Kirloskar PROJECT FILE 2012

An Organizational Study At Kirloskar Ferrous

CONTENTS
CHAPTER NO TITLE PAGE NO.
1. INTRODUCTION 2-13
1.1 GENERAL INTRODUCTION
1.2 OBJECTIVE OF THE STUDY
1.3 LIMITATIONS OF THE STUDY
1.4 INDUSTRY PROFILE
1.4(A) BACKGROUND/ HISTORY
1.4(B) CURRENT PRESENT STATUS OF
THE COMPANY
1.4(C) GROWTH & DEVELOPMENT OF
THE COMPANY
1.4(D) FUTURE OF THE INDUSTRIES
2. COMPANY PROFILE 14-41
2.1 BACKGROUND/ HISTORY OF THE
COMPANY
2.2 AREA OF THE COMPANY
2.3 VISION, MISSION, CORE VALUUES &
OBJECTIVES OF THE CIMPANY
2.4 PRODUCT PROFILE

2.5 ORGANIZATION STRUCTURE
2.6 BOARD OF MANAGEMENT
3. FUNCTIONAL DEPARTMENTS 43-67
4. POLICIES OF THE COMPANY 69-74
ACHIEVEMENTS/ EVENTS
5. SWOT ANALYSIS 76-80
FINDINGS
SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY
ANNEXURE

REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE
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CHAPTER: 01
INTRODUCTION

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1.1 GENERAL INTRODUCTION

We are a 600 Million US Dollars engineering conglomerate
driving critical industries. We are century old pioneers in our
areas of specialization like power, construction and mining,
agriculture, industry and transport, oil and gas and environment
protection with a range of world-class industrial products and
turnkey services.

We are made up of 8 major group companies, each led by
the best engineering and managerial talent in India. In addition to
engineering, we have interests in civic utility systems and in
Information Technology and communication.

Our multi-unit, multi-product, multi-location conglomerate
is built on the plinths of Experience, Expertise, Quality, Innovation
and Values in the business. Our best play is successful work and
creation of a new industrial order where we can provide tailor
made solutions to the customers.

At Kirloskar, listening to the customer and his needs is a
tradition as old as the group itself. For it are they who drive us

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further, making us reach higher, and engineer better solutions. In
the customer's often unspoken wish for better implements lays the
seed for a new invention, a path-breaking industrial concept.

1.2 OBJECTIVE OF THE STUDY

 To understand the activities of organization Kirloskar
Ferrous Industrial Limited.

 To examine each and every department and its functioning in
the organization.

 To analyze the performance of the company.

 To study the SWOT analysis.

1.3 LIMITATIONS OF THE STUDY
 Time allotted for project work was short hence it was not
study was based on more of secondary data that is available
in the form of reports and documents.

 The study was carried out in only one of the divisions of the
Kirloskar and with limited knowledge.

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 Head office was undertaking all the activity of Kirloskar
Ferrous Industries Limited.

1.4 INDUSTRY PROFILE

1.4(A) BACK GROUND/ HISTORY

The steel industry is experiencing one of the longest
upswing periods for many years. Since the beginning of 1987, steel
production has been riding for almost 29 months, with 1988
bringing an increase of Western world output to 488 million metric
tons of crude steel, or 8% more than in 1987. Demand from
neighboring China the words first biggest steel maker and users
also becoming all the economic growths and country builds
stadium for the 2008 Olympics in Beijing.

These favorable prospects raise hopes that steel makers are
entering into a period of greater stability. It would seem as if the
painful economic adjustment process, which has been lasting for
many years, is nearing completion, and that the adoptions of steel
capacities, technologies and management attitudes to the changed
patterns of economics growth are finally starting to bear fruit.

Government policies and the international monetary system
with pegged but adjustable rates and U.S. dollar as a reserve

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currency has favored this rapid growth. This period is commonly
called the “post –war reconstruction period.” The intensity of
steel’s economic growth was rising by a vast rate between 1950-60.
In Western Europe, steel jumped by 30%, in Japan by 58%
and in Brazil by 41%. The effect on steel consumption increased by
an average of 5.2% a year between 1950 & 1960. The industrialized
countries expanded their steel use by 4.8% per annum. The
developing nations did so by as much as 8.9%.

Between 1960 and 1970, Western World steel consumption
grew by 5.7% a year, with the industrialized countries expanding
their steel usage by 5.6% a year and the developing countries by as
much 6.5 % a year.

The steel industry has harvested to the bitter fruit of this
excessive optimism in the firm of overextended capacities
throughout the world. Steel is not without lots of company in that
regard.

Another important influence on steel intensity is the
replacement of steel by other materials. Calculating that portion of
the reduction in the specific consumption of the steel that is due to
the use of other materials is extremely difficult.

However, estimates made by the International Iron and
steel Institute would seem to indicate that for all of the Western
industrialized countries the rate of substitution of materials such

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as plastics, aluminum, glass and timber for steel is presently
standing at between 2 and 5 percent of steel consumption.

Earlier to the Government liberalization and de–licensing
policies in 1991–92, there was mainly two Pig Iron producers in
the Indian market; the two Pig Iron producers were TISCO and
SAIL. They used to produce basic grade Pig Iron which contains
less silicon content when conversion to foundry grade Pig Iron. So
when this is to be used by the foundries they have and Ferro
silicon for the conversion to foundry grade also the availability
quantity of Pig Iron to the foundries was very much limited
because only of ISCO and SAIL were looking after all the
foundries in India.

After the liberalization and de-licensing policies of
government and private sectors showed keen interest in the Pig
Iron manufacturing units that to in the production of foundry
grade Pig Iron, TATA group in collaboration with Korf Brazil
started supplying mini blast furnace of 250 cubic meters. When
blast furnaces were available, many private sectors started.
Producing Pig Iron among them, Sese, Goa, and Usha Ispat, Sisco
(Southern Iron and Steel Co. ltd). Uni Metal, Meco, Lanco,
Sathavana, Kirloskar are main. These all Pig Iron producers
started producing mainly foundry grade Pig Iron.

1.4(B) CURRENT/ PRESENT STATUS OF THE COMPANY

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India is gifted with large quantity of Iron ore with a high
ferrous (Fe) content, which is the crucial raw material for
producing the steel. Hence India is on of the largest producers of
steel in the world. With the liberalization, globalization of
economy in the process. There is a significant scope for economic
development, which means there will be focus on the
infrastructure. This will lead to considerable demand for steel. As
its main applications are in the construction, engineering and
automobile sector, which are key elements in building the
infrastructure steel in universal intermediate and has very strong
forward and backward linkages hence steel industry has become
one of he core sector of the economy.

Though India is one of the largest steel producers, it has a
very low per capita consumption of steel in comparison with other
developing and developed countries. As demand for steel is on the
rise we can expect good rise in the consumption.

India is fortunate in having intensive iron ore deposits
with reserves estimated at10.3 billion which is more than 1/4th of
the world’s reserves. Further the average iron ore content on India
ore is above 60% in India, the iron or reserve are mainly found in
the states Orissa, Karnataka, Bihar, Madhya Pradesh, GAO,
Andhra Pradesh, Rajasthan and some parts of western
Maharashtra. When we think of the industry steel, the first thing
that comes into is Pig Iron. This is because of its name. To put into
simple words, when molten metal from the blast furnace is paired

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into moulds and solidifies it assumes a shape which resemble the
back of a Pig. Hence the name “Pig Iron”.

1.4(C) GROWTH & DEVELOPMENT OF THE COMPANY

India has traditionally been one of the major producers
of steel in the world. Till the 1990s the steel industry of India was
regulated and controlled by government policies.

After the economic reforms of the early 1990s, the Indian
steel industry has evolved significantly to conform to global
standards.

India has set a vision to be an economically developed
nation by 2020. The steel industry is expected to play a major role
in India’s economic development in the coming years. The steel
industry of India has a very high growth potential and is expected
to register significant growth in the coming decades. India is
expected to emerge as a strong force in the global steel market in
coming years.

The major aspects that are expected to play a significant
role in the growth of the steel industry in India are-

 Construction
 Housing

 Ground transportation

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 Hi-tech engineering industries such as power generation,
petrochemicals, fertilizers

The current scenario of the Indian steel industry that
there is huge growth potential in this industry. The per capita-
consumption of steel in India, according to latest available
estimates, is only 29 kg. This is much less compared to the global
average of 1-10 kg. The per capita consumption level of developed
nations like the United States of America is 400kg. In this respect,
one of the major initiatives that need to be taken is to focus on
increasing the consumption of steel in the rural areas of India. The
potential for the growth of consumption of steel in the steel of
India for purposes like rural housing, rural infrastructure, etc is
high which to be tapped erriciently.

In order to realize the growth potential in the steel
industry of India, it is essential to ensure that the industry can
remain competitive. One of the major aspects in this regard is the
availability of inputs. Shortage of inputs like coke has led to
increase in costs earlier. Moreover proper infrastructure facilities
like transport infrastructure, power etc are of prime importance in
maintaining the competitiveness of the industry.

Most developed countries have regulations that are
aimed to protect the domestic steel industry. The industry steel
industry has comparatively much lesser protection through
regulations. Proper regulatory measures should be adopted by the
government to protect the domestic steel industry.

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1.4(D) FUTURE OF THE INDUSTRY

There are certain challenges before the steel industry of
India in the recent times, India has been one of the major
producers of steel in the world and has also been attracting a lot
foreign direct investment.

A few issues would need to be attended to if India
wants to be counted as one of the major and most economic
producers of steel. The three areas that need to be improved upon
in the view of the exports are the infrastructure, ability to draw the
top names in steel, and wealth creation issues.

The condition of the infrastructural facilities of the steel
industry in India is not at all conductive to a sustainable growth
and development of the steel industry of the India.

The methods that are adopted for the creation of wealth
in the Indian steel industry are also supported to act hindrances to
the growth and development of the Indian steel industry. The
Indian steel industry has also not been able to draw the best
professionals in the steel industry and that has been a major draw
back of the industry.

The experts are also of the opinion that not enough
policies or measures have been adopted to amend the situation i
case of the infrastructural facilities available in the steel sector.
Even through India is capable of producing steel at a good rate

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and also increase the volume of production there is not enough
land available to support such activates. One of the major reasons
of such problems is the consistently increasing population of India.

The design institutions in India have not been
successful at recruiting the best of engineers and metallurgists in
India. This has affected the technological aspect of the Indian steel
industry. The exports are of the opinion that this issue has to be
countered in order to reduce the dependence on the overseas
technological assistance. The steps are taken by Tata Steel are
instructive in such a context. The company has been increasing
public awareness about the steel industry through books and
educational sessions at the Indian Institute of Technology at
Kharagpur.

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CHAPTER: 02
COMPANY PROFILE

COMPANY PROFILE

COMPANY DETAILS:
Year of establishment: 1994
Sales turnover 2005-06: INR 4,827
Million, USD 105 Million
No. of employees: 940(785+155)

BUSINESS AREA:

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Pig Iron

PRODUCT RANGE:
Pig Iron: Foundry Grade,
S.G. Iron Grade & Basic Grade

CHAIRMAN & MANAGING DIRECTOR
Mr. Atul C. Kirloskar - Chairman
Mr. R. V. Gumaste - Managing Director

MANUFACTURING UNIT & ADDRESS OF UNIT:
Kirloskar Ferrous Industries Ltd., Hospet.
P.O. Hitnal 583 234 District - Koppal, Karnataka, INDIA
Tel.: +91 8539 286711, 286712, 286715, 286715, 286762, 286767
Fax: +91 8539 286706, 286714
E-mail: castings@kirloskar.com
REGISTERED OFFICE ADDRESS:
Laxmanrao Kirloskar Road, Pune 411 003, Maharashtra, INDIA
Tel.: +91(20)25810341, Fax: +91(20)25813208, 25810209

2.1 BACKGROUND/ HISTORY OF THE COMPANY:
The Kirloskar
group origins were small but significant. In the
year 1903, Sri, Laxmanrao Kashinath Kirloskar
opened a bicycle shop in the state Karnataka in
south India. From this modest venture has grown
the Kirloskar group of more than 15 manufacturing company with
an annual turnover exceeding 116 millions pounds string and
engineering field in India. A Kirloskar product includes pumps,

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farm machineries, machine tools, diesel engines, electrical
machinery a wide variety forgings electric switchgears and
tractors. The vast Kirloskar group is the result of industrial Vision
of Shri. L.K.Kirloskar, many overseas factories are Located in the
West Germany Philippines, Malaysia and Kenya.
THE FIRST KIRLOSKAR GROUP COMPANY:

Kirloskar Brothers Limited (KBL) - the first Kirloskar
venture at Kirloskarvadi was to become the base for all
of the Kirloskar Group's subsequent enterprises. It
began as the only Indian company with its own
standard products - the fodder cutter and the iron
plough, which competed with the British products.

KBL also manufactured groundnut shellers, sugarcane
crushers and pumps, which were to usher in a new economic
order in the Indian industry. To power these machines, diesel
engines, coal gas generators and electric motors were developed at
Kirloskarvadi.

In a display of great versatility, KBL then shifted its
focus to fluid handling and control. As India's largest
manufacturer of pumps and valves, and also the group's flagship
company, KBL lends its strength and expertise to every new
venture of the Kirloskar Group.

PLAYING A PART IN THE WAR:

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The intensified boycott of the British goods and the
approaching World War threatened to stop imports of machine
tools into India. The Kirloskar, with characteristic foresight began
making machine tools. This paradigm shift of sorts, from farm
implements to machine tools, created a new company - The
Mysore Kirloskar Limited. This company, situated in Harihar,
benefited greatly from the patronage of yet another Raja - the
Maharaja of Mysore. In the first month of production, Mysore
Kirloskar sold all of manufactured seven lathes.

The new generation -Innovation, creation, tradition
From colonialism to independence:

An important change, for the country, and for one of
its premier industrial houses, the Kirloskar Group. The altered
political climate of the 1940s heralded the end of the princely
patronage for enterprise. The policy shifts and changes in
authority were the order of the day. This marked a turning point
for the group.

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Shantanurao Kirloskar, the eldest son of the founder
travelled to Pune to initiate a new aspect of the
group's activities - diesel engines. His experience of
trying to secure the land for his factory in Pune was
quite different from his father's in Kirloskarvadi.
There was no benevolent ruler here to bestow acres
gratis. Shantanurao had to face the tangle of red tape
and public resistance to acquisition of land for
industrial purposes.

Finally, after arguing that factories have a longer life
than human beings Shantanurao Kirloskar won a place for
Kirloskar Oil Engines Ltd. (KOEL), twelve months after signing an
agreement of collaboration with Associated British Oil Engines
Export Ltd. of UK.

This collaboration, incidentally, was the first of its
kind between an Indian and a foreign company, and signified a
bridging of the technological gap between east and west.

The KOEL factory was incorporated in 1946, and
soon after that gave India her first vertical high-speed engine.
Brijlal Sarda, who reported its satisfactory running for over 4
decades, bought this first engine!

TO ELECTRIC MOTORS & PNEUMATICS:

The making of the electrical motor. This was the
second of Laxmanrao Kirloskar's long cherished dreams, the first

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being the making of an engine. This task was brought to
completion by Ravi Kirloskar, his youngest son, in 1946. Way back
then, the authorities whom Ravi Kirloskar had approached for
land were astonished by the request for 25 acres. Today, Kirloskar
Electric Company Limited (KECL) has four plants occupying
several times that acreage.

The setting up of KECL and other Kirloskar
companies saw a major role being played by
Nanasaheb Gurjar, a lawyer who made industry
his sole area of operation. Though the
development of air compressors was an
established activity at Kirloskarvadi, a full-
KECL's logo in
the 40's fledged plant to manufacture the same was set up
at Pune in 1958, under the eventual management
of Shreekant Kirloskar, Shantanurao's youngest son. In
collaboration with Broom and Wade of England, Kirloskar
Pneumatic Company Limited began the manufacture of air
compressors and pneumatic tools.

THE KIRLOSKAR GROUP OF COMPANIES:

1) Kirloskar Brothers Limited (KBL):
It becomes the only India Company with its own standard
products the folder cutter and the iron plough, which competed
with the British product. Established in year 1988 and
incorporated in 1920 is the acknowledge. Leader in fluid
handling and largest manufacturing and exporter of pumps in

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India. It has acquired SPP, VK in Nov 2003 consisting at three
plants in UK, USA and Africa manufacturing fire fighting
pumps, water and sewage pumps.

2) Kirloskar Oil Engines Ltd. (KOEL):

It is incorporated in 1946. It has six plants with 2828 employees,
manufacturing Diesel engines, Generating sets, Engine bearing
and values.

3) Kirloskar Pneumatic Company Limited (KPCL):

It is incorporated in 1957, KPCL is India’s leading name in
manufacturing of reciprocating compressors, screw and
centrifugal compressors, tractor gears, gearboxes, refrigeration
projects.

4) Kirloskar Ferrous Industries Limited (KFIL):

It was incorporated in the year 1992 with 2 plants
manufacturing Grey iron casting and Pig iron with 1259
employees.

5) Kirloskar Copeland Limited (KPC):

It established in 1966 and incorporated in 1993.

6) Kirloskar Ebara Pumps Limited (KEPL):

It was established on 13th Jan 1988 as a joint venture promoted
by KBL and EC with a mission to equipments like process
pumps, steam engines, fans etc. Required for critical application
in Hydrocarbon Processing industries and for power projects.

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7) Kirloskar Chillers Pvt. Ltd.

It was incorporated in the year 1996. It has a single plant
producing centrifugal chillers, screw chillers, reciprocating
chillers

8) Kirloskar Middle East F2E:

Established in 1997. Kirloskar group of companies has been
exporting their products to various in Middle East Africa and
other markets in South East Asia for more than 3 decades.
KMEF caters to its markets and customers through network of
more than 50 outlets.

Kirloskar Ferrous Industries Limited

Establishment Year 1991
Incorporation Year 1994
No. Of Employees 1207(including 201 trainees)
Chairman Atul C Kirloskar

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Company Secretary C S Panicker
Registered Office 13 Laxmanrao Kirloskar Road, Khadki, , , , Pune -
411003, Maharashtra
URL http://kirloskarapps.kirloskar.com
Auditors P G Bhagwat
Listing BSE , NSE
BSE Code 500245
NSE Symbol KIRLOSFERR
BSE Group B
Index Constituent of BSE SmallCap
Face Value (Unit Rs. INR) 5.00
ISIN INE884B01025
Registrar Details Link Intime India Pvt Ltd - Pune, Akshay Complex,
Block No. 202, 2nd Floor, Off. - Dhole Patil Road,
Near Ganesh Temple, Pune - 411001, Maharashtra
2.2 AREA/ LOCATION OF KIRLOSKAR FERROUS INDUSTRIES
LIMITED (KFIL):
 Kirloskar Ferrous Limited Co. was incorporated on 10th September
1991 as a Public Limited. Kirloskar Oil Engines Ltd. and Shivaji
Works Ltd promote the company. The main objective of the
company is to manufacture Pig Iron and ferrous casting. The
company commenced production in 1994 and up an additional
blast furnace in 1995.

 Kirloskar Ferrous Industries Limited is located at Bevinahalli of
Koppal district. Spread over 200 acres of spacious land with lush
greenery around. Kirloskar Ferrous Industry Limited has 2 mini
blast furnaces each of 250 M3 working volume, technology and
design of TATA-KORF limited in technical collaboration with Korf
technology Brazil for extracting pure iron ore.

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 Each furnace producing 1, 20,000 tones of Pig Iron metal/year. The
plant manufactures foundry grade Pig Iron suitable for automobile
castings.

 Raw materials are produced from Sandur and Donimalai sector
near Hospet, abundance of rich iron deposits are available in these
areas. Fluxes such as limestone, dolomite, quartzite and
manganese are available in the nearby surrounding area. Both iron
ore and fluxes are easily accessible by road. Coke is imported from
China or Japan which is unloaded at GAO / Chennai / Mumbai
port and brought to the work site by rail or road. Coke is biggest
raw material to the company and it accounts for almost 80% of
raw material costs. Kirloskar Ferrous Industries Limited is the first
pig iron manufacturer in India with QS 9000 certification.

 Company located on the banks of the Tungabhadra reservoir at
Hospet near to the rich iron ore belt of the Hospet- Bellary range,
with the Kirloskar philosophy of adopting cutting –edge
technology from around the world adapting it to Indian
conditions, is today committed to delivering casting of
international quality in order to ensure the highest levels of
customer satisfaction.

NATURE OF BUSINESS CARRIED:

1. Casting and Ploughs

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2. Compressors pumps, electric Power

3. Machine tools

4. Engines and components, diesel engines

5. Hotels

6. Advertising

7. Financial Services

TIME LINE OF KFIL:

1994 Year of inception

1994 Commercial production of Pig Iron from Mini Blast Furnace I

1995 Commercial production from Mini Blast Furnace II

1995 ISO 9002 certification

2001 QS 9000 certification

2002 ISO 14000 certification

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2.3 VISION STATEMENT, MISSION STATEMENT,
CORE VALUES, OBJECTIVES

VISION STATEMENT

Business for us is the best service, customer care and a
lifelong relationship. “To be a world class product leader through
the STATE OF THE ART manufacturing technologies and process.”

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Where are we headed?

We believe in synergy and its limitless power of unifying. It
is not limited to our group. It extends to the realms of
customer/collaborator relations, investor interactions and into market
trends analyses and technological advances. It is the only way we
ensure that when an endeavor is made by several different elements,
the result is of a far higher quality than what could have been achieved
by each element acting alone.

How do we plan to reach there?

For the Kirloskar Group, engineering excellence is not an
end, but a journey. An array of business solutions stand testimony to
the fact, that good business values, pillared by expertise can work
wonders. Solutions, which are crafted from a solid base of developing
and manufacturing, generate reliable products and superior service.
Through which, continual measurement of customer satisfaction is
offered. It's a commitment rather than a ritual.

MISSION STATEMENT

 To produce quality castings & Pig Iron as per world standard to
cater the needs of domestic and international markets and to active
“Total customer satisfaction” Through professional system and
practices in every field, giving weight age to development of human
resource available in the org and ultimately to become one of the
best (in term of quality, turnover and efficiency) in India.

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 To activate the culture of involvement, team works participation
unity and this achieves excellence in all efforts and activities by each
one here at KFIL.

 To establish a clean, Tides and green revolution free environment
highlighting the fact that we are for Mother Nature.

 To be a projected to external world a progressive well managed well
maintained professional organization.

CORE VALUES

To achieve the mission and vision, KFIL divided following Values:

 Customer orientation
 Vendor Development

 Development of Human Resource

 Process and product excellence

 Responsible corporate neighbor

OBJECTIVES OF THE COMPANY
To know the employee satisfaction towards the company

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 To know the problem faced by the employee in the working
condition
 To know the cause for the problem
 To know the interpretation ship between the employee and
the organization
 To analyze the problem and give suggestion for it
 To create a peaceful and harmonious working environment.
 To attain leadership in the market through service
 The firm aims at the fulfillment of the required industrial
development in India.
 Committed to deliver products and services to satisfy the
needs of the customers
 To make continuous efforts to improve quality by continuous
training
 To activity involve people to contribute towards high
productivity through team word and innovation.
 It aims of the training and production of skilled personnel
 It aims to the improvement of the locality
 It aims to contribute towards the economy of the country.
 It aims to provide employment to people directly by the
company and indirectly through onside contracts.

 Aims to project itself as model to other industries as self-
sufficient, disciplined organization.

 It aims to resources locality available and to raise them to
global standards.

2.4 PRODUCT PROFILE

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An innovative technology from KTS(KORF Technological
Sidervrgica Ltd.) Brazil has helped KFIL to design and develop a
MBF has come a long way and has enabled many entrepreneurs to
produce more than 500 MT of Pig Iron world over.

KFIL is among the first in India to adopt this state of art
technology with computer controls to produce consistent quality
of Pig iron. KFIL also boasts of a record of projects completion of
electing the first MBF within 18 months and second MBF within 9
months.

It has got uniform crystalline pearl tie structure it is slag
free and made from the riches grade of iron ore and imported
coke. It is supplied to KFIL valued customer of the engineering
industry who cater to automotive, tractor, textile, pumps, and
spun pipes segments as well as the steel industry.

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PRODUCTION PROCESS OF PIG IRON

PIG IRON PLANT (PIP)

Pig iron is produced using raw materials such as iron ore, coke,
and fluxes such as limestone, dolomite, quantize, and manganese are
pre-requisite quantity of iron ore, coke. Fluxes are then feeded into the
furnace by means of the electronic weighing system. Consisting of load
cell, batching controller and programmable logic controllers. Pig Iron is
produced through MBF`s.

RAW MATERIALS

 Coke
 Iron ore
 Lime stones, Dolomite
 Aurtoz

Raw material brought-venders site-testing the quality-sent
ferrous through convert belts-Raw material put into the silvo-step by
step i.e., Coke, Iron ore plasles (Lime stones) quarter-heat-1300c when
Iron ore melts than it is typically for every two hours-help of drilling
machine when it is drilled the method Iron ore comes out of the ferrous
and then in load to barrel- both help of it is into the moulds and then
sent for cooling purpose when it is paused and cooled then it is ready
for marketing.

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DEMAND & AVAILABILITY OF PIG IRON (UNITS)

Years Demand Availability

2000-01 2400 3224

2001-02 2900 3469

2002-03 2700 3733

2003-04 2900 4016

2004-05 3100 4322

2005-06 3300 4650

2006-07 3600 4900

2007-08 3800 5750

2008-09 4100 5233

2009-10 4400 5474

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FOUNDRY PLANT:
1. MANUFACTURING PROCESS OF FOUNDRY CASTING:
6,000

5,000

4,000

3,000 Demand
Availability
2,000

1,000

0
1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

In the first process they prepare fiber castings and then the
same fiber mould which is prepared according to 86 the design of
customer and then according to same to fiber mould sand mould and
prepared and then they are dipped into the water for to make moulds
strong. Then they are placed in box. Then boxes are and arranged in
male and female and attached together and sent further their coal is
put on their boxes and processed to get a shape and this process in
continued. Further the moulds are sent to press pour to those boxes
with iron.

This press pour is contained of hot iron liquid after pouring
into moulds they are sent for cooling at degree of 300c. After cooling
sand is removed and sent for finishing. Press pour contained hot liquid
Iron, which is brought from Frances, which has a capacity of 30 tons
each, totally they are two foundries having capacity of each furnace of
250mt and producing about 400 tons per day. The Iron liquid is
bought to casting from first furnaces are shutdown the iron is brought
from second furnace and then steel is added to chat melted Iron.

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Foundry business is the core expertise of the group. In KFIL
the state of art technology in foundry is adopted to meet the high
volume of demands of automotive and farm mechanization sector.
This also meets the requirements like reduced wall thickness, low
machining allowance, above all receptive dimensional accuracies. They
supply castings in the domestic market companies like KOEL, TATA
Engineering Locomotive Co., Punjab Tractor Ltd., Mahindra and
Mahindra, Simpson, Maruti Udyog Ltd.

2. THE LIST OF INDUSTRIAL PRODUCTS:

The following table represents the basis of products
differentiation & the list of industries where these products are used.
Different Chemical composition is the reason for production
of different kinds of products. Mainly products are differentiated on

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the basis of silicon compensation. Company has got different kinds of
customer varying between with high or low range of silicon contents.

OWNERSHIP PATTERN

KFIL is Public Limited Company, It has issued shares to
the general public, and it gives regular dividend to share holders

COMPETITIORS TO KFIL

 NECO
 LANCO INDUSTRIES LTD
 SESA INDUSTRIES LTD
 SATHAVAHANA ISPAT LTD
 JSVL
 KALYANI STEEL LTD
PIG IRON COMPETIORS FOUNDRY COMPTITORS

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1.Sesa Goa 1. Ashok Iron Works Private. Ltd.
2.Kudharemukha Iron & Ore 2.DGP Foundry
3.Kalyani 3.Nelcast
4.JSW
5.Usha Ispat

5.7 INFRASTRUCTURAL FACILITY

PIG IRON PLANT

Mini Blast Furnace (MBF):

 Mini Blast Furnaces: 250 cubic meters – 2 nos.
 Capacity of liquid metal production : 240,000
tons per year.

 Pig Casting Machine: 2 nos.

 Capacity : 76 MT per hour.

 Spectra lab: Analysis of 18 elements in 60 seconds.

Power Generation:

 Turbine Generators: 2 nos.
 Capacity : 7 MW

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 Diesel Power Plant with capacity : 19 MW
FOUNDRY PLANT

Melting:

 ABB Make Holding / Melting Furnaces : 3 crucibles & 2 controls
 Capacity: 30 tons holding capacity, each.

 ABB make Press Pour Furnace with 7 tons holding capacity

Mould Shop:

 George Fischer makes high pressure moulding machine and
auto mould handling system.
 Type of moulding machine : Air Impact Plus

 Speed : 70 moulds per hour

 Box Size: 1250 X 900 X 400 / 400 mm.

 Core setting mechanisms: 2 nos.

 Sand Plant with capacity of 110 tons per hour with mold
ability controller.

Core Shop:

Cold Box Core Shooters:

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 Core Shooter capacity : 40 liters
 Number of core shooters: 20 nos.

Shell Core Shooters:

 Capacity : 40 liters, 20 liters and 15 liters
 Number of core shooters: 10 nos.

Casting cleaning:

 George Fischer designed Special Purpose Shot Blast machine
 Hanger type shot blast machine

Quality:

 ARL Spectrometer
 Chemical laboratory

 Sand laboratory

 Brinnel Hardness Tester

 Universal testing machine

 Casting sectioning machine

 Microscope with photo & CCTV attachment

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WORK FLOW MODEL
PIG IRON

The raw material required for manufacturing Pig iron are iron
ore, lime stone, manganese, coke and dolomite. There are 2 MBF
functioning in KFIL for manufacturing by adopting following
procedures:

PROCESS

Iron with ferrous is reduced in he presence of metallurgical coke
in a blast furnace into which they are charged along with fluxes in
après determined production manner the carbon monoxide gas that
raises up HT column or the change reduced that Iron oxide. The
molten Iron is periodically tapped and cast in moulds placed on a large
diameter turntable – the blast furnace process used for producing pig

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iron in a process which is used world over the only difference in this
case the small size of the blast furnaces in comparison with those seen
in integrated steel plants. The mini blast furnaces process is already in
use in several countries especially Brazil and China. There is viable in
spite of its small size because of several capitals and operating cost.

MOULDING

First the pattern is prepared for moulds according to the
requirements of the customers. High squeeze presence high density
molding machine short squeeze for the box size. The health of the
molding high quality dimension stability of the green sand moulds
will be achieved to give dimensional close control of the casting
molding machine.

CASTING

Casting is the final produce produced by KFIL, for producing
casting the hot molten metal is poured in to the mould through
runners of moulds and the hot metal occupies the shape of the mould
and it is allowed to solidity.

After solidification the caste item is reversed from the molding
box and necessary operations like grinding and other process are
carried out to set required dimensions according to the requirements.

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2.5 ORGANIZATIONAL STRUCTURE OF THE
COMPANY

INTRODUCTION:

The organizational structure of an enterprise would
depend upon its size, product manufactured and its functional
divisions. The organizational structure may be flexible. The
company may change its structure according to the needs and
suitability.

In KFIL the Board of Directors is having the major
position in the company. Managing Director (CMD) is held
responsible for formulating and implementing the Policies,
Procedures and rules with the assistance of Board of Directors
appointed by the Government and various financial institutions.
Different functional department heads like Production, Marketing,
Finance, and HRD&A etc also assists him.

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Each functional department heads are assisted by the
Assistant Managers. There is always coordination between all
functional departments through horizontal communication.

ORGANIZATONAL STRUCTURE

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2.6 DYNAMIC PEOPLE OF KFIL

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 Mr. Atul C. Kirloskar (Chairman)

 Mr. Sanjay C. Kirloskar

 Mr. R. V. Gumaste (Managing Director)

 BOARD OF DIRECTORS
Mr. A. R. Jamenis

Mr. C. V. Tikekar

Mr. S. N. Inamdar

Mr. G.A. Tada Mr. A.Moudewadi

 COMPANY SECRETARY
Mr. C. S. Panicker

 AUDITORS
M/s. P. G. Bhagwat

 BANKERS
State Bank of India
Bank of Maharashtra
Andhra Bank
UTI Bank Ltd
ICICI Bank Ltd
IDBI Bank Ltd

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ING Vysya Bank Ltd
HDFC Bank Ltd

CHAPTER-3
FUNCTIONAL DEPARTMENTS

 HUMAN RESOURCES
 FINANCE

 PRODUCTION

 PURCHAGE AND STORE

 MARKETING

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 RESOURCES

 RESEARCH AND DEVELOPMENT

3.1 HUMAN RESOURCE DEPARTMENT

In accordance with our mission of 'DESTINED TO SCALE
NEW HEIGHTS' we strongly believe that, a satisfied employee is
an unadvertised asset of a company. Hence, we at, Kirloskar
Ferrous Industries Ltd., are committed to bind the organization
with a common purpose, a common mission and common values
so as to continuously upgrade quality of work life of our
employees through:

 Creation of good working environment and shared
accountability for quality, safety and knowledge.

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 Adoption of improved work practices to foster the intellectual
capital.

 Develop people with high degree of entrepreneur ability and
leadership qualities.

 Develop emotional togetherness for strong ownership.

 Defining the role & responsibilities of employees to generate
empowerment and right leadership.

 Encouraging teamwork, participation & involvement to
effectively deal with negative residues.

 Development of personnel to create knowledge tank and a
learning base to defeat competition.

 Recognize performers through rewards and recognition.

HUMAN RESOURCES ETHICS:

 Developing passion for excellence is the core of our HR
philosophy.
 Developing potential HR in order to achieve corporate goals
and objectives.

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 Focus on grass root level for transformation into potential
leaders.

 Educate HR to develop extra - ordinary reasoning power and
move towards enrichment of life.

 Belief that our success depends on the motivated workforce
who bring out their best to achieve job requirements.

 As a learning organization the company adopts a team learning
process to create a strong knowledge base.

 We believe in the process of empowerment for success.

 Building self - driven and committed employees with
competencies necessary for high level of sustained
performance, retention and motivation of key employees.

 Maintaining the dignity of employee as a human being.

CAREER WITH KIRLOSKAR:

 Provides suitable and most productive assignments, which
brings psychological satisfaction.
 A congenial working environment comparable to the best in
the industry; an enviable professional growth.

 Provides maximum opportunities for personality development.

 Competitive compensation, benefits and remuneration based
on results is our policy today and focus in the future.

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OBJECTIVES OF THE HUMAN RESOURCES DEVELOPMENT

 Human resource department is to be with the employee from
his training to till his separation.
 Human resource department constantly care for each employee
right from his induction to his separation.
 Projecting manpower to recruit only qualified people as per the
recruitment specification.
 Development the available manpower to the maximum
possible extent through training.

HUMAN RESOURCE POLICY OF KFIL:

 Company recruit only qualified people as per the recruitment
specified in the manpower plan.
 The availability manpower shall be developed to the maximum
possible extent through training.
 The training shall be imparted on the basis of job recruitment of
each employee.
 The training to an employee shall be of two types.

ON THE JOB TRAINING by concerned supervisor and Section
head and department head.

OFF THE JOB TRAINING by the HRD department

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AUTHORITIES & RESPONSIBILITIES OF HRM:

 Manpower planning, recruitment and selection placement.
 Training and development.
 Performance appraisal, wage and salary administration.
 Security, transport fire and safety.
 Industrial relations dealing with government.
 General administration including public and guest relations.
 Estate management covering horticulture, guesthouse etc.
 Administration of welfare activities covering canteen, medical,
etc.

Human resource department coordinates all other
departments and helps them to work effectively. This department
performance all those functions which crates a sense of
belongingness among all the workers. Apart from this it also
maintains a cordial relationship between other industries

THE VARIOUS FUNCTIONS PERFORMED THIS DEPARTMENT
ARE:

 Recruitment
 Selection
 Interview
 Placement
 Wage and salary administration
 Training and development

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 Performance appraisal
 Promotion and transfers
And all those functions which helps to motivate the
employees and which leads to increase their morale.
SOURCES TO RECRUIT THE CANDIDATES:

 E –recruitment
 Advertisement in news paper
 Walk in interview
 Campus interview
 Data bank

Promotion is totally based on merit of the employees.
Company believes in promoting those employees who really
contributes towards the growth of the organization.

Company evaluates the performance of the employees
by using 360 degree performance appraisal method. In this
method company considers the opinion of the 3 major evaluators
they are as fallowing;
 Self appraisal
 Superior
 Suppliers and customer

Training plays major role in structure of the individual
personality. Company preference on the job training it includes:

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 Job rotation
 Coaching
 Class room training

Other than the usual work process it also performs the
other functions like maintaining the industrial relations among
other industries, motivating the employees by conducting and by
implementing continuous training program etc.,

3.2 FINANCE DEPARTMENT
Finance department deals with various functional
activities of the organization. The books of record of KFIL is
maintained by fully own built software system. The general
manager of this department is Mr.Srinivasan.

FUNCTIONS OF FINANCE DEPARTMENT:

1. Funding activity:

 Banks provide both long-term & short-term funds.
 Long-terms funds like debentures term loans, etc. are used for
project financing.
 Short-term Loans are taken to meet the working capital
requirement.
 Commercial banks help in providing short term funds.
 Individual banks will not finance the whole requirement but
they will share with other banks.
 The finance department will be having the continuous
Communication with the head office, so that the corporate office

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can transfer the funds to its unit. This operation is called as ‘Fund
transfer booking’.

2. Treasury function:

 They will maintain cash or bank balance book for any
payments.
 They will use only cheques for making transactions.

3. Book keeping:

A company should maintain books of accounts. There is
an own built computerized system including the accounts of sale,
purchase, cash/bank, stock, tax, fixed assets, etc.

The department has to disclose the information by
closing the books monthly. The books disclose the information to
the share holders of the company.

4. Audit: There are two kinds of audit:

 Internal audit – calls some of the outsiders or company
people them self’s conducts audit & it is disclosed to the
department only.

 Statutory audit – yearly report is addressed to the share
holders.

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Shareholding Pattern of the Company

Particular No. Of Shares Percent Shares(%)

Promoters and Promoters Group 80,941,870 58.95
Financial Institutions 3,565,000 2.60
Nationalised Banks 500 0.00
Non Nationalised Banks NIL NIL
Insurance Companies 4,000 0.00
Non Resident Indians 1,465,032 1.07
Mutual Funds 6,750,405 4.92
Foreign Institutional Investors 48,100 0.03
Domestic Companies 5,641,823 4.11

Trust 200 0.00
General Public 38,891,151 28.32

Total 137,308,081 100.00

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3.3 PURCHASE & STORE DEPARTMENT

To ensure availability of raw material with management
quality and quantity at right time with right price. To consider
suppliers as partners in our business towards TQM goals. It has
keep FIFO method of storing materials. On the basis of item code
delivery order is to be considered. On the basis of store entry
report, material has to be issued. Department member is checking
the materials. Company using Oracle System for materials flow,
process flow.

MISSION OF PURCHASE DEPARTMENT:

 That it is “To ensure the availability of the material with quality
and right quantity at right time right price”.

 The factors considered by the purchase department are price,
quality, and supplier background.

 The main objective of purchase department is to reduce the cost
of maintenance. At present the total purchase turnover is 400
per annum. Three grade of material A, B, C.

1. Directly used material – iron, ore, coke, etc.
2. Supporting system.

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3. Other raw material

MATERIALS SUPPLIERS

1.Grade sand Mangalore minerals

2.Iron ore -V.S. Laad & sons
-National minerals development
-Rajalaxmi minerals
- Guru Rajendra minerals

3.Low grade iron ore lumps -Rajapur minerals
Bellary mining corporation

4.Low grade sponge iron -Hospet Ispat Ltd,

5.Merallurgical coke -Adhi global pvt Ltd,
-IMR metallurgical

6.Lime Stone -Sharada cements
-Vaadhiraj minerals

7.Dolomite -Vaadhiraj minerals

8.Scrap bundle -Mysore enterprises

MATERIALS WITH SUPPLIERS:

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PROCUREMENT PLAN / INDENT CREATION – PROCESS FLOW

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3.4 PRODUCTION DEPARTMENT
2


PRODUCTION:

As history has it, the Kirloskar dream started taking shape
on 32 acres of barren land strewn with cacti and infested with
cobras. Driven by the faith in human ability, Laxmanrao Kirloskar
banded together 25 workers and their families and went to
transforming the barren expanse into his dream village. Since then
a century had passed and there has been no looking back. Those
32 acres has expanded into 350,000 m. sq of developed land with
state of art facilities.

PRODUCTION FUNCTION:

Equipment processes personnel are qualified to perform
the required operation’s respective department reports qualified
records objectives evidence of conformance to specified
requirements.

PRODUCT IDENTIFICATION TRACEABILITY:

1. Purpose: To provide guidelines for establishment procedure
fire identifying the product by suitable mean’s respect during
stages of production to delivery.

2. Quality system: To provide guidelines to establish.
Document & maintaining a quality a means to ensure that

2


product conformance to requirements. To outline structure of
documentation in quality systems. Trade line document, the
quality planning is done to meet the requirements of product.

3. Method: Incoming raw materials shall be identified by
location marked for supplier wise storage other materials are
identified by any of the following means tag location for
storage point marks pencils marks name plates boards
sticker.

 Quality assurance manual (QAM): The top ties document
prepared primarily conveying the organization commitment
to quality & maximizing customer satisfaction

 Common procedure manual (CPM): This is second ties
document issues to all department heads for common
procedure.

 Divisional procedure manual. (DPM): This is also second
ties document prepared by divisional heads dealing how a
job is done with responsibility specified department
procedure of HRM & TRG are prepared by respective
department heads.

2


4. Work instruction: This is third ties document primary to
operate with specify work details there are generally issued
by document or sectional heads & when required they
translated in vernacular language (Kannada) Forms/ formats

Standards check seats supporting documents etc these are

primarily designed by departments taking into consideration

the procedures/ work instruction details.

MANUFACTURING PROCESS:

1. Charging the blast furnace:

After processing, the ore is
blended with other ore and
goes to the blast furnace. A
blast furnace is a tower-
shaped structure, made of
steel, and lined with refractory
or heat – resistant bricks. The
mixture of raw material, or
charge, enters at the top of the
blast furnace. At the bottom of
the furnace, every hot air is
blown, or blasted, in through nozzles called tuye’res. The coke

2


burns in the presence of the hot air. The oxygen in the air reacts
with the carbon in the coke to from carbon monoxide.

C + O2 -----> 2CO

(Coke) (Hot Air) (Carbon monoxide)

2. Separating the iron from the slag:

The melted iron sinks to the bottom of the furnace. The
limestone combines with the rock and other impurities in the ore
to form a slag which is lighter than the iron and floats on top. As
the volume of the charge is reduced, more is continually added at
the top of the furnace. The iron and slag are drawn off separately
from the furnace. The melted iron might go to a further alloying
process, or might be cast into ingots called pigs. The slag is carried
away for disposal.

3. Treating the gases:

The hot gases produced in the chemical reaction are
drawn off at the top and routed to a gas cleaning plant where they
are cleaned, or scrubbed, and sent back into the furnace; the
remaining carbon monoxide, in particular, is useful to the
chemical reactions going on with in the furnace. A blast furnace
normally runs day night for several years. Eventually the brick

2


lining to crumble and the furnace is then shut down for
maintenance.

Pig Iron

Pig Iron: Grades

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The specifications of the various grades of Pig Iron produced at
KFIL are as follows:

PIG IRON Carbon (%) Silicon (%) Manganese Sulphur (%) Phosphorous
GRADES (%) (%)

Foundry 3.80–4.20 2.00–2.50 0.50–0.90 0.06Max 0.09Max
Grade 3.80–4.20 1.80–1.99 0.50–0.90 0.06Max 0.09Max
3.80–4.20 1.51–1.79 0.50–0.90 0.06Max 0.09Max

Basic Grade 3.80–4.20 <1.00 0.40–0.80 0.08Max 0.09Max
3.80–4.20 1.00–1.25 0.40–0.80 0.08Max 0.09Max
3.80–4.20 1.26–1.50 0.40–0.80 0.80Max 0.09Max

S.G. Grade 3.80–4.20 1.50–2.10 0.30Max 0.03Max 0.08Max

FOUNDRY:
Grade Specifications of the various grades of Foundry produced at KFIL are
as follows

India British Japanese German USA ISO

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Standard IS Standard Standard Standard Standard Standard
210-78 BS: 1452-98 JIS: G-5501-89 DIN: 1691-85 ASTM 48-83 ISO: 185-88

FG200 180 FC 200 GG – 20 30A 200

FG220 220 FC 250 GG – 25 35A 250

FG260 260 GG – 30 40A 300

FG300 300 FC 300 GG – 30 45A 300

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3.5 MARKETING DEPARTMENT
VISION
‘To be world class product leader through the state of the art
manufacturing technologies and processes’

MISSION
“A family committed to growth and prosperity of the
organization through leadership attributes and quality orientation
of people and processes that continuously satisfy the customers
with their ever changing needs”

MARKETING POLICY
“In the direction of achieving the company’s mission, the
marketing team- PIP endeavors for maximization of sales and
realization for the company’s product while meeting the
customer’s requirement to their all round satisfaction”.

STRATEGIES
 Maintaining quality leadership
 On – Time delivery
 Strong dealership network
 Customer orientation
 Customer driven

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 Performance tracking of competitors

MARKETING DEPARTMENT STRUCTURE

MANAGING
DIRECTOR

VICE
PRECIDENT

DIVISIONAL GENERAL
MANAGER

MANAGER

DEALERS DISTRIBUTORS

CUSTOMERS CUSTOMERS

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CUSTOMERS FOR PIG IRON ARE AS FOLLOWS:

NAME OF THE CUSTOMERS LOCATION

1.Electro steel casting limited Chennai

2.Breaks India Chennai

3.Laxmi Mission works Coimbatore

4.Texmo pumps Coimbatore

5.Bangaore metallurgical Bangalore

6.Ashok in works Belgaum

7.Gadge patil industries Kolhapur

8.Kapilanch datu udyog Nagpur

9.Prashant casting Rajkot

10.Punjab tractors limited Punjab

11.Shriram piston rings Gaziabad

PRICING OF KIRLOSKAR:

The name kirloskar itself is the mark of the customer KFIL
has I got the opinion of transporting pig iron to the buyer sites to
the buyer.
The service like transporting is rendered to customer by
KFIL with very nominal charges.

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In KFIL we come across different price terminologies:
 List Price
 Discount
 Allowance
 Payment Periods
 Credit Terms.

LIST PRICES: nothing but the selling price. It is also called basic
salary.

Basic price = Production Cost + Profit.
Production cost includes both variable cost &fixed cost.
If the transport is under taken by KFIL then boarded price is
calculated according to sites mentioned in receipts.
Record Price = Basic Price + Freight +CED (Central Excise Duty)
A discount of Rs 100/- price is given to the regular &bulk buyers.

Price of KFIL pig iron ore comparatively more when
compared to competitors. Even with this more also KFIL has
succeed in reaching top market share holding position in the pig
iron market of foundry people prayer KFIL pig iron because of the
following reasons.

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 High Quality
 Fixed Chemical Composition.
 Test Certificate Are Issued With Every Load
 Almost 0%Impurities & Slag Mix Up.

If customer demands for 2.25% silicon then KFIL will
supply exactly with this composition. Where others supply with
range between i-c 22.25 silicon.
Opening furnace KFIL iron weights 7kg’s KFIL brand
name helps in attracting customers. From above points it is clear
that KFIL is not using any mark penetrate pricing strategy to
penetrate the market instead it is using mark skimming pricing
straightly.

PROMOTION:
KFIL has appointed numbers of dealers throughout
India for its marketing purpose each dealer will get rs100/- PMT
as commission for the pig iron he sells credit notes are given to
these dealers for his commission.
Pig iron is also give credit sales as one of the
promotion tools to attract customer credit time depends on areas
(less credit period is for north zone) & order they give.

DISTRIBUTION:
KFIL has got distribution network spread all over
India inform of dealer ships & also through company’s employee
KFIL has divided its market into 7 zones.

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Zone A Karnataka Belguam, shivamoga Bangalore.
Zone B Andra Pradesh Hydrabad,vijayvada

Zone C Maharastra Pune,Mumbai nagpur solapur

Zone D Gujarat Ahemadabad rajkot,surat

Zone E Rajastan Jaipur

Zone F Delhi Delhi,zadhinoor,agra

Zone G Tamil nadu Chennai, coimbatore ,madurai.

3.6 RESEARCH & DEVELOPMENT

In this era of constant change, where what is old is
considered dead we have been able to match steps with the latest
technological changes. Technological innovation is the core of our
original product design function. We believe in pro-active product
development, to precisely meet the needs of customers and
operating conditions. Expanding to meet the ever-changing needs
of the customers comes naturally to us.

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CHAPTER-04
POLICIES & EVENTS OF THE COMPANY

2


POLICIES

SAFETY POLICY:

In accordance with our mission of "DESTINED TO SCALE NEW
HEIGHTS",

 To provide safe machinery, equipment, methods, operations,
tools and environment for prevention of accident.
 To achieve an integrated safety & health system in all areas of
activities.

 To enforce relevant statutory provisions of safety and health for
preventing accident.

 We expect our employees:

1. To observe safety rules

2. To use safety appliances and devices

3. To report to managers any unsafe condition of machines

4. To work as per lay outs

5. To care for personal hygiene

6. To practice safety conscience, culture

7. To be always alert in accident prevention measures

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HEALTHY POLICY:

In accordance with our mission of "Destined to scale new heights",
we firmly believe that health & hygiene of employees is extremely
important to improve the quality of life. To achieve this, we shall
strive for improved health standards, better and safe working
practices and eco-friendly environmental workstations.

We are therefore committed to:

Provide wholesome healthy environment for our employees to
prevent occupational health hazards
Achieve health integrated systems in all the areas of operations

Enforce relevant statutory controls for prevention of diseases
and epidemics to maintain sound Health.

We expect our employees to co-operate by:

 Keeping good health and hygiene
 Practicing healthy habits and learn to care for personal
hygiene

 Having medical surveillance through periodic health check-
ups

 Maintaining good health and sound mind to promote a
healthy working environment.

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 All employees shall Endeavour to achieve this ultimate goal of
"Health for All".

COMMUNITY SERVICES:

Social welfare:

Company is located only 16 kms away from the major
industrial town Hospet and 16 kms away from Koppal in
Karnataka State. Company is located on NH-13 & NH-63
connected to both these towns. The employees are picked up &
dropped by chartered busses and vans. In both the towns, there
are very good schools and colleges inclusive of Professional
colleges to enable the children of our employees to pursue higher
education.

As a philosophy, we have an objective concern for the
welfare of the society to restrain individual or corporate behavior
from ultimately destructive activities, no matter how immediately
profitable and to lead in the direction of positive contributions to
the human settlement.

We as an economic unit within the society, irrespective of
profit / loss, consider our duty to repay the debt towards the
society.

Our social contribution goals:

 Provision of quality health care / drinking water.

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 Provision of employment opportunities

 Environment protection and maximum efforts to prevent
environmental hazards

 Improving community life of people & Building
infrastructure

 Affordable quality education

 Safety of employees, customers, minorities, women and
community

 Changing social needs, values and demands

 Contribution to national exchequer. Foundation.

ENVIRONMENT MANAGEMENT:

KFIL has been awarded ISO - 14001 Certification by IRQS on
27th of August 2002 for its commendable achievements and
improvements in Environmental Management Systems.

Our commitment to protect and upgrade the environment is
embodied in our Environmental Policy wherein cost effective
methods for waste management, prevention of pollution and
resource conservation are main elements.

Environment Policy:

2


 In accordance with our mission of "DESTINED TO SCALE NEW
HEIGHTS",
 We, at Kirloskar Ferrous Industries Limited, manufacturers of Pig
Iron commit to protect and upgrade our Environment through:

 Systematic and Cost effective methods for waste management.

 Control of all pollutants within prevailing acceptable limits
through best available technology resources & periodic reviews
enabling continuous improvement.

 Optimal utilization and conservation of resources through
effective recycling and re-use practices.

 Compliance of all applicable Environmental Laws and
Regulations.

 Environmental awareness programmes to all Employees through
Training.

 Communication of this Policy to interested parties for their
participation & involvement into the preservation of our
environmental norms.

 Plantation of thick and tall growing trees, providing sprinkling
systems, providing a compound wall across the Northern and
North-Eastern Boundary are all done to restrict fugitive emissions
entering into neighboring village and to protect the agricultural
crops there.

 A study of the same has been entrusted to University of
Agricultural Sciences, Dharwad for assessment of soil health and
crop yield.

 Regular monitoring of various environmental parameters.

2


 Conversion of around 200 meters of barren land into a green belt.

 Transferring the wastes generated in the process to user
industries.

 Installation of wastewater treatment plant at an annual operating
cost of 1.5 Crore Rupees.

MAJOR EVENTS
YEAR EVENTS
1994 Mini Blast Furnace I commenced commercial production

1994 Turbo Generator I taken on lease having a capacity for the
genaration of 3.5 MW of power using B.F.Gas.

1995 Setting up a facility having a capacity to draw water from the
Tungabhadra dam

1995 MBF II taken was lease, was installed and commissioned in a
record time of 9 months

1995 ISO-9000 certification received

1997 Foundry Capacity was increased from 425,000 moulds per
annum to 475,500 moulds per annum

1998 Started supply of TG power to foundry Company allotted
preference shares of Rs. 45 Crores to increase the shares
capital.

1999 Company called an extraordinary general meeting of the
shareholders on October 29, to consider erosion of more than
Company’s peak net worth during immediately preceding
four financial years pursuant to section 23 of Sick industrial
companies special provision act 1985.

2


2000 Company entered into financial restructuring with IDBI and
with other Institutions namely IFCI, IIBI, GIC, OIC, LIC &
NIA.

2001 Quality Standard 9000 certification received. Company
allotted preference shares of Rs. 27.22 Crores to increase the
shares capital. Company allotted Equity shares of Rs. 13.72
Crores to increase the equity shares capital.

2002 ISO-14001 certification received company entered into
financial restructuring with IDBI & with other institutions.
Company allotted preference shares of Rs. 32.46 Crores to
increase the share capital. company entered into profit.

2003 Company entered into settlement with Financial Institutions
For the repayment of the loans. Company entered into profit
for the second consecutive year.

2004 Company repaid entirely the loans taken from Financial
Institutions bearing high rate of interest. Thereafter the
company took reduced loans at lower rate of interest.
Company entered into profit for the third consecutive year.

2005 TS 16949 certification received 83 Commissioning of an
induction furnace of 12 tonne capacity. Company paid
Dividend of Rs 11.33 Crores on preference shares. The
shareholders passed special resolution for reducing the face
value of equity shares Rs.10 each to Rs.5 each fully paid up
for the winding up accumulated losses to the extent of
Rs.36.11 Crores. Company entered into profit for the Fourth
consecutive year.

2006 Company paid dividend including arrears of Dividend
amounted to Rs. 22 78 Crores on preference shares. Company
purchased the MBF II and TG I ,II which were earlier taken
on lease

2


CHAPTER-05
SWOT ANALYSIS
FINDINGS
SUGGESTIONS
CONCLUSION

2


SWOT ANALYSIS OF THE COMPANY
“Business for us is when you have the time to show that you care”

STRENGTHS:

 Established market/brand name.
 Growth in automobile market.
 Nearer to iron source.
 Delivery to customer as per schedule
 Use of byproduct CO gas for generation of electricity helps
to reduce cost of production.
 Easy availability of skilled and semiskilled human resources
due to presence of villages and ITI, Diploma and
engineering Institutions nearby.

2


 Quality is established presence in all market eastern zones,
reasonable transportation facilities available for all area 25%
of production is tied up with institutional customer.
 China’s policies for issuing licenses for coke export
 Impact on iron ore prices
 International demand for steel
 Impact on international steel prices and Domestic steel prices
 Government policies

WEAKNESS:
 The cost involved in completion of product is high.
 Inconsistency in appearance
 Already at peak utilization of current capacity
 Weakness core expertise on prevention maintenance
 Total dependence on imported coke
 High coke consumption due to higher fines and handing
costs due to multiple handling
 Higher basic coke consumption due tousle of metallic blast
preheated in place of stove.
 As customers expectations are increased day by day it has
become difficult to satisfy them completely.

OPPORTUNITIES:
 As KFIL good market edge KFIL can market 20000 per month
of foundry grade pig iron every month.
 Can capitalize on up swings in market demand because of all
India presence.

2


 Focus on casting market development in Europe and Japan
for OE customers.
 Many multinational companies are venturing their base in
India.
 Growth in Indian foundry capacity.

THREATS:
 Government regulations.
 Imposition of sales tax
 Possibility of coke prices going up
 Price of goods are comparatively high
 Adopting auto motive machines may cause fear among the
existing employees of job loss which may affect morale and
productivity of employees.
 New entrants in market may dilute the market share of the
company.

FINDINGS

After making a study of the organization the following are
some of the findings:

 Lots of waste coming out from process.
 Free and good Medical facilities
 Canteen facilities are low level of satisfaction.
 The authority will flow from top level to bottom level
management.

2


 The trend in the industry shows that the assets of the
company are efficiently utilized to generate sales.
 Suggestion scheme, education level, environment policy and
safety measures work disciplines have scored high level on
the job satisfaction.
 Life span maintenance is not maintained so it decreasing
regular efficiency.

SUGGESTIONS
 Production capacity has to increase by adopting high
technical machines according to demand
 Maintaining proper life span replacement may increase the
efficiency of production.

2


 The Organization should take suggestions from workers and
that have to be implemented seriously
 By adopting more and more technological methods in
production it can enter easily to global market
 The organization should adopt various cost cutting measures
by
1. Reduction in wastage
2. Reduction in maintenance.

CONCLUSION
The 5 weeks in plant training in KFIL has given a detailed
knowledge of the management of an organization and a clear
picture of work flow of the complex organization. KFIL is a pig
iron plant which is used as a basic raw material for the production
of the steel. This study has given a information of how really a big
organization works by facing so many hurdles. As it is a pig iron
plant it totally covered by the risks & company is successfully
overcoming the problems.

The culture in KFIL is very cordial and the atmosphere of the
workforce is also very good which contributed to the study a lot.

BIBILIOGRAPHY
 Company annual reports
 KFIL Journals

2


 Office records
 Broachers
 WEBSITE
www.Kirloskar.com

www.Google.com

2

Kirloskar PROJECT FILE 2012

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