STEEL DEVELOPMENT An Overview

Metrolla Steels Ltd.,(Metcon) Muvattupuzha

CONTENTS

SL.NO.PARTICULARSPAGE NO.

1INTRODUCTION

SCOPE OF THE STUDY

OBJECTIVES OF THE STUDY

METHODOLOGY OF STUDY

LIMITATION OF STUDY 5

6

677

2INDUSTRY PROFILE8-19

3COMPANY PROFILE20

4DEPARTMENTAL STUDY27

5 MARKETING DEPARTMENT28

6 PRODUCTS OFFERED30

7 PLANT & MAINTENANCE DEPARTMENT37

8 HUMAN RESOURCE DEPARTMENT 49

9 QUALITY CONTROL DEPARTMENT58

10 FINANCE DEPARTMENT64

11SWOT ANALYSIS67

12CONCLUSION671

INTRODUCTIONGeneral Introduction

Organization study is an exercise for the students who are undergoing M.B.A. programme. The objective of the study is to make the student familiar to the current industrial scenario. It provides the student with the first hand idea on the general working of the organization. The student gets an environment where he can actualize all the knowledge he has acquired in his curriculum. The exercise is an opportunity for the student to understand the organizational structure, the major departments, flow of information and various other functions in an organization.

This report gives description on the organization structure, company profile, products and other details of Metrolla Steels Ltd., Muvattupuzha.

Scope of the StudyThe study on an organization can provide the student an exposure to the current status of the organization. It will avail him with first hand information on the various levels in an organization and their structural formation. The student can understand the functions of any individual department along with realizing and analyzing the hurdles in the functioning of the organization as a whole. The study also allows him to analyze the strength, weakness, opportunities and threats of the organization in its field of production. The organization study endow one with the strategies taken by the management to face the competition and to be the leaders in the market.

Objective of the Study

1) To have a general idea on the basic business operations of an organization.

2) To understand the organization structure and various departments.

3) To study the functions of various departments.

4) To understand the day to day problems faced by the management.

5) To know the remedial steps taken by management.

6) To know the duties and responsibilities of each department and personnel.

7) To relate theory in practice.

8) To study external and internal factors affecting operation of the organization.

Methodology Of StudyThe study was conducted on primary and secondary data available.

1) Primary Data:

The primary data was collected directly from the management and the employees through personal interactions and discussions.

2) Secondary Data

Sources of secondary data were company brouchers, journals, magazines, articles and internet.

Limitations

1) As the time allotted for the study was short, only limited amount of data could be collected.

2) The study was mainly based on secondary data, and so it is subject to the limitations of the same.

STEEL DEVELOPMENT An OverviewSteel bars play a sturdy, pivotal role in building lasting structures. When modern structural designs strive to defy the challenges of nature, space limitations and aesthetic perceptions, steel rebars should be superior. In strength and ductility, especially.

This is precisely where normal CTD rebars crack and thermo mechanically treated (TMT) rebars excel.Steel is a rather special form of iron: an appropriate definition for this account would be iron alloyed with 0.5% to 1.5% carbon, so distinguishing it from wrought iron, which has much less carbon, and from cast iron, which has more carbon.

The ancients recognised the value of steel, and also knew the arts of hardening and tempering, is clear; what they did not know was the actual cause of the difference between iron and steel. Indeed, it was only at the end of the eighteenth century that the role played by carbon was finally elucidated. It was in 1781 that Bergman, in Sweden, reported he had found that cast iron contained upto 3.3% of what he termed 'plumbago', steel containing upto 0.8% and wrought iron, less than 0.2%. In 1786, a group of French savants published a paper which, essentially substituting 'charbon'for Bergman's 'plumbago', established carbon as the essential constituent that distinguished soft iron from hardenable steel.

Prior to this date, throughout the early part of what we now term the Industrial revolution, steel exhibiting a fitness for purpose had been produced on what was clearly a commercial basis: repeatedly and reliably. Admittedly, this was only achieved by what have been called 'rule of thumb' procedures; once a method had been shown to work, then none of the parameters must be changed. It could, however, be commented that modern quality control systems also call for adherence to standard methods of production.

The earliest steel was provided by a modification of the bloomery process for iron production, some carbon being retained in the metal taken out from the hearth. This direct production of steel from the ore was a deliberate act on the part of the smith, presumably by adjustment of the ratio of charcoal to ore.

With the replacement of the bloomery by the blast furnace in the medieval period, production of steel from cast iron became more complicated. Since the carbon content of steel falls between that of cast iron and wrought iron, it was logical to endeavor to refine cast iron by partial removal of carbon, leaving the correct amount in the product.

Another approach was to refine the cast iron by removing virtually all the carbon, so producing wrought iron. This, in flat rectangular bars, was then recarburised in a controlled manner by embedding in crushing charcoal and heating to a bright red heat, whereby carbon from the charcoal gradually diffused into the body of the iron, converting it into the product known as 'blister steel'. This was the 'cementation process' and, again, did not involve the production of molten metal; although the bars were modified somewhat in appearance, they retained their physical identity. The procedure, first described in 1601 and cited in a patent of 1614, was obviously a working procedure during the seventeenth century and was in operation throughout the whole of the Industrial Revolution. The production of molten steel came with the work of Huntsman in the 1740s, utilising a coke-fired furnace to melt blister steel in a crucible, so producing a homogeneous melt, which could then be poured into a suitable mould to produce an ingot of 'cast steel'. The combination of the cementation furnace with crucible furnaces became the 'integrated steelworks' of the first half of the nineteenth century in Britain. The story of steel continues even today...STEEL INDUSTRY AN OVERVIEWThe steel industry can be classified into two segments viz. primary steel producers and secondary steel producers. Primary steel producers, also known as integrated steel producers, are involved in the entire range of iron and steel production commencing from exploration of iron ore to the production of finished steel products. The secondary producers purchase iron ore or steel scrap and process them and do not use coking coal. The secondary steel producers can be classified into three types viz. major secondary plyers, mini steel plants and steel re-rollers. While SAIL, TISCO and Rashtriya Ispat Nigam Ltd are three major integrated steel producers. Jindal steel, Ispat industries and Essar steel are some of the secondary steel producers in the country. There are a number of mini steel plants and steel re-rollers. Finished steel is used mainly in the form of long products, flat products, and alloy steels.The demand for steel is derived from a number of factors like :

Automobile Production

Index of Industrial Production for Capital Goods

Index of Industrial Production for Consumer Durables

Bank Credit to Commercial Sector

Infrastructure Growth

Construction Sector Growth

Steel Industry is a booming industry in the whole world. The increasing demand for it was mainly generated by the development projects that has been going on along the world, especially the infrastructural works and real estate projects that has been on the boom around the developing countries. Steel Industry was till recently dominated by the United Sates of America but this scenario is changing with a rapid pace with the Indian steel companies on an acquisition spree. In the last one year, the world has seen two big Merger and Aquisition deals to take place :-

The Mittal Steel, listed in Holland, has acquired the world's largest steel company called Arcelor Steel to become the world's largest producer of Steel named Arcelor-Mittal.

Tata Steel of India or TISCO (as listed in BSE) has acquired the world's fifth largest steel company, Corus, with the highest ever stock price.

It has been observed that Steel Industry has grown tremendously in the last one and a half decade with a strong financial condition. The increasing needs of steel by the developing countries for its infrastructural projects has pushed the companies in this industry near their operative capacity.

The most significant growth that can be seen in the Steel Industry has been observed during the period 1960 to 1974 when the consumption of steel around the whole world doubled. Between these years, the rate at which the Steel Industry grew has been recorded to be 5.5 %. This roaring market saw a phase of deceleration from the year 1975 which continued till 1982. After this period, the continuous fall slowed down and again started its upward movement from the early 1990s.

Steel Industry is becoming more and more competitive with every passing day. During the period 1960s to late 1980s, the steel market used to be dominated by OECD (Organization for Economic Cooperation and Development) countries. But with the fast emergence of developing countries like China, India and South Korea in this sector has led to slipping market share of OECD countries. The balance of trade line is also tilting towards these countries.

The main demand creators for Steel Industry are

Automobile industry,

Construction Industry,

Infrastructure Industry,

Oil and Gas Industry, and

Container Industry.

New innovations are also taking place in Steel Industry for cost minimization and at the same time production maximization. Some of the cutting edge technologies that are being implemented in this industry are thin-slab casting, making of steel through the use of electric furnace, vacuum degassing, etc.

The Steel Industry has enough potential to grow at a much accelerated pace in the coming future due to the continuity of the developmental projects around the world. This industry is at present working near its productive capacity which needs to be increased with increasing demand.

The following figure shows the finished steel consumption around the world. For steel consumption too, Asia is clear winner. Share of Asia in world

consumption in 1995 was around 45% which increased to 57.4% in 2005.

But the share of America and Europe has decline for same time period.

STRUCTURE OF INDIAN IRON & STEEL INDUSTRYThe Indian steel industry is a mix of large and small units. A wide range of technology is used in India to produce steel. In terms of technology engaged the Indian steel Industry can be broadly put in the following categories:

Large integrated steel plants, which combine primary steel making and rolling facilities. These plants use blast furnace-basis oxygen furnace (BF-BOF) technology with coal coke and iron ore as major raw materials. Major Indian steel producers are Steel Authority of India (SAIL) with 4 plants, Tata Iron Steel Company (TISCO), Rashtriya Ispat Nigam Ltd. (RINL) and Vizag Steel Plant (VSP).

Electric Arc Furnace (EAF) units, which are normally of small size, melting metallic like steel scrap, DRI and pig iron. Some of the EAF units have rolling mills also as forward integration.

Induction furnace (IF) units which are normally of small size, melting metallic like steel scrap, DRI and pig iron. Some of the EAF units have rolling mills also as forward integration.

Long products: These include bars, rounds, angles and structural and are mainly used in construction; infrastructure and heavy engineering.These products require lesser capacities. Long products are the largest steel category produced in India accounting for around 50% of total production.

Electric Arc Furnace based steel plants have been contributing significantly to the, overall steel availability in the country. Presently, there are 188 electric arc furnace based steel plants in the country with an aggregate capacity of 10.68 million tones per annum. Of these, as many as 45 units with an aggregate estimated capacity of 5.33 million MT are reportedly working.The steel industry, in general, is on the upswing, due to strong growth in demand propelled particularly by the demand for steel in China. The world scenario coupled with strong domestic demand has benefited the Indian steel Industry.

World steel prices rose from December 2001 onwards. The price increase of hot-rolled (HR) coils, during January 2002 to December 2004 was from US$ 140 - 175 per tonne to about US$ 550 - 600 per tonne. The prices of steel melting scrap rose from a low of US$ 93 - 94 per tonne to US$ 275 - 285 per tonne.

As part of building up infrastructure, India has started a tremendous programme of highway construction across the country. As a result, domestic steel demand has risen.

The increased production of steel has in turn led to rise in prices of raw materials like scrap, coking coal and metallurgical coke. The wholesale price index (WPI) for iron and steel, has increased by 35 percent to 202.1 in 2003-04, and further to 237.8 in the current year up to December 31, 2004.

Riding high on the resurgent economy and rising demand, the Indian steel industry has entered into a new development stage from 2005-06, with an average growth rate of 12 per cent per annum in steel output, for the last two years.

Production

The rapid rise in production has resulted in India becoming the worlds 5th largest producer of steel, up by two places, on the back of 50.71 million tons (MT) production of crude steel and 51.9 MT of finished steel. In March 2008, finished steel led the pack by registering 21.8 per cent growth compared to 16.6 per cent in March 2007. For the whole year though, finished steel production, with a weightage of 5.13 per cent in the IIP, grew by 5.1 per cent.

While the demand for steel will continue to grow in traditional sectors such as infrastructure, construction, housing automotive, steel tubes and pipes, consumer durables, packaging, and ground transportation, specialized steel will be increasingly used in hi-tech engineering industries such as power generation, petrochemicals, fertilizers, etc.

During April-February 2007-08, production of finished carbon steel was estimated at 49.67 MT - against 46.75 MT in the same period of the previous year - recording a growth rate of 6.2 per cent. Similarly, production of pig iron amounted to 4.39 mt during April-January 2007-08.

Presently, the government plans to increase production from the present 53 MT to 124 MT by 2011 and 200 MT by 2020, so as to narrow the gap between supply and demand. However, access to coking coal will be the key to the success of this strategy.

According to a report by the World Steel Dynamics (WSD), a leading global steel information service, the Indian steel industry has entered a period of massive growth not only in steel demand but also in steel making capacities.

Consumption

Driven a booming economy and concomitant demand levels, consumption of steel has grown by 12.5 per cent during the last three years, well above the 6.9 per cent envisaged in the National Steel Policy. For 2008 it has been forecast that the apparent steel use point in India will increase by 11.8 per cent in 2008.

Steel consumption amounted to 46.14 MT in 2006-07, against 41.43 MT in 2005-06, recording 11.36 per cent growth higher than the world average. During the first half of 2007, steel consumption has grown by 13 per cent. For the period of April-September 2007-08, the total consumption (excluding double counting) of steel is 21.998 MT as compared to the 19.819 MT in the same period last year (as per data from the joint parliamentary committee).

With this surge in demand level, steel producers have been reporting encouraging results. For example, the top six companies, which account for 70 per cent of the total production capacity, have recorded a year-on-year growth rate of 11.4 per cent, 12.7 per cent and 9.7 per cent in net sales, operating profit and net profit, respectively, during the second quarter of 2007-08. Tata Steel, the worlds 6th largest steelmaker, aims to double its returns on investment by 2012. Essar Steel is aiming to enhance its steel capacity from 4.6 million tons to 9 MT in Gujarat.

Exports

Along with growth in production, exports have increased by 6.26 per cent in 2006-07 over 2005-06 to touch 4.75 MT. Exports accelerated in the first six months of FY07, growing by 7.4 per cent to 2.6 MT from 2.42 per cent in 2006. Yet, the Indian Steel Ministry has proposed an ad valorem export duty on chrome ore (Union Budget 2008), fearing fast depletion due to phenomenal rise in exports. The government aims to first meet the needs of the domestic industry.

Investment

A host of steel companies have lined up major investment proposals. Furthermore, with 13 billion tons of iron ore deposits, 5th largest in the world, and an expanding consumer market, the Indian steel industry is likely to receive huge domestic and foreign investments.

Chinas largest investment in India more than US$ 1.999 billion over 5-10 years is slated to come up in Karnataka with the setting up of Xindia Steels. And going by the ball park estimate of US$ 1.01 billion investment per MT of additional capacity, the steel industry is likely to attract an investment of US$ 69.97 billion by 2011-12 and US$ 220.02 billion by 2019-20.

In fact, during the last quarter of 2007-08, the industry announced capacity expansion plans of nearly 31 million tones (mt) to meet the growing demand. This is likely to result in an additional investment of US$ 21.21 billion.

Indian steel firms plan to invest US$ 20.96 billion in the coming months to expand capacity by 31 million tones (mt) to meet rising demand in a fast growing economy.

ArcelorMittal, the world's largest steel maker, is "very bullish" about India and is committed to invest nearly US$ 25 billion in India.

Tata Steel, whose capacity will touch 7 million tones (mt) by mid-July, will spend US$ 18.79 billion on three of its greenfield projects which will take its total capacity in India to 35 million tones.

A shower of steel plants

While some of the investment is directed at modernisation and upgradation of existing steel plants, a major share of it is to either set up new plants or expand existing capacities. From the biggest players like Arcelor Mittal and Tata Steel, to mid-level players like Bhushan Steel and Welspun, the next few years are a time to ramp up production capacity.

The Inter Ministerial Group constituted for the steel industry estimates steel production to grow at a CAGR of 16 per cent to touch 124.06 MT by 2011-12. This is significantly larger than the earlier official estimate of 80 MT. In fact, India's steel production capacity is estimated to be 200 MT by 2020.

Arcelor Mittal, the world's largest steelmaker, plans to set up two greenfield steel projects in India each with a capacity of 12 million ton per annum (MTPA).

Acerinox SA, the world's 2nd biggest stainless steelmaker, is joining hands with Japan's Nisshin Steel to build a steel plant in India.

Tata Steel, the world's fifth largest steel maker, plans to double its capacity by 2015, by adding another 35 MT capacity.

India's largest steel manufacturer SAIL is planning to increase its annual production of 12 MTPA to 24.98 MTPA by 2011-12.

Sinosteel Corp, China's 2nd biggest iron ore trader, plans to invest US$ 4 billion to build a 5 MT greenfield steel plant

Kalyani Steels will set up an integrated steel and power project in West Bengal, at a cost of US$ 1.63 billion.

US$ 365.7 million investment coming in steel is coming up in Karnataka.

Mesco Steel plans to invest around US$ 2.8 billion in two steel plants a brownfield expansion and the other a greenfield project in Orissa.

Vedanta Resources plans to enter the Indian steel sector with a 5 MT plant at an investment of about US$ 6.02 billion in Orissa.

State-owned Steel Authority of India Ltd (SAIL) will invest US$ 5.006 billion in West Bengal. This is almost two-fifths of the US$ 13.27 billion spread planned by SAIL.

Global forays

Indian steel producers are spreading their footprints all over the globe. With the change in regulatory environment that has enabled Indian companies to stretch out to foreign shores, the country's steel industry is getting renewed global attention.

Tata Steel has acquired the Anglo-Dutch steelmaker Corus to become the world's 5th largest steelmaker, adding 19 MT of steel-making capacity.

Essar Global has acquired Canada's Algoma Steel for US$ 1.63 billion and US-based Minnesota Steel.

Naveen Jindal-promoted Jindal Steel & Power Ltd (JSPL) has bagged the US$ 2.1 billion contract for developing one of the world's largest iron ore deposits, El Mutun. The project includes a 2 MT steel plant in Bolivia.

JSW Steel has acquired Jindal United Steel Corporation, Saw Pipes USA and Jindal Enterprises LLC at Baytown, Texas, for US$ 940 million.

India's Steel Strips Wheels Ltd. has received an order from French car maker Renault SA worth US$ 27.56 million to supply around 1 million steel wheel rims for over 5 years.

India is poised to be the worlds 2nd largest producer of steel before 2016. India's steel production will be nearly 124 MT by 2012 and that the country could achieve an annual capacity of around 275 MT by 2019-20.

As India surges ahead, catapulting its industry to new economic heights, the Indian government plans to invest over US$ 350 billion in industries related to infrastructure and construction. In such a scenario, the Indian steel industry will see a boom for some time to come.

STEPS TAKEN TO BOOST STEEL INDUSTRY IN INDIAIn budget 2004-05, the customs duty on nonalloy steel was reduced from 15 % to 10 per cent and on alloy steel from 20 per cent to 15 per cent. In August 2004, the customs duty on non-alloy steel was further reduced from 10 per cent to 5 per cent; on meltingscrap from 5 per cent to 'zero' and on ships for breaking from 15 per cent to 5 per cent.

Further, customs duty on several raw materials used by the steel sector like noncoking coal, metcoke and nickel has been reduced to 5 per cent and on coking coal to 'zero'.

To bring down the prices of steel, the excise duty on steel products was reduced from 16 per cent to 8 per cent with effect from February 28, 2004 with a caveat that the duty regime will be reviewed. Budget 2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent, as the intended impact of duty cut on moderating prices was not achieved.

WHAT IS FURTHER NEEDED

While the increase in the domestic prices of steel because of an increase in international demand cannot be avoided , attention needs to be paid to the problem of adequate and reliable supply of coal to the steel industry. Efforts are required for securing assured linkages of coking coal from overseas sources.

Furthermore, cross-border investment in captive coal mines, especially for coking coal, in major source countries as well as investment for developing coal mines in India, need to be encouraged. Further, the movement of raw materials and finished steel would need good rail and road network as well as substantial improvement in port handling, storage and haulage facilities.

Metrolla Steels Ltd.

Company Profile

In the world of steel manufacturing, Metrolla Steels Ltd. is a celebrity. Recognized all over south India as a high-class manufacturer of quality steel products with ISI certification, the company is in constant pursuit of excellence in every field through the earnest efforts of a core of technocrats and a devoted workforce.

Metrolla Steels Ltd, set up by a team of technocrats, has grown from a single-unit steel plant in to the present multi-locational and multi-product steel conglomerate. The group has been technology-driven and has a broad product portfolio. It 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. Metrolla Steels Ltd., an ISO 9001:2000 organization is capable of supplying internationally acceptable quality steel products.

They have two units- a steel melting shop and a rolling mill. The steel melting shop manufactures steel cast billets .The rolling mill manufactures steel rods, flats, squares, etc of various sections.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 ever changing construction industry.Concrete specialists and structural engineers around the world have always been concerned regarding the long term durability of concrete structures. Ways and means were constantly sought to enhance the safety and strength of structures. Inspite of using the finest aggregates, sand and quality cement they were still not satisfied.

The steel bars used for reinforcement in RCC structures were found wanting in many ways. They were more prone to corrosion. They also were more vulnerable in times of earthquakes and other natural disasters. Therefore there was a genuine quest for high quality superior grade steel bars which will ensure long term durability of RCC structures.

The social commitment of Metrolla Steels Ltd leads to the continuous quest for steel of good quality. The company realized that the high grade steel bars which ensures the safety of buildings were not available in the local market. But world over ordinary steel bars has become obsolete and new technologically superior grades of steel were being used. The company was on its way to find out the best technology available. This has led us to introduce branded METCON TMT steel bars ,manufactured by adopting the latest German based TURBO TMT PROCESS TECHNOLOGY.Tracking and adopting the latest in world technology; anticipating customer needs with cost-efficient, reliable solutions, and promoting engineering skill and manpower caliber is the success of Metrolla Steels Ltd.

The need for perfection begins in the workforces mind itself. Quality control is a challenge that M/s Metrolla Steels Ltd., has overcome through diligence and discipline and by encouraging its employees to develop a sense of pride in their jobs. Today Metrolla Steels Ltd. is an ISO 9001: 2000 certified organization manufacturing high quality METCON TMT Steel bars with ISI certification. The company is still expanding, integrating and growing.

The advancements in technology which give much importance to safety of buildings are becoming more popular these days were earth quakes and other natural disasters are becoming quite common. Since steel bars play an important role in the safety of buildings, the Metcon TMT steel bars are manufactured with German TMT technology, and every meter of the steel bar is embossed with ISI mark. It is the first time in Kerala that ISI marks are embossed in TMT steel bars.

Metrollas Metcon TMT steel bars which offers no compromise in quality have become quite popular in the industry. The specialty of TMT bars are their strength and their ability to resist rust. To a certain extent it can stand earth quakes and other disorders. So in developed nations, these bears are widely used. With the continuous research and advancement in technology, and with the latest machinery, Metrolla steels offers world quality TMT bars.

Mr. Kurien Varghese, who is having high degrees in civil engineering, and years of experience in the building industry is the Managing Director of Metrolla Steels. There will be strict examination by metallurgists in each stage of manufacturing of these bars. It is this close examination in quality that has made Metrolla, the pioneer of steel manufacturing in Kerala. The metallurgists and Engineers who have decent expertise in the steel industry, give strength to Metcon TMT.The Beginning Of The Company

After completing his civil engineering degree from Mar Athanasious College, Kothamangalam, Kurien Varghese had a dream. Now after 18 years, he is the Managing Director of Metrolla Steels, the only company in Kerala which developed TMT Metcon steel bars.

Kurien Varghese has made a milestone attempt by introducing different grades of Metcon TMT steel bars. It is the first time in Kerala that steel bars are tested for quality.

I had a dream once I completed my Engineering degree. I am proud that the dream has grown to the extent of making quality steel products for multi storied buildings.It is that dream which helped me to study the different aspects of steel which can resist earth quakes and other adverse climatic conditions. says Mr. Kurien Varghese.

In 1986, Kurien Varghese started a hardware shop in Muvattupuzha. The shop which sold all the materials required for the construction of a building, began whole sale supply of steel bars in 1989. The sales figure in 1987-88 was 100 tons which grew rapidly to 1500 tons in 1989. Thus he got the idea of starting a business in this field and hence started the Metrolla Steel Company in 1996, with the support of KSIDC.

When earth quakes were apparent in Kerala, the company thought of developing a new technology, which can resist earth quakes. The Metcon TMT, which was developed with German Technology, was born as a result of this. The raw materials used for Metcon TMT are ISI marked. The TMT bars contain ISI mark in every meter.

In 2000, Metrolla started a company in Pondicherry. It manufactures Billets for Metcon manufacturing. Metrolla Steels has become No.1 in Kerala with the advent of Metcon TMT. The companys aim is to make quality products consistently says Kurien.

The advice given by Kurien Varghese to new investors is this Problems depend on how we face it Mr. Paul Varghese, younger brother of Kurien Varghese and Managing Director of the Pondicherry firm is also there with him in this business.

The Metcon TMT bars is the brain child of such a great and farsighted vision of Mr. Kurien Varghese. Instead of the ordinary steel bars, people in this part of the country are relying heavily on the Metcon TMT bars, which offers greater strength and quality.

More than the mere branding of Steel bars, this 40 year old business man also finds way to eliminate duplicates in the industry, by providing ISI logo and Metcon emblem in every meter of the bar.

Metcon TMT is the first branded product of Metrolla Steels Limited. Now instead of simply buying an 8 mm steel bar from a hardware shop, the customer asks for branded Metcon TMT.

When compared with ordinary steel bars, TMT bars offers 20% extra strength. It can also withstand adverse conditions like earth quakes. The TMT bars are manufactured as per the revised norms of IS 1786.

When welded together, TMT bars does not lose strength. It stays strong in temperatures even up to 500o C. Face to face welding is possible with TMT bars. This saves a lot of material, and hence money. In large projects, such savings may account up to 15% of the cost.

Business often offers a warm welcome to early birds. Mr. Kurien Varghese also hopes for such a warm and bright reception.

Organisation SetupThe activities of the organization can be divided into production and administration. Managing director Co-ordinates the production and administrative function. There is a General Manager to assist the MD and to control all functional managers. The functional managers perform their duty and control the subordinates and report to the general manager. The organization setup is clearly depicted in the organization chart.

Corporate Objectives Of The Company To build lasting relationships with customers based on trust and mutual benefit.

To uphold highest ethical standards in conduct of our business.

To create and nurture a culture that supports flexibility, learning and is proactive to change.

To chart a challenging career for employees with opportunities for advancement and rewards.

To value the opportunity and responsibility to make a meaningful difference in people's lives. To maintain the Quality of the product.Quality Assurance By Company

Quality to Metcon means not only product quality or service quality but also cost, delivery and after sales service which goes with it. Responding to this concept of quality Metcon has adopted quality systems appropriate to it's clients.

Metcon's commitment to product quality is reflected through quality systems adhered to from selection of raw material to dispatch of finished goods. Excellent traceability and identification are factors for our product and are maintained from receiving stage till dispatch.

Metcon is committed to total quality which shall be achieved by timely delivery of quality products to the entire satisfaction of the customer and by continually improving its quality management system processes.

The Bright Steel Bars of Metcon are free from scale and harmful imperfections, tight dimensional tolerances, superior straightness and higher strength than hot-rolled products. They are ideally suited to machining and shafting applications. DEPARTMENTSThe different departments in the company includes the following :-

1. Marketing Department

2. Plant & Maintenance Department

3. Human Resource Department

4. Quality Control Department

5. Systems Department

MARKETING DEPARTMENTDepartment Structure

MARKETING DEPARTMENTThe department of marketing is headed by a marketing manager. There are three levels of hierarchy in the marketing departments. Under the marketing manager there is the senior manger marketing and the sales. The senior manager marketing is entrusted with creating demand for the product, under him there are two district managers. Where as the sales manger is entrusted with creating sales for the product and under him there are two sales managers who are also responsible for maintaining the sales of the company.

MARKET SHARE ANALYSIS

The company has got distribution in Eight districts in Kerala. It includes Trichur, Ernakulam, Kottayam, Allapuza,. Pathanamthitta, kollam,Trivandrum, Calicut, and recently Idukki. The Company has got 69 to 70% share in the regional market for the TMT bars

PRICING STRATEGIES

Since the product belongs to the premium segment the TMT bars are priced near to the price ofits competitors. The major competitors for their product in tmt segment are Tata tiscon, vizag,and sail. The pricing policy adopted by metcon is competition oriented pricing strategyIn this form of pricing policy, the price is set after a careful consideration of the competitive

price structure. The policies are formulated to sell above, below or generally in line with the

price of the competitors. The important feature of the pricing model is that their cannot be any

relation between the price of the product and the firms on cost or demand. The price of the TMT bars is nearly 50 / kg now. The companies pricing policy is that it is .5 to 1 % less than the price of the competitors.

Products Offered By The Company To The Customers

Products SpecificationsGrades

METCON TMT BARS( ISI )8mm, 10mm, 12mm, 16mmFe-415, Fe-500

CTD BARS5mm, 5.5mm, 8mm, 10mm,

12mm, 16mm, 20 mm, 25 mm

ROUNDS/PLAINS

6mm, 10mm, 12mm,

16 mm, 20mm, 25mm

FLATS20 * 3 25* 6

25 * 3 32 *6

32 * 3 40 * 6

20 * 6 50 * 6

25 * 5 50 *10

40 * 10

ANGLES

20/20/3, 25/25/3,

25/25/6, 32/32/3,

35/35/6, 40/40/3,

40/40/6, 50/50/6,

65/65/6,

CHANNELS

100/50/6,

20/3,

75/40/6

Squares 10 mm, 12mm, 16mm,

20mm, 25mm, 32mm

Competitors Of the CompanyThe market for TMT bars are divided in to three segments. The company has competitors only in the premium TMT segment Premium TMT segmentsSince the product of the company belong the this segments the major competitors are Tata, Tiscon, Vizag, Sail

Branded TMT with ISIRosan, Agni ,Peekay ,Paragon ,Prince , Tulsiyan

Branded TMT without ISI

Chanmudi ,Surabi

The major competitors that the company faces belong to the premium TMT segment. The company has around 65 to 70% share.

Supply Chain ManagementThe distribution channel of Metrolla steels is divided in to two forms direct distribution and indirect distribution. In direct distribution materials move to the producers retail chains and the consumers. Where as in the case of indirect distribution the materials move to the retailers and from the retailers the materials are purchased by the ultimate consumers. The company does like to have more channels in their distribution because this will increase the cost of the product.

Market Research

The company conducts market research at regular intervals. The research is conducted to know the probable market, condition, to access competitive strength, to estimate potential buying power, to know the probable volume of future sales, and to know the customer acceptance. The company conducts research at various elements like sales, products and advertising.

The sources of market research by company include internal and external sources. The internal sources the companies on internal records where as the external sources include the government reports like (CMIE) and reports from professional bodies like confederation of Indian industries, chamber of commerce, steel association of India, FICCI.ADVERTISEMENTThe company spends around 5% of the net profit for advertisement. The various forms of advertisement done by company includes print media, audiovisual, point of purchase and outdoor advertisement.

The Print media includes newspaper and magazines The various news paper in which advertisement done includes Malayala Manorama

Deepika Business line Mathribumi The various magazines in which advertisement done includes Dhanam Veedu Vanitha parpidamThe audio visual advertisement includes theatre and radio advertisement The point of purchase advertisement includes window display and company showroom display. The outdoor advertisement includes wall paintings, hoardings and transit media .

PROMOTIONAL EFFORTSThe various promotional efforts done by the company includesseminars and exhibition - the various exhibition and seminars conducted by the company includes Engineers meets, Parpidam exhibition, maisons meets, Graduate association of civil engineers (GACE)

advertising materials - the various advertisements materials are given to its dealers about the new features of the products

special displays and shows- these are conducted along with the seminars and exhibitionsWAREHOUSINGTHE company has an in plant warehouse and a field warehouse. In in plant warehouse the company stores the entire materials produced in the factory, from the in plant warehouse the materials are moved to the field warehouse, from which the materials move to the retailers, producers retail chains and industrial sites.

SERVICES OFFERED BY METROLLA STEELS : 1. Immediate Delivery

The material gets loaded and will leave the company within 12 hours from the time of ordering.2. Feedback

The details of load like items loaded , its quantity, lorry nos., lorry freight details, Invoice details etc. will be communicated to the parties at the moment the lorry leaves the yard.3. BendingAll the material will be bended and bundled according to the standards before delivery. This will help in easy handling of material.4. MarkingAll the ISI quality Metcon TMT bars are marked with 'Metcon' ISI on every metre of the bar. In addition to this each bundle has a 'metcon tag' bounded.

5. Test certificateThe company will provide the test certificate for each lot of material. The test certificate will have details of chemical analysis, mechanical properties, physical properties etc. of that particular lot.6. TransportationThe company, on request, will arrange the transporataion of material from the company premises to the delivery site.

7. Detailed statements

The detailed statement of the payments and balances will be given to the parties on request.

PLANT AND MAINTENANCE DEPARTMENT

PRODUCTION PROCEDUREThe production begins with primary production that is iron ore which include materials like sponge iron, pig iron, wrought iron. Fe alloys are converted in to billet. The composition of

material IncludeSponge iron 70%Mild iron 20%Fe alloys, wrought iron, cast iron, pig iron 10%-15%At Metrolla steels the resolve to deliver a truly superior TMT rebar begins from the raw

Materials. It only uses ISI certified billets. The manufacturing process takes a along, devoted 19

stages. This ensures that sturdy strength is built, phase by phase, in to rebar's this dedication hasgiven birth to India truly world class TMT rebar's.TURBO TMT TECHNOLOGY

The Thermo Mechanical Treatment process consists of an online heat treatment in three

successive phases.

Stage 1The first stage is a fast cooling step which is applied as the bar leaves the finishing stand. The cooling efficiency should be such that the rate of cooling down to a certain depth below the skin should be higher than the critical rate for martensite quenching. At this stage, the bar has an austenite core surrounded by a layer comprised of a mixture of austentite and martensite, with the martensite content increasing from the centre of the skin. The duration of the first stage depends on the desired thickness of the martensite layer. Stage 2During the second stage, the bar leaves the area of drastic cooling and is exposed to air. The heat transfer coefficient of the environment being very small, and the temperature gradient within the bar's cross section being very large, the core reheats the quenched surface layer by conduction. As a result, the martensite formed during the first stage is subjected to self tempering which I ensures adequate ductility while maintaining a high yield strength level. The length of the second stage varies greatly with the diameter of the bar and the cooling conditions applied during the stage. During this stage, the untransformed austentite in the surface layer transforms to bainite, whereas the core remains austenite. On the other hand, the layer near to the tempered martensite skin then starts transforming to bainite, depending on the material's composition and cooling I conditions. Stage 3The third stage occurs as the bar is positioned on the cooling bed. It consists of a quasi isothermal transformation of the remaining austenite. The product of this transformation is a mixture of either ferrite and pearlite or ferrite, pearlite and bainite. The effect of quenching is a Parted structure on the surface.

Advantages Of Metcon TMT Bars

Corrosion Resistance

The Advanced TMT technology prevents the bars from corrosion. Earth Quake ResistanceThe Advanced TMT technology provides higher strength, balanced stiffness, ductility, higher elongation values, higher fatigue strength to bear dynamic and seismic loading.

Heat ResistanceThe TMT bars are tested to ensure no loss of strength up to 5000C. Even between 500 to 6000C, the yield strength decreases only 20N/mm2. WeldabilityThe Advanced TMT bars can be butt welded or lap welded without pre or post heating. No loss of strength at welded joints. Carbon content is typically less than .25% for better weldability, ductility and bendability. Bendability

The Advanced TMT technology Provides bars that are easy to work with. It requires only less effort for bending / rebending. It pocesses superior reverse bending properties.METCON TMT BARS

CHEMICAL COMPONENTS OF METCON TMT BARSIn percentage Metcon Fe-415 grade TMTMetcon Fe-500 grade TMT

Carbon

(In %)

0.30 %

0.30 %

Sulphur

(In %)

0.06 %

0.055 %

Manganese

(In %)

0.3 to 0.70 %

0.5 to 0.70 %

Phosphorous

(In %)

0.06 %

0.055 %

Bend properties of Metcon steel

METCON TMT bars perfectly satisfy international standards. In India bend and rebend tests are mainly carried out as per Indian (IS 1786) and British (BS 4449) standards. METCON meets all such requirements.

Bend/ Rebend Test TESTMETCON Fe-415METCON Fe-500

BEND2d3d

REBEND4 d5d

Metcon Fe- 415 and Fe-500 specifications( sizes, weight and cross sectional area )8 MM Metcon10MMMetcon 12MMMetcon16 MMMetcon

Section Wt (Kg/m)0.3950.6170.8881.58

Cross Section Area(mm2)50.3178.59113.12201.27

TECHNICAL SPECIFICATIONSMETCON TMT - GRADE 415Sl. NoPropertiesStandardTypical values1Yield Strength, N/mm2, min415430 4602Tensile strength, N/mm2, min485500 5703Stress Ratio (TS/YS), min1.131.15 1.254A5 Elongation, (L=5Dn), min14.514.5 20METCON TMT - GRADE 500

Sl. No.PropertiesStandardTypical Values

1Yield Strength, N/mm2, min500520 550

2Tensile strength, N/mm2, min545590 - 630

3Stress Ratio (TS/YS), min1.101.15 1.24

4A5 Elongation, (L=5Dn), min1212 - 15

METCON TMT - GRADE 550Sl. NoPropertiesStandardTypical Values

1Yield Strength, N/mm2, min550580 - 650

2Tensile strength, N/mm2, min585610 - 640

3Stress Ratio (TS/YS), min1.061.15 1.24

4A5 Elongation, (L=5Dn), min88 - 12

Comparison OF CTD Bars With Metcon TMT Bars

PropertiesCTD BARSMETCON TMT BARS

StrengthHigh (Normal upto Grade Fe-415)Very high as grades of Fe-500 are easily achievable

ElongationAs per IS:1786/85Very high in all grades and over-achieves the elongation requirement in the recent amendment to IS:1786 for earthquake resistance

WeldabilityPreferably avoided as welded joints are weak.Better and no loss of strength

FormabilityBend 3D-5D, Rebend 5D-8DExcellent due to uniform elongation, Bend 2D, Re-bend 5D

Ductility & fatigue StrengthHighVery high, most suitable for earth quake resistant structures.

Fire HazardsLoss of strength on temperature riseNegligible loss in strength up to 5000C.

Corrosion ResistanceScales fall down during cold twistingBetter corrosion resistance.

Overall economy----Less wastage, better strength, workability & availability. Results in overall Steel Saving.

PRODUCTION FLOW CHARTS The Metrolla steels has two units. a melting unit and a rolling unit. The melting unit makes high quality ISI certified MS cast billet ingots. The rolling unit makes ISI certified METCON TMT bars.

MELTING UNITThe heart of melting unit is the electric induction furnace. The raw material is charged using two overhead cranes with electromagnet into the furnace. The raw metal gets melted in the furnace. The molten metal is chemically tested in the advanced testing lab of Metrolla steels. After the testing is over, the required chemicals are added to the mixture to give proper qualities. Once the proper mixture is attained ,the molten metal is casted into the moulds to form steel ingots.ROLLING UNITThe rolling unit consists of a reheating furnace, roughing mill, intermediate mill, finishing mill, the thermo mechanical treatment system and a cooling bed. The reheating furnace uses furnace oil as fuel. The furnace oil and the air are properly mixed and fired using the burners into the furnace. The steel ingots manufactured at metrolla steels' melting unit are the raw material for the rolling unit.The steel ingots are heated in the reheating furnace and taken into the roughing mill using the chain conveyor system. At the roughing mill, the steel ingots gets rough. The area of cross section is reduced while the bar gets elongated in rolling. The similar process happens at intermediate mill and the finishing mill. The finishing mill finishes the material at required sizes like 8mm, 10mm, 12mm, 16mm, 20mm etc.

The finished material is taken for the TMT process to give high strength, bendability, weldability and corrosion resistance. The finished steel is taken to the cooling bed and then to the godown for dispatchMELTING UNIT

ROLLING UNIT

PURCHASING SYSTEMSThe raw materials for the production are imported and purchased from the local market. Raw materials like sponge iron, pig iron are imported from Europe, USA, Canada, Singapore, Malaysia and middle east where as raw materials like pig iron, wrought iron, cast iron are brought from the country itself that is mainly from Punjab and Orissa

The company has got contract with different agencies abroad for the procurement of rawmaterials. Some of the purchase systems followed by the company consist of Forward buying - in forward buying the purchasing decision for a period is taken in advance and the organization will commit accordingly in terms of order , quantity, rate and delivery schedule, this is because of the volatility and fluctuation in the price of the raw materials Blanket ordering system - in this the company will enter in to agreement with its supplier to receive item for a required quantity at a particular rate over a period of timeHUMAN RESOURCE DEPARTMENTRECRUITEMENT AND SELECTION PROCESS

For the purpose of recruitment and selection there is a manager. The recruitment is done mainly through advertisement in newspaper media's, employment exchange and through campus

placement. The advertisement will made in widely circulated newspaper like malayala manorama, business line, Indian express etc., they are also advertisement magazines like veedu, parpidam which are usually written in local language. The time and venue will be mentioned in the advertisement STEPS IN THE RECRUTMENT AND THE SELECTION PROCESS

The actual steps involved in recruitment and selection follow a well defined path: Application shortlist:In this step, we shortlist the CVs received from various sources based on the suitability for the | requirement.

Preliminary Assessment:The short listed candidates go through a preliminary round of interviews. This interview lays I more emphasis on functional competencies. To have more data on the functional skills, the I candidates may be given a business case for analysis and presentation (This is done for certain positions only).

Final interview:

Here the candidates who successfully clear the first round of interview go through another round of interview with one or more of the functional heads.

Medical Evaluation:Candidates who are selected by Metcon are asked to undergo a medical test.TYPES OF TRAININGTraining conducted by Metrolla steels include on the job training the training is conducted in association with KPMG the professional training association. The training is usually conducted for the new employees as well as the existing employees. The training includes on the job training and off the job training. The training conducted for the new employees includes Induction or Orientation TrainingInduction training is given immediately after employment to introduce the new extension staff members to their positions. It begins on the first day the new employee is on the job. This type of training is aimed at acquainting the new employee with the organization and its personnel. Induction training for all new personnel should develop an attitude of personal dedication to the service of people and the organization. This kind of training supplements whatever pre service training the new personnel might have had. Concerning the characteristics of a new employee when people start to work in an organization for the first time, they are eager to know what sort of outfit they are getting into, what they are supposed to do, and whom they will work with. They are likely to be more attentive and open-minded than experienced employees. In fact, the most favorable time for gaining employees' attention and for moldings good habits among them is when they are new to the job. Foundation Training. Foundation training is in service training which is also appropriate for newly recruited personnel. Besides technical competence and routine instruction about the organization, every staff member needs some professional knowledge about various rules and regulations of the government, financial transactions, administrative capability, communication skills, leadership ability, coordination and cooperation among institutions and their linkage mechanism, report writing and so on. Foundation training is made available to employees to strengthen the foundation of their service career. This training is usually provided at an early stage of service life.The training conducted to the existing employees includes :-Maintenance or Refresher Training.This training is offered to update and maintain the specialized subject-matter knowledge of theincumbents. Refresher training keeps the specialists, administrators, subject-matter officers,extension supervisors, and frontline workers updated and enables them to add to the knowledge and skills they have already. Maintenance or refresher training usually deals with new information and new methods, as well as review of older materials. This type of training is needed both to keep employees at the peak of their possible production and to prevent them from getting into a rut..On-the-Job Training This is ad hoc or regularly scheduled training, such as fortnightly training under the training and visit (T&V) system of extension, and is provided by the superior officer or the subject-matter specialists to the subordinate field staff. This training is generally problem or technology

oriented and may include formal presentations, informal discussion, and opportunities to try out new skills and knowledge in the field. The superior officer, administrator, or subject-matter specialist of each extension department must play a role in providing on-the-job training to the staff while conducting day-to-day normal activities.

Career or Development Training

This type of in-service training is designed to upgrade the knowledge, skills, and ability of employees to help them assume greater responsibility in higher positions. The training is arranged departmentally for successful extension workers, at all levels, for their own continuing education and professional development. Although extension workers are responsible for designing their own career development education, the extension organization sometimes sets some criteria and provides opportunities for the staff by offering options.TIME OFFICEThe department is concerned with registering the time in and time out of the workers. Other activities are related with payment of wages and leaves etc. a separate department is kept for different shifts. The daily attendance department of the employees specifies the following Section department, shift, date, clock no, grade, human resource worked.SECURITYThe security division of the Metrolla steels is well managed. It controls the movement of both material and men in to the organization. Security staff headed by the chief security officer works under three heads. To facilitate the security measures, single point entry is adopter to control visitors and materials. Separate gate passes are issued for materials section wise. The various sections to which gate passes are issued includes

raw materials stores finished goods storesVisitor's passes are also issued. Further more security lights are provided at each point. The employees are allowed to leave the factory only at the end of the shift except for the other demanding reasons.EMPLOYEE STRENGTH

The employee strength of the company includes 250 employees including the management staff

workman, clerical staff, and contract employeesWORKING HOURSThere are three shifts in the companyA shift - 6am to 2pmB Shift - 2pm to 10pmC shift - 10pm to 6amSALARY PAYMENTAll supervisory personal are required to open savings bank account with the federal bank, and intimate the account number to the accounts department who in turn will remit the salary. The average salary for an employee is RS8000/month. The salary includes dearness allowance, food allowance and mobile phone allowance. The traveling allowance is not included in the salary if depends for an employee.

ENTRY AND EXITAll employees are given photo identity badge and all outside entering are issued a visitor pass. The security section regulates the entry and exit of personal and material to the factory. In case of materials, a separate pass is necessary for both entry and exit. When materials are entered, the vehicle has to move to the weighting bridge to ensure the weight. The weight is recorded in the computer automatically along with the number, and the model of the vehicle.

ATTENDENCE PROCEDUREIdentity badge with the photo of the respective personal are supplied to the employees. On arriving for duty each person should sign in the attendance register. The time is entered by the security in the gate. The same process is repeated while leaving the factory alsoLEAVESUnder the existing rule, employees are entitled to the following types pf leaves namely:Casual leaveLeave availed of in the nature of personal engagements and of casual nature will be adjusted against casual leave standing to the credit. However, if the is no casual leave standing to the credit, it will be adjusted to the privilege leave only. Under no circumstances privilege leave will be adjusted against sick leave. Further not more than three casual leaves can be availed of a stretch.

Sick leaveThis is admissible in case of sickness. However, not more than 3 days leave can be availed at a stretch without the support of a medical certificate issued by a registered medical practitioner. A maximum of 80 days sick leave may be accumulated, subject to the leave rules at present.Privilege leave The term privilege leave is synonymous with "earned leave" or "annual leave" and is meant for I an employees rest and recuperation. The company therefore expects that an employee will avail of privilege leave of at least once in each year, and have an enjoyable holiday so that he returns to the work fully refreshed.Privilege leave can be availed not more than three times in a year. However the management through special order allows privilege leave on more than three occasion in an year keeping in view the special circumstances of the case Subject to the existing leave rules in force a maximum of 270 privilege leaves may be accumulated, at the time of retirement or at the time of cessation of the service

PromotionPromotion is decided on the basis of consistently good performance over a period of time as assessed and recommended by the respective departments/ functional head after discussion with the head of the human resource department opt the manager at the respective plant locationPerformance appraisalPerformance appraisal is done every year each employees performance is presented before the committee which may further consider about promotion

TransferAs stated in the terms of appointment employees liable to be transferred from one unit to the other or one department to the other as may be deemed necessary in the interest of the company's business. In the case of location transfers the expenses of moving the employee's family and house hold effects would be born by the company life with the provision of prevailing tA/DA rules

Increments/ rewardsDepending up on employee's performance, the employee will be graded increment as on 1stApril every year provided you have joined the company before 1st October of the preceding year.The proceeds may some what vary from one unit or bossiness location to the other. The

employee cannot demand increment as a matter of right it will be purely based on the employee'sperformance of the proceeding year, as accessed and recommended by the respective

departmental or unit headIn case of very good performance the management may decide to give further recognition either

in status or in monetary terms, or in appreciation of the employees work and contributionsThe criterion of fixing rewards is the valve addition of the employee, potential for growth and

the competence etc. the company follows a system known as the talent [pool system. The main

emphasis of the talent pool system includes continuously improves the managerial leadership capacity

sustains flow of talent up through the organization

ensures proactive training and development

places the right person in the right role at the right time Employee welfare scheme The types of employee welfare scheme adopted by the company includes Group term insurance The company has taken a policy for providing insurance cover in an unfortunate death of an

employee during employment with the companyGroup personal accident insuranceThe company has taken a policy for its employees for covering the risk arising out of accidents

and resulting in partial or total disablement or deathGratuityAn employee is entitled to receive gratuity if he has continued five years of continuous service

with the company. The qualifying period of five years is not necessary in case where the

termination of service is due to the death or total disablement.Safety PolicyMetrolla steels firmly believe that health and safety is one of its prime concerns. It is thecompany's policy that the management shall do all that is reasonable to provide a safe andhealthy workplace and make every possible effort to prevent accidents and minimize healthhazards in the company's operations, maintenance and other plant activities. To achieve this objective: Metrolla steels will strictly comply with relevant statutory provisions and adhere to various technical codes and standards.

The company has set up a fire and safety department managed by qualified professionals who will be closely associated with the day-to-day operations of the plant, and who will also impart relevant training to the employees. This will ensure that safe, healthy and environment-friendly conditions prevail within the company, and that accidents are prevented. The company is committed to involving its employees in safety activities through their active participation in safety committees meetings, fire drills and safety week celebrations. The safety performance of each employee will be evaluated at the time of his or her annual appraisal and career advancement review. The company will consider safety and health as a primary criterion in the selection and procurement of plant, equipments and materials.

The company shall impart adequate training to employees to improve safety within the company.

The company shall periodically assess the status on safety, health and environment by using various techniques such as safety audits and risk assessments.Emergency PreparednessTo check the emergency preparedness, we conduct mock drills including fire drills at regular intervals.AwarenessIncreased awareness always helps in accident prevention. To make the employees aware of the hazards associated with their work, the company has put up safety instruction boards, posters and slogans at all key locations.Statutory ComplianceAs spelt out in our safety policy, we strictly adhere to the provisions mentioned below:1. Factories Act 19482. Petroleum Act 19343. Indian Electricity Act 19104. Indian Boiler Act 19235. Environment Protection Act 1986QUALITY CONTROL DEPARTMENTQUALITY POLICY METROLLA STEELS LIMITED will strive to meet customer requirements to ensure customer satisfaction. Our endeavor will be to optimize the processes so that quality products are made available to customers at competitive rates . They will ensure compliance to statutory rules and regulations in letter and spirit. The Company is committed to make continual improvement in the quality management system.

Objectives The company will ensure communication within the organization regarding the consumer requirements.

All employees will be encouraged and motivated to work as a team and participate in the endeavour of optimizing processes.

Safety of the employees and conservation of energy are two prime objectives of the organization.

The company will do their best to minimize the adverse effects on the environment through monitoring the processes and implementing the actions identified.

To Ensure Quality :- Metrolla steels limited is widely recognized over South India as a high class manufacturer and a reliable supplier of quality steel bars with ISI certification.

Metrolla has been certified by the TQCS International Pty Ltd as an ISO 9001-2000 certified manufacturer, capable of supplying internationally acceptable quality steel products.

Various testing procedures followed for testing Metcon TMT as per IS : 1786

IS:1786 are standards for specifications for High Strength Deformed Steel Bars and Wires for Concrete Reinforcement. They cover bars of grades like Fe-415, Fe-500 etc.A ) Test for chemical propertiesThe material is analysed chemically in the advanced chemical laboratory of Metrolla steels ltd., twice during production . The chemical tests for finding the chemical composition are done. The metal is tested for carbon, sulphur, phosphorous, manganese etc.

B) Test for physical propertiesThe metal is tested for its physical properties like weight, length, cross sectional area

And size.C) Test for mechanical propertiesThe following tests are conducted for finding out the mechanical properties of the metal;

a) Testing done on universal testing machine ( UTM ) :

Using the UTM ,the metal is tested in the advanced mechanical laboratory to find out the proof stress ( N/mm2) ,Yield Stress (N/mm2 ),Ultimate Tensile stress ( N/mm2 ) and percentage of elongation .

b) Bend test : Metcon TMT Bars perfectly meets IS : 1786 ( Indian) and BS 4449 ( british) standards in the bend test.c) Re bend test:

Metcon TMT Bars perfectly meets IS : 1786 ( Indian) and BS 4449 ( british) standards in the rebend test. Metrolla steels believes in the internationally accepted concept of E2P2. With this concept, the company is able to minimize our wastage, by the process of recycling.

ENERGY CONSERVATION CONCEPTEnergy Efficiency and Pollution Prevention (E2P2) involves efficient and optimized simultaneous use of energy and resources to enhance productivity and profitability and at the same time reduce energy consumption and minimize the production of environmental wastes. Metrolla Steels Limited tries to implement this concept, and constant researches are going on in this area.

Energy Efficiency (E2) concept is simply the utilization of energy to its maximum potential. Although energy constitutes the major portion of the total annual operating cost of a company, since it is involve in every process and operation, it also has the largest potential for significant savings. When energy inputs are optimized, financial operating results significantly improved.Pollution Prevention (P2) concept on the other hand applies the efficient use of materials to minimize if not eliminates wastes and their impact to the environment. For most of the manufacturing companies, waste is a sign of inefficient process and material conversion into useful products. Thus, minimizing wastes enhances productivity and product quality.E2P2 is a two-way approach and has been proven to be cost effective in many cases. While E2 approach focuses on improving or maximizing the existing processes, the P2 on the other hand focuses on restructuring the processes to optimize the use of materials and eliminate wastes. The E2P2 combined approach is workable because of the simple reason that energy is a necessary and therefore integrated in all processes steps and business operations. In a typical manufacturing scenario for instance, end-of-process wastes normally requires significant amount of resources (i.e. energy and materials) to produce. Therefore, in reducing that waste, the energy and materials required in its production can be reuse and converted into more salable products. Also, the other costs associated with that waste would be avoided and utilized for other needs of the company.

E2P2 followed by Metrolla Steels Limited, is therefore, a rational and proactive initiative involving,

Process and/or procedure modifications

Equipment and/or technology modifications

In-process recycling

Product and/or Raw materials reformulation

Housekeeping improvements

Operation and maintenance improvements Future Plans Of The Company Metrolla's immediate plan in the future is to implement international standards such as ISO 14001, which will bring about the following benefits to the firm.

Materials savings from more complete processing, substitution, re-use or recycling of product inputs

Increases in process yields

Less downtime through more careful monitoring and maintenance

Improved utilization of by-products

Conversion of waste into commercially valuable forms

Reduced energy consumption

Reduced material storage and handling costs

Savings from safer workplace conditions

Reduction of costs associated with emissions, discharges, waste handling, transport & disposal

Improvements in the product as a result of process changes

Higher quality, more consistent products

Lower product costs (e.g. from material substitution)

Reduced packaging costs

More efficient resource use

Safer products

Lower net costs of product disposal to customers

Higher product re-sale and scrap value FINANCE DEPARTMENTThe Finance departments has two section namely1. Accounts2. Taxation1.Accounts departmentThe account department is further divided in to purchase department and payroll section

Purchase sectionPurchase is mainly done by the factory and materials are directly send and stored in the factory.A separate department called purchase department exists in the factory. However finance is handled by the head office and funds are allocated on a weekly basis and in case of urgency on a detailed basis All paper works and quotations and price bargaining are handled by this section. This section also handles the paperwork regarding materials between the head office and the factory.

Pay roll sectionThe payroll section in coordination with the marketing department handles the payroll. Only after the marketing departments clear each candidate, the pay slip is send. Increments and deductions are calculated according to inputs received from the marketing department based on target achieved and goals accomplished

2.TaxationThe taxation is handled by the chief financial controller of the company. This departments handles all the financials decision and working capital management etc, this section also take cares of going in to appeal shading the finance of the joint venture withdrawals with other companies outside India.

BudgetsSince the steel industry mainly depends on sales, the budget prepared is a sales oriented budget.All the department heads come up with a department budget to form a company budget and comparisons are made with the previous year's budget, past few years trend in budget allocation is of the following figuresMaterials 50%Payroll 9%Marketing 20%R&d15%Capital structureMetrolla steel is a public limited company, where the shares are held by the members of the company. Since the company has not raised any fund from the public, the capital structure of the company includes only those funds contributed by its members. The working capital is given by the federal bank.TURNOVERThe company has an average turn over of RS 450 crores during the last year that is in 2005-2006. The company's turnover is rising at the rate of average 15% every year. The rapid rise is due to the increase in the consumption that is by the construction sector.PROFITThe profit of the company is also rising at a rapid rate. Last year the approximate profit after tax made by the company was RS 4 Crores. SWOT ANALYSIS

Strengths:

Availability of raw materials

Location of plant

Cheap labour availability

Low cost raw materials

Absence of labour unions

Premium quality products

First in its sector to gain ISO certification for premium products

High market share

Continuous improvement in production process

Less advertisement charges

Weakness:

1. Price fluctuation is random.

2. Workers need high proficiency

3. High cost machineries

4. High energy consumption

Opportunities:

1. Growth of infrastructure sector in national level.2. Globalization of economy supports import of raw material.3. Less requirement of promotion programmes.4. More favourable government policies.5. Company can extend the market in national or international level.Threats:

1. Increased competition due to liberalization of economy.2. Fast changing technology.3. Lessened availability of labour.4. Presence of fake or less quality products in market at very low price.OBSERVATIONS:

1. METROLLA STEELS enjoy high market share in the local market.2. METROLLA STEELS gives more importance to quality of the products.

3. The company maintains an employee friendly atmosphere.

4. Each worker has job satisfaction.

5. Safety measures are taken and each employee is well equipped for the risk in his job.

6. The company does not promote union activities in side the campus.

7. Proper grievance handling is done.

8. Little importance is given to Management Information System.

9. Less fund is allotted for promotion activities.

METROLLA STEELS is constantly striving for improving product quality and standardsSUGGESTIONS:

1. Better promotion activities are to be conducted.

2. Introduction of MIS may improve the overall performance of the organization.

3. Proper training programmes at required intervals may add up production along with quality.

4. Performance appraisals may be done to improve self esteem of the employees which will result in better job satisfaction.

5. More research works may be conducted to improve the product quality.

CONCLUSION:

METROLLA STEELS is a name that stands for quality in TMT steel bar manufacturing. The product of the company METCON TMT BARS are manufactured in line with the quality guidelines laid by ISO specifications. The company plays a vital role in the local market for TMT bars. The commitment of the employees helped the company to retain its high market share.

The long vision of the management and their urge for maintaining premium quality of their products pushed the company forward to be the market winners in such a highly competitive field. The company also puts forward a great success of a small scale industry, which gives a high level confidence to the budding entrepreneurs.

METROLLA STEELS is now progressing towards attainment of better certifications for quality and more advanced production processes.Helpers

Fitters

Clerks

workers

electritians

QC assistant

Supervisors

supervisors

ENGG

Quality Check

ENGG

Production..

ENGG

Maintenence

Sales & Purchase Manager

Store Manager

HR Manager

Finance & Admn Manager

Plant Manager

Managing Director

General Manager

Board of Directors

Helpers

Accountant

Computer operator

Store keepers

Marketing Executives

Computer Operator

Clerks

Clerks

Clerks

Clerks

Helpers

Helpers

General Manager

Marketing

Senior Manager, Marketing

Senior Manager, Sales

District Marketing Manager

District Marketing Manager

Area Sales MAnager

Area Sales Manager

Sales Executives

Sales Executives

Production Plant

Direct Distribution

Indirect Distribution

Producers Retail Chains

Retailers

Consumer

Consumer

Retailers

Industrial Sites

Producers Retail Chains

Field Ware house

In Plant Warehouse

Manufacturer

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