industry. This US$ 4.0 billion multi- locational industrial giant is equipped with world class technology to manufacture products matching international standards.

2.14 A History Checked With Distinctions In these 29 years the Jindal Organization has emerged as the largest producer of stainless steel in the country. The company has the distinction of being the largest sheet galvaniser and cold rolled coil producer in the private sector. The Organizations history is indeed chequered with many such distinctions like being the sole producer of U-O-E SAW pipes in Asia (except Japan), and the only

Indian company to use the acclaimed Codex steel technology, the third in the world to do so. 2.15 The Technological Edge The hallmark of the organization's achievements and growth has been its ability to develop, adapt and adopt the latest technology, to match the demands of a dynamic and burgeoning Indian industry. Seeing doors where others see walls. At Jindal, research is a self-imposed discipline; a challenge it has pursued with a pioneers zeal. Exploring new ideas and attempting breakthrough products and processes. For instance, tracking and adopting the latest in world technology, anticipating customer needs with cost-efficient reliable solutions, and promoting engineering skill and manpower caliber. Jindals R&D investment, together with its R&D capability has given it a head start over others.

Quality control not only in the machines, but in the mind first. Perfection does not begin at the manufacturing plant. It begins in the mind. It is a challenge that Jindal has overcome through diligence and discipline and by encouraging its employees to develop a sense of pride in their jobs.

Jindal products have few peers. Both in terms of product performance and product reliability.

2.16 Jindal Group Companies

Jindal Stainless SAW Pipes Ltd. Jindal Steel & Power Ltd. JSW Steel Ltd.

Jindal Steel Company perspective:Jindal Steel is amongst the largest corporate groups in India. Jindal Group is presently a US $5 billion conglomerate and ranks fourth amongst the top Indian Business Houses in terms of assets. Jindal Steel is one of the largest steel producers in India with 12 plants in India and 2 in US. O.P. Jindal is the founder of Jindal Group. He started by trading in steel pipes in Nalwa, a village in the presentday Haryana. In 1952, O.P. Jindal set up the group's first factory at Liluah, near Calcutta for the manufacturing of steel pipes, bends and sockets. Soon thereafter, he set up a similar manufacturing unit at Hisar. In the early 1960s Jindal Steel achieved a breakthrough when it developed India's first 100% indigenous pipe mill at Hisar. In 1970, O.P. Jindal established Jindal Strips Limited and set up a mini steel plant at Hisar to manufacture coils and plates through the electric and furnace route. Since then, Jindal Steel has not looked back and has gone from strength to strength. Today, the group has developed into a multi-

faceted

organization

with

revenues

in

excess

of

US

$5

billion.

Companies of Jindal Group

Jindal Stainless Ltd.: Jindal Stainless is the largest integrated stainless steel producer in India and the flagship company of the Jindal Group. It is an ISO: 9001 & ISO: 14001 company. Jindal Stainless Ltd. has plants at Hisar and Vizag and is setting up a Greenfield integrated Stainless Steel project in Orissa with capacity of 1.6 million tones per annum. Jindal's plant at Hisar is India's only composite stainless steel plant for the manufacture of Stainless Steel Slabs, Blooms, Hot rolled and Cold Rolled Coils, 60% of which are exported worldwide. At Vizag, Jindal has a Ferro Alloy Plant with an installed capacity of 40,000 metric tones per annum.

Jindal Steel & Power Ltd: JSPL is one of the leaders in Steel Manufacturing and Power Generation in India. JSPL is the largest private sector investor in the State of Chhattisgarh with a total investment commitment of more than Rs. 10,000 crores. It is also setting up a 6 million tonne steel plant in Orissa with an investment of Rs. 13,500 corers and a 6 million tonne steel plant in Jharkhand with an investment of Rs. 15,000 chores. Jindal Power Limited, wholly owned subsidiary of JSPL, is setting up a 1000 MW O. P. Jindal Super Thermal Power Plant at Raigarh, with an investment of over Rs.

4500 corers. JSPL has also ventured into exploration and mining of high value minerals and metals, like diamond, precious stones, gold, platinum group of minerals, base metals, tar sands etc.

JSW Steel Limited: JSW Steel Ltd is a fully integrated steel plant having units across Karnataka and Maharashtra producing from pellets to colour coated steel. JSW was founded in1982, when the Jindal Group acquired Primal Steel Ltd which operated a mini steel mill at Tripura in Maharashtra. The Jindals renamed it as Jindal Iron and Steel Co Ltd (JISCO) now known as JSW Steel Limited (Downstream). In 1994, to achieve the vision of moving up the value chain and building a strong, resilient company, JISCO promoted Jindal Vijayanagar Steel Ltd (JVSL) now known as JSW Steel Limited (Upstream).

Research Design

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with combine in procedure. The current study is exploratory cum descriptive in nature. Exploratory Research Design: The main purpose of such studies is that of formulating a problem for more precise is that of formulating a problem for more precise investigation or of developing the working hypotheses from an operational point of view. The major emphasis in such studies is on the discovery of ideas and insights. Descriptive Research Design: Descriptive research studies are those studies, which are concerned with describing the characteristics of a particular individual or of a group. The research design is the arrangement of conditions for the collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. More explicitly, the design decisions happen to be in respect of:-

What is the study aboutHow a team in an organization work, how team work to accomplish the objective of the organization?

Why is the study being madeTeam being recognized as an important aspect of an organization, which contributes to the overall success of the organization?

Where will the study be carried out Where can the required data be found What period of time will the study includethe time taken for the entire process took around six weeks, which includes framing of the questionnaire, distribution of the questionnaires. Collection of it, then collection of the data and finally the interpretation of the data collected.

Sample size and techniques

Sample design: A sample design is a definite plan for obtaining a sample from a given population. Universe: Universe refers to the entire population taken understudy. Here, the universe consists of Jindal company in steel Industry. Size of sample: This refers to the number of items to be selected from the universe to constitute a sample. In this study, the sample size is fifty. Sampling Procedure: In sampling procedure the decision regarding technique to be used in selecting the items for the sample is taken. Here the technique used is convenient sampling & area sampling.

Data Collection

Data is of two types Primary data & Secondary data.

Primary data The primary data are those, which are collected afresh and for the first time and it is original and correct. Primary data are collected with the help of questionnaire & personal interviews and discussions. Out the various tools, the technique adopted here is one of the most practical and result oriented technique, popularly known as Questionnaire Technique. In a structured questionnaire, questions are definite, concrete and pre-ordained with additional questions limited to those that a necessary to clarify incomplete or inadequate answers for eliciting a more detailed response. In the questionnaire, the questions are presented with exactly the same wording and in same order to all respondents. The reason for standardization is to ensure that all the respondents reply to the same set of questions. Secondary Data Secondary data is that data which someone else has already collected and which have already been passed through the statistical process. Here, secondary data is collected from journals, magazines, annual reports and publications.

Data Analysis: After collecting the data it has to be processed and analyzed. The term analysis refers to the computation of certain measure along with searching for patterns of relationship that exist among data groups. This study involves percentage and appropriate analytical tools. Data Interpretation: Interpretation refers to the task of drawing inferences from the collected facts after at analytical study.

Limitations of the Study

A Few limitations and constraints came in the way of conducting the present study:

Due to lack of time with authority, we could not get full information

about the HR policies in the company.

We cant visit to many companies in such a short time. Due to the lack of internet facility, we could not get the data of other

companies.

Employees are not so much cooperative in giving the response of

questionnaire.

Though no effort was spared to make the study more accurate. Sample size selected may not be the true representative of the

company, resulting in biased results. This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out.

CHAPTER 3

MICRO ANALYSIS

Identification of techniques of recruitment & selection and training & development Question : According to you what is the most important factor for selection policy?

Response percentage

Qualification 30/50 60%

Past experience 13/50 26%

Interview 7/50 14%

p e rc e n t a g e 80% 60% 40% 20% 0% Qualificatio n Past experience Interview

p e rc e n t a g e

Interpretation:According to most of the employees qualification is the most important factor in selection process.

Question : Which method is adopted by the company in training policy?

On the job training Response Percentage 30/50 60%

Workshops 10/50 20%

Seminars 10/50 20%

P erc en t ag e 80% 60% 40% 20% 0% O n th e jo b ork s h o ps e m in ars W S tra inin g P erc en tag e

Interpretation:Training is given during the job session.

Question : Which recruitment policy is adopted by the company?

Options Response Percentage

On-line 15/50 30%

advertisement 20/50 40%

Institutions 15/50 30%

P erc e n ta g e 50% 40% 30% 20% 10% 0% 1 2 3 P e rc e n ta g e

Interpretation:The organization mainly gives preference to advertisement.

Employer attitude towards the compensation system & welfare policy

Question : Which type of compensation is given to you by the company?

Holiday package Response Percentage 7/50 14%

Bonus 30/50 60%

Others 13/50 26%

P erc entage 80% 60% 40% 20% 0% Holiday pac k age B onus Others P erc entage

Interpretation:Here we can interpret that the company mostly use to give bonus to its employees as a part of the compensation.

Question : What type of changes you want in Welfare policy?

Options Response Percentage

Canteen 13/50 20%

Insurance 21/50 45%

Education 16/50 35%

P e rc e n ta g e 50% 40% 30% 20% 10% 0% C a n te e n In s u ra n c eE d u c a tio n P e rc e n ta g e

Interpretation:Most of the employees want insurance policy.

Reputation of the firm

Question : Which type of social security you want from the company?

Gratuity Response Percentage 27/50 54%

Provident fund 10/50 20%

ESI scheme 13/50 26%

P e rc e n t a g e 60% 50% 40% 30% 20% 10% 0% G ra t u ity P ro vid e n t E S I fu n d s c hem e

P e rc e n t a g e

Interpretation:Gratuity is paid to the employees time to time.

Question : Do you think your HR policies helps in building good relationship between top level and lower level management?

Yes No Cant say

S34/50 5/50 11/50

68% 10% 22%

80% 70% 60% 50% 40% 30% 20% 10% 0% Y es No C ant say

S e r ie s 1

Interpretation:Yes, HR policies help in building good relationship between top level and lower level management.

Question : What are the major impacts of HR policies?

Options Response Percentage

Productivity 20/50 50%

Reduce turnover 15/50 25%

Good relationship 15/50 25%

P e rc e n t a g e 60% 50% 40% 30% 20% 10% 0% Productivit y Reduce turnover Good relationshi p

P e rc e n t a g e

Interpretation:HR policies have major impact on the productivity.

Knowledge of major HR policies

Question : Which appraisal system is adopted by the company?

MBO Response Percentage 13/50 15%

360* Appraisal 24/50 70%

Others 13/50 15%

P e rc e n t a g e 80% 60% 40% 20% 0% MBO 360* O t h e rs A p p ra is a l P e rc e n t a g e

Interpretation:Here we can conclude that company mostly uses the 360* Appraisal technique for the performance appraisal of the employees. Question : Are you satisfied with the leave policy of the company?

Yes Response Percentage 23/50 46%

no 20/50 40%

No comment 7/50 14%

P e rc e n t a g e 50% 40% 30% 20% 10% 0% yes no No com m ent

P e rc e n t a g e

Interpretation:Most of the employees are not satisfied with the leave policy, they demand more leave.

Implementation of policies

Question : Are you satisfied with the policies adopted by the company?

Yes No Cant say

S34/50 5/50 11/50

68% 10% 22%

80% 70% 60% 50% 40% 30% 20% 10% 0% Y es No C ant say

S e rie s 1

Interpretation:Here we can conclude that the most of the employees are satisfied with the policies of the company..

Question : Does Top level mgt. include your representative at the time of making HR policies?

Yes

no

No comment

Response Percentage

23/50 46%

20/50 40%

7/50 14%

P e rc e n t a g e 50% 40% 30% 20% 10% 0% y es no No c om m ent

P e rc e n t a g e

Interpretation:Most of the employees say that their representatives are included in making HR policies.

Question : How frequently your organization change the policy?

Options Response Percentage

After govt. order 13/50 25%

After 6 months 15/50 30%

Annually 22/50 45%

P e rc e n ta g e 50% 40% 30% 20% 10% 0% A ft e r g o vt . A ft e r 6 A n n u a lly o rd e r m o n th s

P e rc e n t a g e

Interpretation:The organisation mainly changes the policy annually.

CHAPTER 4

MACRO ANALYSIS

Inferences & Interpretations

There are a lot of techniques of recruitment, selection , training & development. In Jindal Stainless Limited, there are three main factors for the selection process like

Qualification, Past experience & Interview but the most important is qualification of the candidates. For providing in the company, three methods are applied On the job training, Workshops & Seminars. Out of these, on the job training is preferred mostly. For the purpose of recruitment, out of Online way, Advertisement & through Institutions, the advertisement gets the highest response. Thus most of the recruitment is done through advertisements. As per as the employer attitude towards the compensation system & welfare policy is concerned, the company offers bonus the most to its employees as a part of compensation compared to holiday package & others. Thus through the analysis, it is clear that the employees want more & more insurance schemes than canteen & education facilities for the improvement in welfare policy. There are three main kinds of social securities provided to the employees. These include- gratuity, provident fund & ESI scheme & out of these, the most demanded social security is gratuity by the employees. In the analysis that HR policies help in building good relationship between top level & lower level management, it is found that there is a good relationship between the two & these HR policies have helped a lot in increasing the productivity of the organization. Most of the employees are appraised through 360* appraisal system but some other techniques as well as MBO are also used sometimes. About 45% of the employees are satisfied with the Leave Policy of the company & 40% are not satisfied & rest 15 % have no comments.

Through the analysis, it is also known that around 70% of employees in the organization are satisfied with the HR policy of the company, around 10% are not satisfied while the rest have no comments on this. It is also found that at the time of making HR of policies in the organization, the top level management includes representatives of the employees only sometimes while they should be included at this time every time because they are also the part of the organization & may help in setting up the HR polices in the company. As far as the changes in the HR polices are concerned, the organization mainly changes its policies annually.

CHAPTER 5

CONCLUSION & RECOMMENDATIONS

Conclusion & Recommendations

After having analyzed the data, it was observed that practically there was recruitment and selection in the organization. To be an effective tool, it has to be on the continuous basis. This is the thing that has been mentioned time and again in the report, as, in the absence of continuity, it becomes a redundant exercise. Before actually deciding drafting what should be the kind of recruitment and selection the following things should be taken care of: 1. The very concept of recruitment and selection should be standardized

through the organization. Unless this is done, it is accepted, be it how important to the organization. 2. To market such a concept, it should not start at bottom, instead it

should be started by the initiative of the top management. This would help in percolating down the concept to the advantage of all, which includes the top management as well as those below them. This means that the top

management has to take a welcoming and positive approach towards the change that is intended to be brought.
3.

Further, at the time of confirmation also, the recruitment and selection

form should not lead to fault of any information. Instead, detailed l of the employees work must be done which must incorporates both the work related as well as the other attributes that are important for org.
4.

Time period for conducting the recruitment and selection should be

revised, so that the the exercise becomes a continuous phenomenon.

5.

Transparency into the system should be ensured through the

discussion about the employees performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that.
6.

Performance appraisal conducted must be fair and very clear to the performance

employees. A well communicated or discussion sort of appraisal should be conducted.

7.

Management must provide the opportunities for self-development of

employees. They must feel proud working with the organization.

8.

Promotions must be handled fairly and all employees must be

informed about the openings within the organization.

9. 10.

Permute use of work incentives- profit sharing. Creative and innovative-provide employee with opportunities to use

their there skills.

11.

Train people and help them recognizing suggestion opportunities and

making suggestion.

12.

It should be noted that the recruitment and selection form for each job

position should be different as each job has different knowledge and skill requirements. There should not be a common recruitment and selection form for every job position in the organization.

Bibliography

1.

Kothari, C. R. (2007) Research methodology 3d edition, Wishwa

Prakashan, New Age International (P) Ltd. Daryaganj, New Delhi, India.
2. 3. 4.

http://www.google.co.in http://www.Jindal .com Trochim, William M. K. (2007) Research Methods 2nd edition,

Biztantra,Dreamtech Press, Daryaganj Press, New Delhi, India

5.

Bhatia S.K. (2006) New Compensation Management Changing

Environment 3rd edition, Tata McGraw Hill Publication, New Delhi, India.

Appendices

Questionnaire Name: Age: Gender: Marital Status: Contact No:

Please answer the following questions; your responses will be kept confidential

Q1. Do you satisfied with the HR policies adopted by the organization? 1) Yes 2) No 3) Cant say.

Q2.Which Recruitment Policy is adopted by the organization? 1) On-line 2) Advertisement 3) Institutions.

Q3.According to you what is the most important factor for Selection policy? 1) Qualifications 2) Past experience 3) Interview.

Q4.Which type of compensation is given by the organization? 1) Monetary 2) Non-Monetary.

Q5.Which type of appraisal system is adopted by the organization? 1) MBO 2) 360 Degree appraisal 3) Assessment centre.

Q6.Are you satisfied with the leave policy of organization? 1) Yes 2) No 3) No comment.

Q7.What confronts you wants in welfare policy? 1) Canteen 2) Insurance 3) Transportation.

Q8.Which type of social security you wants from organization? 1) Gratuity 2) Provident Fund 3) ESI Co.

Q9.Which method is adopted by organization in Training policy? 1) On-Job Training 2) Workshop 3) Seminars.

Q10.Do you think your HR policies helps in building good relationship? 1) Yes 2) No 3) Cant say.

Q11.How frequently your organization change the policy? 1) After Govt. order 2) After 6 months 3) Annually.

Q12.What is the major good impact of good HR policies? 1) Productivity 2) Reduce turnover 3) Good relationship.

Q13.Does Top mgt. includes your representative at the time of making HR policies? 1) Yes 2) No 3) No comment

Q14.Any Suggestion for improving the existing HR policies in your organization? ..................................................................................................................................... ...................................................................................................................................... ......................................................................................................................................