profile of bhushan steels
TRANSCRIPT
PROFILE OF THE ORGANISATION
Bhushan steel is the combination of two companies BHUSHAN STEEL LTD and BHUSHAN ENERGY LTD
BHUSHAN STEEL LTD.
Bhushan Steel Ltd formerly known as Bhushan Steel & Strips Ltd. is a globally renowned one of the
leading prominent player in Steel Industry. Backed by more than two decades, of experience in Steel
making, Bhushan Steel is now India’s 3rd largest Secondary Steel Producer company with an existing
steel production capacity of 2 million tones per annum’s (approx.). Given a vibrant Steel industry
dynamics in India, we are on a course to become a fully Integrated Steel & Power Company with market
leading offerings in value added Steel in Automotive and White Good Segment with the quality been
approved by ISO 9002 and QS 9000.
It was the vision of the founder; Brij Bhushan Singal, that the first stake was driven into the soil of
Sahibabad (Uttar Pradesh) in 1987. His vision helped BSL overcome several periods of adversity and
strive to improve against all odds.
The company is “centralized source” for wide variety of products such as Annealed, Galvanized, High
Tensile Steel Strapping, Corrugated Sheets, Galume Sheets and Coils, Hardened & Tempered Steel
Strips , Billets, Sponge Iron and Precision Tubes. manufactured in its various plants. BSL has the
distinction of being the only producer In India of the widest width CR Sheet, besides being a preferred
supplier of automotive grade steel sheets for inner and outer panels to all leading 4-wheeler and 2-
wheeler manufacturers in the country.
The company has three manufacturing units in the state of
Uttar Pradesh (Sahibabad Unit)
Maharashtra (Khopoli unit)
Orissa (Meramandali unit)
Sahibabad Plant
The Sahibabad plant was commissioned in 1987, giving a tremendous volume thrust to the production
capacity of Bhushan Steel Ltd. with a production of 4, 75,000 MT per annum. The plant compromises
the products such as Cold Rolled Coil, Cold Rolled Sheet, Corrugated Sheet, Galvanized Coil And Sheet.
Khopoli Plant
The Khopoli plant, commissioned in 2004 has been playing a remarkable role not only in the
growth of exports, but in the production of a much wider variety of value added steel like Cold
Rolled Coil And Sheet, Corrugated Sheet, Galvanized Coil And Sheet, Hardened And Tempered
Coil, Precision Tubes, High Tensile Steel Strapping, Color Coated Sheet, Galume Coil &
Galume Sheet. The production capacity of the Khopoli plant is 4,25,000 MT per annum.
Meramandali Plant
BSL is currently implementing a backward integration project to set up an integrated steel plant
of 2.3 MTPA capacity at Meramandali, district Dhenkanal, Orissa to manufacture Hot Rolled
(HR) coils (which is the key raw material for its existing operations) / billets, so as to guard
against future increase in prices / possible shortages of HR coils for its cold rolling facilities. The
steel plant is being implemented through Direct Reduced Iron (DRI) – Blast Furnace (BF) –
Electric Arc Furnace (EAF). The steel plant will have the capacity to manufacture 2.0 MTPA of
HR coils and 0.3 MTPA of billets and power generation capacity of 110 MW. The plant has
introduced the new products – Billets And Sponge Iron.
BHUSHAN ENERYGY LTD.
Bhushan Energy Limited (BEL) has been promoted by M/s Bhushan Steel Ltd., with the main focus on
power Business. The BEL is setting up 300 MW power plant with the estimated capital outlay of Rs. 1018
crores.
The location of site for the project is as follows:
The BEL Project site is located at Meramandali, Dhenkanal district of Orissa, about 18 km from Angul,
about 42 km from Dhenkanal, about 100 km North West of Cuttack and 125 km from Bhubaneswar. The
South Eastern Railway's line connecting Angul and Cuttack railway station and the National Highway
NH-42 are passing on the north of the site. The plant is proposed to be connected from Meramandali
railway station, which is at a distance of 4 km from the site. The river Brahmani flows from north-west to
south-east on the northern side of the site at a distance of about 6 km. Paradip port is located at
distances of 180 km.
Process
The process of generation of power from coal (or coal equivalent viz. coal middling and char) (water
steam cycle) essentially entails two main stages. In the first stage, the energy stored in coal is converted
into heat energy in the coal-fired boilers. In the second stage, the high-pressure steam, which is
generated in the boilers, is passed through turbines (conversion of heat energy into mechanical energy)
which in turn is coupled to generators (conversion of mechanical energy into electrical energy), thereby
generating electricity.
The water steam cycle essentially contains coal fired steam generator, steam turbine with condenser,
feed-water tank, low-pressure (LP) heaters and high-pressure (HP) heaters and the connecting pipelines.
The superheated steam produced in the steam generator is supplied to the steam turbine, which drives
three-phase AC generator. After leaving the HP turbine, steam is reheated in the steam generator and
fed to the Intermediate Pressure (IP) turbine.
In the LP turbine steam coming directly from the IP turbine expands to condenser pressure and is
condensed in the condenser. Closed cycle water system is used for cooling of the condenser. The
condensate collected in the condenser hot well is discharged by the condensate pumps and supplied via
the LP condensate heaters into the feed-water tank. The feed-water pumps discharge feed water from
the feed-water tank via the HP heaters to the steam generator.
The power station has been designed with two power generating units of 1000 MW each, with the
auxiliaries and common utility services like plant water system, coal handling system, ash handling plant,
and switchyard for power evacuation, plant electrical system and workshop. The main sections of the
power generating unit include boiler along with milling system and electrostatic precipitator, coal
handling system, turbine generator unit, boiler feed pump, condensate extraction pump, circulating and
auxiliary cooling water pumps and the generator transformer with bus duct. The main sections of the
utility system are the coal handling system, ash handling system, switchyard and the plant water system.
Company’s Vision
About Culture: -“To make it a place where all the people can thrive living, learning and
working in a clean, safe and healthy environment.”
About Values:-To corporate values as “the rules or guidelines by which a corporation
exhorts its members to behave consistently with its order, security and growth.”
About People: - “See the good in people and try to develop those qualities” i.e.
preparation and grooming of the next generation of the young thinkers.
About Customers: - “Sell good merchandise at reasonable price; treat our customer like
we would treat our friends and the business will take care of itself. Bhushan Steel’s
endeavor is to attain the highest level of Customer Satisfaction.”
About Products: - “We should always be the pioneers with our products – out front
leading the market.”
BOARD OF DIRECTORS
Name Designation
Brij Bhushan Singal Chairman / Chair Person
Nittin Johari Whole Time Director
P K Aggarwal Whole Time Director
Mohan Lal Director
V K Mehrotra Director
Neeraj Singal Vice Chairman & Mng.Director
Rahul Sen Gupta Whole Time Director
Sunita Sharma Nominee Director
B B Tandon Director
M V Suryanarayana Director
ACHIEVEMENTS
Most brilliant milestone in BSL’s journey of excellence is setting up of Steel and Power Plant in Orissa.
On completion, the Plant will be one of the largest integrated Hot Rolled Steel and Power complexes of
the nation.
BSL has emerged as the country’s largest and the only CR Steel Plant with an
independent line for manufacturing Cold Rolled Coils and Sheets up to a width of
1700mm, as well as Galvanized Steel Coils and Sheets up to width of 1350mm.
Bhushan Steel has transformed to 3rd largest producer of Cold Rolled Steel with an
installed capacity of one million tons and sales of more than USD 1 Billion.
Focused on niche high value added segment of automobile and white goods & is today a
leader in these segments. Recently started the country’s largest Colour Coated line and
first to manufacture the Galume (zinc and aluminium coated sheets / coils) in Khopoli
Plant.
Invested in latest technology/equipment without compromising over cost.
BSL has a good debt-servicing track record.
First to set up a high Tech Plant in 1996 to cater to auto mobile and white good sector, in
technical tie up with Sumitomo Metals, Japan.
Profit making and dividend paying company since inception.
SALES GROWTH
PROBLEM OF THE ORGANISATION
There is a proper criteria to tackle the problem and then to solve the corporate issues.
Problems of of Bhushan Steel
Although the company has modernised its steelmaking considerably, however, nearly 6% of its
crude steel is still produced using the outdated open-hearth process.
Labour productivity in India is still very low. According to an estimate crude steel output at the
biggest Indian steelmaker is roughly 144 tonnes per worker per year, whereas in Western
Europe the figure is around 600 tonnes.
Bhushan Steel has to do a lot of catching in the production of stainless steel, which is primarily
required by the plant and equipment, pharmaceutical and chemical industries.
Bhushan Steel production in India is also hampered by power shortages.
Insufficient freight capacity and transport infrastructure impediments too hamper the growth
of Bhushan Steel
Unremunerative Prices
Endemic Deficiencies
Low Labour Productivity
High Cost of Basic Inputs and Services
COMPETETION INFOREMATION
Bhushan Power and Steel has completed a 3.5-million-ton backward
integration plant in Jashugara district of Orissa. The unit is being set up at an
investment of Rs 1000 crore.
The first phase of this project is likely to be over before the closing of the
current financial year. With the completion of this stage, work for 1.2 million
tons of capacity will be completed. Ultimately, the plant will almost double
the present capacity of the company. This will help the company to control
the price of their products due to the controlled input prices.
According to a senior official of the company, there are plans to set up new
plants in Ludhiana, Manesar and Hosur. These plants will be both tube plants
as well as service centres for the auto industry. Land has already been
acquired land for the projects, which will be set up at an investment of Rs
200 crore.
With a production capacity of 1.2 lakh tons per annum, the company
captures nearly 12 to 15 percent of the market. The company faces
competition from some strong contenders including Jindal, Tata, TISCO, Tube
Products of India, Atlas Tubes and Surya Roshini. The company generally
exports its GI pipes and Precision tubes. Countries like Nigeria, Nepal, Sri
Lanka and Malaysia are the major markets of export for the company.
Bhushan's product mix, comprising galvanized iron pipes (GI pipes), precision
tubes both ERW and CEW as well as black pipes, cater mostly to the public
health department of the states, automotive industry, furniture making and
even infrastructure. Bhushan serves the public health department of UP,
Punjab, Haryana, Tamil Nadu, Himachal Pradesh and Jammu and Kashmir.
BSNL is also included in the client list of the company as the company
produces GI pipes which are used for laying cables. In the automotive
sectors, Bhushan Power and Steel supplies to major players like Bajaj Auto,
Honda- motorcycle and scooter division, Suzuki, Maruti, Ashok Leyland and
Tata Motors.
The company generally sources its raw materials from SAIL and ESSAR,
especially for its plants in north India. The Kolkata plant, due to the presence
of port uses raw materials which are usually imported from Australia. The
technology for the manufacturing of their products is not available in India.
Thus the company has to source its technology from the US, Germany,
Japan, Italy and China.
The major constraint of the company is the existence of the unorganised
players, which are many in number. These players provide huge competition
to the organised players of the market. PWC according to a senior official of
the company is not actually a big threat. He said that the company has to
face pricing constraints even as it does not get proper price for its products
from the market. This is generally due to the vendors who buy the products
from them. This problem crops up mostly in the automotive sector where
there is a middleman between the principal buyer and the principal
producer, a senior official of the company said.
Product Bundle
The company manufactures GI Pipes at its Derabassi plant in Punjab, which
caters to domestic, agriculture and industrial sectors. There manufactured
size range from 10mm NB to 100 mm NB with strip thickness of 1.80 mm
and 5.40 mm
Precision tubes both ERW and CEW are widely used for Power and Industrial
boilers, Transformers, Super heaters, Automobiles and Bicycles, Railway
Electrification, Furniture and General Engineering Applications, among
others.
The ERW tubes are of outer diameter ranging from 12.70 mm to 114 mm
while CEW tubes are ranging from 9 mm to 110 mm. Precision Tubes and
black pipes are made at their Kolkata plant. Even the Chandigarh plant of the
company manufactures black pipes. Black pipe is used for transportation of
air, gas, fabrication of structure, automobiles, cycles and general furniture
industries. Varnished pipes are used for general engineering industries.
The basic competion that the company is facing with the SAIL
(STEEL AUTHORITY OF INDIA). Both the company are sharing this
common interest from the last 2 decades. Catching each others neck
is there main motive but apart from that they are making an
important contribution in building our nation’s strength.
S.W.O.T. ANALYSIS
S.W.O.T. Analysis is a technique for understanding strengths, weakness, opportunities and threats of an
organization.
The S.W.O.T. Analysis is a technique used for identifying an organization’s strength’s and weakness and
examining the opportunities and threats which the organization is facing.
STRENGTHS WEAKNESSES
1. availability of iron ore.
2. low labour wage rate.
3. abundance of manpower
4. mature production base
1. unremunerative prices
2. Endemic Deficiencies
3. High Cost of Basic Inputs and Services
4. low labour productivity
OPPORTUNITIES
1. Unexplored Rural Market
2. Other Sectors
3. Export Market Penetration
THREATS
1. china becoming net exporter
2. protectionism in the west
3. dumping by competitors
STRENGHTS
availability of iron ore
low labour wage rate
abundance of manpower
mature production base
WEAKNESS
Unremunerative Prices
Endemic Deficiencies
Low Labour Productivity
High Cost of Basic Inputs and Services
Opportunities
Unexplored Rural Market
Other Sectors
Export Market Penetration
THREATS
china becoming net exporter
protectionism in the west
dumping by competitors