An Organizational Study on

JSW Steel Limited

Under the guidance of
Ms. Suma
Department of Management

Submitted By:
Bharath Kumar A Jofin TM Murudeshwara HV
Pooja HS Sukriya Ali Vimal Raj NR
DECLARATION
CERTIFICATE
ACKNOWLEDGEMENT
 TABLE OF CONTENTS
CHAPTER 1 : INRODUCTION
INDUSTRIAL SCENARIO
 MANUFACTURING INDUSTRY
 MACRO SCENARIO
 MICRO SCENARIO
CHAPTER 2
 COMPANY PROFILE AND HISTORY
 VISION AND MISSION
 PRODUCT PROFILE
 COMPITATIORS PROFILE
 AWARDS AND RECOGNITION
CHAPTER 3
 ORAGINATIONAL STRUCTURE
 MANAGEMENT STRUCTURE
 ORGANISATIONAL HIERARCHY
CHAPTER 4
 CONCLUSION
 BIBLIOGRAPHY
 EXECUTIVE SUMMARY
 CHAPTER 1

INTRODUCTION

India is the world’s third-largest producer of crude steel (up from eighth in
2003) and is expected to become the second-largest producer by 2016. The
growth in the Indian steel sector has been driven by domestic availability of raw
materials such as iron ore and cost- effective labour. Consequently, the steel sector
has been a major contributor to India’s manufacturing output.

The Indian steel industry is very modern with state-of-the-art steel mills. It has
always strived for continuous modernisation and up-gradation of older plants and higher
energy efficiency levels

The steel sector in India contributes nearly two percent of the country’s gross domestic
product (GDP) and employs over 600,000 people. The per capital consumption of total
finished steel in the country has risen from 51 Kg in 2009-10 to about 59 Kg in 2014-15.
India's steel consumption for FY 2015-16 is estimated to increase by 7 per cent, higher than
2 per cent growth last year, due to improving economic activity, as per E&Y's 'Global
Steel 2015-16' report.

JSW Group is one of the fastest growing business conglomerates with a strong
presence in the core economic sector. This Sajjan Jindal led enterprise has grown
from a steel rolling mill in 1982 to a multi business conglomerate worth Rs.
14700 Crore (US $ 3.7billion).
As part of the US $ 10 billion O. P. Jindal Group, JSW Group has diversified
interests in Steel, Energy, Minerals and Mining, Aluminum, Infrastructure and
Logistic, Cement and Information Technology.

JSW Steel Limited is engaged primarily in manufacture of flat products viz. H R

Coils, CR Coils, Galvanized products, auto grade / white goods grade CRCA
Steel and Power. JSW Steel Limited has the largest galvanizing production
capacity in the country and is the largest exporter of galvanized products with
presence in over 74 countries across five continents.
On its road to growth and expansion, the Group is also conscious about its
responsibility towards environment and social development. Eco-efficiency is a
matter of principle.

Preventive measures for damage to the environment are taken into account at the
planning stage of production and growth. JSW Foundation, an integral part of the
Group, is the CSR wing, with a vision to create socio economic difference in the
fields of Education, Health and Sports, Community Relationship/Propagation as
well as Art, Culture and Heritage.

INDUSTRIAL SCENARIO

 MANUFACTURING INDUSTRY

Manufacturing industries appeared with the event of mechanical and financial

changes in the Western nations in the eighteenth nineteenth century. This was
generally known as mechanical unrest. It started in Britain and supplanted the
work serious material generation with motorization and utilization of powers.
Producing industry implies those endeavors which incorporate into the amassing
and get ready of things and appreciate either development of new things or in
regard extension. The assembling business speaks to a basic offer of the present
day division in made countries. The last things can either fill in as a finished
helpful accessible to be acquired to customers or as midway stock used as a piece
of the era methodology

Manufacturing businesses comprehensively confidential into designing ventures,

development enterprises, gadgets businesses, synthetic businesses, vitality
enterprises, material enterprises, nourishment and drink enterprises, metalworking
enterprises, plastic ventures, transport and media transmission enterprises.

Manufacturing industries are essential for an economy as they utilize a huge share
of the work make and deliver materials required by divisions of key significance,
for example, national foundation and barrier. On the other hand, not all
manufacturing businesses are gainful to the country as some of them produce
negative externalities with vast social expenses. The cost of giving such
businesses a chance to prosper may even better the advantages produced by them.
After introducing eco-friendly environment system, the industry adopted quite a
few measures to guarantee that manufacturing industry irresponsible to abide by
the eco-friendly system. Manufacturing industry in the world has major role in
defense sector of country. By assembling airplanes that assume crucial part in
nation‘s defense sector. Other ventures in assembling division fabricate items
which are basic in our day to day lives. As to the GDP, world assembling industry
adds to the worldwide economy and also the worldwide GDP.

MACRO SCENARIO

Among developing nations, the most serious procedures of development in

manufacturing industry happened in late decades in China, Mexico, Brazil, India
and in the "new industrialized" Asian nations, where a similar building sub-
enterprises were highlighted, however in the gathering of less created nations
inside the previously mentioned states the most noteworthy development rates
were seen in conventional businesses - food and refreshments and materials.
The progressing changes in the structure of the modern area of created economies
contrast by their preference from those which happen in creating nations. These
progressions likewise vary by speed and nature because of areas' size. The
execution of new advances and other logical and specialized advance
Accomplishments in the generation procedure, the increase in productivity and
quality markers of creation in various nations precisely reflected changes of
branch structure of assembling industry on the world. Numerous new ventures
were shaped (bio-industry, make of laser innovation, present day medication
what's more, microbiological medications, and so on.). Mechanical developments
brought forth microelectronics. Therewith some very much characterized
adjustment and even a slight decrease underway in "customary" businesses of
created nations were watched (creation of sustenance and drinks, materials,
essential metals, chemicals what's more, compound items). The most elevated
development rates were seen underway of methods for correspondence (radio, TV
and interchanges equipment‘s), PC and office hardware, electrical equipment‘s.

The world manufacturing section has polished a befuddled decade: considerable

framing economies moved into important level of collecting nations, a genuine
withdraw meddled with demand, and assembling business fell at an enlivened rate
in front line economies. As yet, assembling remains basically essential to both
creating & propelled world. In past, it continues giving a pathway from
subsistence cultivation to rising wages and desires for regular solaces. In the last
said, it remains a basic wellspring of progression and forcefulness, making
outsized duties regarding inventive work, charges, and effectiveness
advancement. Be that as it may, the assembling part has changed bringing both
open entryways and challenges and neither business pioneers nor approach
makers can rely on upon old responses in the new amassing condition.
All around, manufacturing industry keeps on growing. At present around 16 % of
worldwide GDP &14% of work. Anyway, the manufacturing area's comparative
volume in an economy fluctuates by its stage of improvement. We can see that
when economies industrialize, manufacturing business and yield both ascent very
vastly, however once producing offer of GDP peaks at 20-35% of GDP. The
reason is that as wages rise, customers have more money to spend on
organizations, and that zone's advancement enlivens, making it more basic than
assembling as a wellspring of improvement and work.
The portion is moreover creating in ways that make the ordinary view that
amassing and organizations are absolutely specific and basically uncommon
divisions outdated. Advantage inputs make up an extending measure of gathering
activity. In the United States, every dollar of amassing yield requires 19 pennies
of organizations. Moreover, in some amassing wanders, most of every one of
delegates' works in organization parts, for instance, R&D draftsmen and office
staff.
Manufacturing is additionally essential for making steady employments. The
International Labor Organization says nations with a high offer of workers in
industry have a tendency to have more individuals in wage-business, instead of in
casual, defenseless employments.
Manufacturer delivers huge amounts of products consistently, all of which effect
purchasers in a roundabout way or straightforwardly. Like any industry, the
assembling business has particular targets and comparing procedures that are
intended to enhance an organization's main concern. These identify with quality,
security, merchant choice, issue recognizable proof and determination, and
proficiency and expenses

MICRO SCENARIO

Manufacturing industry in India is a remarkable supporter in India's economy.

India is one of the main industrialized countries on the world. It is because of the
improvement of Indian businesses that India has turned into a creating country
from an immature country. The assembling division is viewed as the foundation
of any economy. Businesses can be characterized into two principle sorts on the
premise of their structure.

They are manufacturing industry, which incorporates substantial and light

enterprises, and little scale and cottage industry. The manufacturing industry
contributes hugely to the economy of India. Modern advancement prompts an
expansion in business openings. Subsequently, the per capita wage of the general
population increments. Additionally, inordinate reliance on farming division is
decreased by the business openings in the auxiliary and tertiary parts of the
economy.

CHAPTER 2

COMPANY PROFILE AND HISTORY

Jindal South West Steel or JSW Steel is the flagship company of the
JSW Group. Originally starting off from a single steel mill in 1982, JSW steel is
now a US$ 9 billion global conglomerate spread over six locations in India
and with a footprint that extends to the US, South America and Africa

JSW Steel is a testament to decades of experience and a dynamic culture that have
culminated in the company becoming the leading provider of specialised
steels in India. The company's strategy of always staying on the leading
edge of technical advancement has led to partnerships with global sector leaders
such as JFE Steel, Marubeni Itochu Steel, Praxair and Sever field Rowen Plc. This
technological edge has helped JSW's plants rank among one of the lowest-cost
steel producers in the world
The strong focus on innovation and research and development (R&D) has
led to JSW Steel being recognised worldwide as a purveyor of high-end, value-
added steel. Nearly 40 percent of its products today are high value steels and
nearly one-fifth is exported.

JSW Steel is third largest Indian Private Sector Steel Producer

2015Becomes largest steel maker in the country. 2014 Inaugurates India's

most modern cold rolling mill; wins the Prime Minister's Trophy for Excellence
in Performance 2013 Launches new retail format - JSW Explore; wins the
Platt’s Global Metals Award2012Forays into electrical steel and signs agreement
for CRNGO electrical sheets technology with JFE Steel Corporation,
Japan2011Inks joint venture (JV) with Marubeni- Itochu Steel Inc,
Tokyo2010Acquires controlling stake in Ispat Industries Ltd

JSW's history can be traced back to 1982, when Jindal Group acquired Piramal
Steel Ltd., which operated a mini steel mill at Tarapur in Maharashtra. The
Jindals, who had wide experience in the steel industry, renamed it as Jindal Iron
and Steel Co Ltd. (JISCO) now known as JSW Steel Limited (Tarapur & Vasind
Works)

In 1994, to achieve the vision of moving up the value chain and building a strong,
resilient company, JISCO promoted Jindal Vijayanagar Steel Ltd (JVSL) now
known as JSW Steel Limited (Upstream). Its plant is located at Toranagallu in the
Bellary-Hospet area of Karnataka, the heart of the high-grade iron ore belt, and
spread over 3,700 acres of land. It is just 340 kms from Bangalore, and well
connected to Goa and Chennai ports.

AREA OF OPERATIONS
India’s third largest steelmaker, JSW Steel Ltd. consists of the most modern, eco-
friendly steel plants with the latest technologies for both upstream & downstream
processes. JSW Steel Ltd. has received all the three certificates:

• ISO:9001 for Quality Management System

• ISO:14001 for Environment Management System
• OHSAS:18001 for Occupational Health & Safety Management System

JSW Steel Ltd. Encompasses:

 Tarapur and Vasind Works (Downstream)

 Vijayanagar Works (Upstream)
 Salem Works

Facilities:
 Vijayanagar Works

Vijayanagar Works is a fully integrated steel plant, located in Bellary district, 340
kms from Bangalore. It is also well connected to Goa and Chennai ports. The
plant is also equipped with modern technologies to ensure international quality
standards. It produces products from iron ore pellets to hot and cold rolled flat
products.

Vijayanagar Works was the first Greenfield project in the world to have Corex
technology to produce Hot Metal. By 2008, Vijayanagar Works will achieve 7
MTPA status making it India's largest integrated steel plant at one location. By
2010, it will further expand to 10 MTPA. This makes it among the fastest growing
steel plants in the world. It's eco-friendly approach has also led to the
development of Vijayanagar into a modern township. Enveloped by acres of
greenery and maintained by JSW, Vijayanagar is prospering by leaps and bounds.
Be it education, career opportunity or women empowerment, the Company's
initiative has gone a long way in making Vijayanagar the success that it is today.
  Vasind and Tarapur :

It is here that all began. A new chapter was written in the history of Indian Steel
Industry when JSW made its foray at Vasind in 1982 and setup a 20 Hi CR mill.
JSW then acquired a mini steel mill, which moved on to become JSW Steel Ltd.
Apart from being a leading manufacturer of cold rolled and color coated steel,
Tarapur and Vasind works is today India’s biggest producer & largest exporter of
galvanized steel.
At Vasind Works, the Company has recently launched GALVALUME, a
revolutionary product in the steel industry. Its strategic location, with access to the
major ports of Mumbai, markets and raw material sources has worked to its
advantage.
The total capacity of Vasind and Tarapur Works is 0.9 MTPA of Galvanized,
GALVALUME & Color Coated Cold Rolled products.

As JSW grew phenomenally, it also steered Tarapur and Vasind towards newer
horizon of prosperity. Apart from providing more jobs, JSW actively participates
and organizes various social and cultural activities to make lives richer. The
region is now cleaner happier and even more beautiful. Better health initiative,
promotion of sports & education are few of the development initiative that has
gained in JSW presence.

 Salem Works:

JSW Steel group acquired the Company and took over the Management from
November 2004. Salem Works is the only integrated steel plant in Tamil Nadu and
is located at Pottaneri/M. Kalipatti villages and at about 35 kms from Salem. As
part of the JSW Steel group, the plant underwent a dramatic transformation and
started making profits from the first year onwards. A fast paced expansion plan
has been drawn for the company to quickly become the first 1 MTPA integrated
steel plant in Tamil Nadu.
The plant is having facilities for production of Pig Iron, Steel, Billet and Rolled
Steel products in the long product category. The present capacity is being
expanded to one million tones per annum. It has adopted the Sinter plant – Blast
furnace – Energy Optimizing Furnace – Ladle Furnace, Vacuum Degassing
Continuous Casting Machine – bar and rod mill route with iron ore as the basic
input material. It also has plants for generation of power and production of
oxygen. Salem Works is highly environment conscious and the process and
technology is designed for reusing and recycling the process waste. We have an
expanding green belt to provide a green environment.

Products of Salem Works have the hallmark of quality and combined with
competitive pricing, they are highly preferred in automobile and construction
sectors.
VISION AND MISSION

 VISION
Global recognition for quality and efficiency while nurturing nature and society
“It is said that in the journey of life, more important than where you are, is
where you are heading to….”
-Sajjan Jindal, Chairman and Managing director, JSW steel Ltd.

 MISSION
Supporting indias growth in steel domain with speed and innovation.

PRODUCT PROFILE
  Hot Rolled products:
HR Coil, HR plate and sheet, HRPO, HRSPO
Application: Automobile, Boiler and Pressure Vessels, Ship Building, Railways,
Transmission Towers, Oil and Petro Chemicals, Marine Containers, Coal and
Mining, General and Heavy Engineering

 Cold Rolled Products:

CR coil and Sheet
Application: Automobile, White good, Cold rolled formed section, General
engineering & fabrication, Packing, Drums/ barrels, Furniture

 Galvanized Product:
Galvanized Corrugated Sheet, GP Sheet and Coil
Application: Automobile, Boiler and Pressure Vessels, Ship Building, Railways,
Transmission Towers, Oil and Petrochemicals, Marine Containers, Coal and
Mining, General and Heavy Engineering.

 Pre-Painted Galvanized Product:

PPGI coil, PPGI sheet, PPGI profile
Application: Roof, Wall cladding and other building products, Household
appliances, Furniture, Automotives

 Jindal Vishwas GC Sheets

It is the roof that has to take the brunt of nature's extremities during its entire life
and hence utmost care must be taken in selection of the right roofing material.
Wrong choice of roofing and cladding can create losses in terms of human lives
and material in cases of natural disasters A good reliable roof with least number of
complications gives peace of mind to meet these challenging needs of the
customers, JSW offers superior quality Galvanized Corrugated sheets under the
brand name "Jindal Vishwas".

COMPETITORS PROFILE

 Tata Steel
Tata Steel, formerly Tata Iron and Steel Company Limited, is an Indian
multinational steel-making company headquartered in Kolkata, West Bengal,
India, and a subsidiary of the Tata Group. Wikipedia
Stock price: TATASTEEL (NSE) ₹ 359.90 +12.50 (+3.60%)
Founder: Jamsetji Tata
Headquarters: Mumbai
Parent organization: Tata Group
Subsidiaries: Tata Steel Europe, Tata Metaliks Ltd

 SAIL
Steel Authority of India Limited is an Indian state-owned steel making company
based in New Delhi, India. It is a public sector undertaking, owned and operated
by the Government of India with an annual turnover of INR 44,452 Crore for
fiscal year 2016-17. Incorporated on 24 January 1973, SAIL has 71,297
employees.
Stock price: SAIL (NSE) ₹ 33.55 +0.75 (+2.29%)
Headquarters: New Delhi
CEO: Anil Kumar Chaudhary (22 Sep 2018–)
Founded: 19 January 1954
Subsidiaries: Rourkela Steel Plant, NSPCL, Bhilai Steel Plant,

 Essar Steel
Essar Steel India Limited is a fully integrated flat carbon steel manufacturer –
from iron ore to ready-to-market products – with a current capacity of 10 million
tonnes per annum. Wikipedia
CEO: Dilip C Oommen (7 Jul 2011–)
Founded: 1998

AWARDS AND RECOGNITIONS

 Global Environment Platinum Award - 2015

 Global Sustainability Award 2015

 ABP News HR & Leadership Awards

 Global Training & Development Leadership Awards-2015

 JSPL Barbil awarded with NSCI Safety Award -2014

 National Award

 National Award

 National Safety Award 2006

 National Safety Award 2005

 British Safety Council

 Ernst & Young Entrepreneur Of the Year

 National Safety Award 2004

 Good Green Governance Award

  National Energy Conservation Award 2007

 Think Odisha Leadership Award 2008

 CII Chhattisgarh Human Resource (HR) Excellence Award-2006

 Kaizen Qualiy Convention Award-2007

 Computer Literacy Award

 Greentech CSR Award 2013

Golden Peacock Eco-Innovation Award 2013

JSW Steel has won the Golden Peacock Eco-Innovation Award for the
year 2013 by the National Jury on July 19, 2013.

Industry Leadership Award

JSW Steel has won "The Industry Leadership Award" at Platts Global
Metals Awards which recognises achievements in steel, metals and
mining ,on June 3, 2013.

SWOT Analysis

About Us: JSW steel is an Indian steel company owned by the JSW Group
based in Mumbai, Maharashtra, India. JSW Steel, after merger of ISPAT steel, has
become India's second largest private sector steel company.
Industry: Steel
Revenue: ₹485.27 billion (US$7.2 billion)
SWOT Analysis:
The SWOT analysis for Daimler is presented below:
Strengths Weakness
1. Strong presence in domestic 1. Very low capacity utilization
market 2. Less number of mines under its hood
2. Reduced labor costs
affects availability of raw materials
3. Experienced business units
4. First steel producer in the world
to use Corex Technology for
producing hot metals
Opportunities Threats
1. Growing economy therefor 1. Government changes to auction
increasing demand rules of mining
2. R&D in steel industry is 2. Rising cost of coal
underdone and can be a good
opportunity for cost reduction
3. Government regulations and rules

Strengths
1. Strong presence in domestic market – A 5.8% market share in India . Set
up in 1982 at Vasind near Mumbai, the group diversified and finally has a
very strong presence in India with plants in six locations in India –
Vijayanagar in Karnataka, Salem in Tamil Nadu, and Tarapur, Vasind,
Kalmeshwar and Dolvi in Maharashtra.

2. Reduced labor costs – According to a study , In 2014-15, SAIL spent

seven times more on employees for producing each tonne of steel as
compared to JSW Steel. JSW has the lowest employee costs among the
major players in the industry.

3. Experienced business units - JSW Steel is testimony of years of

experience and a self-motivated culture that has concluded in the company
becoming the top manufacturer of value added and high end steel in India.
 4. First steel producer in the world to use Corex Technology for
producing hot metals- JSW Steel is the first Indian Company to use the
Corex technology to produce hot metal. They went for this technology
although it was untested in Indian conditions due to its benefits to the
environment.

Weakness

1. Very low capacity utilization- It has an aggregate capacity utilization of

only 76% whereas competitors like tata have 103%.

2. Less number of mines under its hood affects availability of raw

materials -
Only 5 mines available for raw material acquisition

Opportunities

1. Growing economy therefore increasing demand- Indian steel

consumption of 65kg per capita is well below world average of 235kg per
capita leaving plenty of room for market growth in 2015

2. R&D in steel industry is underdone and can be a good opportunity for

cost reduction- Using Corex technology, JSW has already pioneered in
R&D in the industry. It needs to maintain its zeal and keep investing in
R&D in order to reduce manufacturing costs.

3. Government Rules and Regulations - The government has recently

imposed minimum import price on steel imports for six months that can
benefit JSW having strong presence in trade segment.
Threats

1. Government changes to auction rules of mining - The government

changed rules protecting tribal rights, forests and environment to ensure
that more than 130 mines do not face fresh auctions and are retained by
the miners concerned. This might hinder new acquisition of mines by
JSW.

2. Rising prices of Coal - The cost of power generation in the state had
firmed up by 5% to 7% after the public sector giant Coal India Ltd (CIL)
raised coal prices by 6.3% few months back and the ministry of railways
started levying coal terminal charge for loading and unloading of coal.
This will thus increase the cost of raw material and controlling the cost of
manufacturing will be a threat.
 CHAPTER 3
ORGANISATION STRUCTURE
Organization design is fundamentally the manner in which a management
achieves the right combination of differentiation and integration in the
organization operates in response to the level of uncertainty in its external
environment. Differentiation here refers to the subdivision of functional or
departmental units each concentrating on a particular aspect of the organizations
operation and integration refers to the linking of differentiated units to achieve
unity of effort in working towards organizational goals. In times of high
uncertainty greater organizational effectiveness is achieved through high
differentiation and high integration and in times of low uncertainty organizational
effectiveness is achieved through low differentiation and low integration.
Organizational structure is the formal and informal framework of policies and
rules with which an organization arranges its lines of authority and
communication and allocates rights and duties. It determines the manner and
extent to which roles, powers and responsibilities are delegated, controlled and
co-ordinated and how information flows between various levels of management.
Hence this structure depends entirely on the organizations objectives and the
strategy chosen to achieve them.

MANAGEMENT STRUCTURE
ORGANIZATIONAL HIERARCHY
 CHAPTER 4
Conclusion
 JSW does not own mines for some of its basic raw materials.
 Inability to utilize 100% capacity.
 Low perception among investors about the company’s management and
ability to sustain growth.
 Although the company is focusing a on R&D, the budget is only a fraction
of what international competitors can afford to invest in their R&D
activities.
 The labor and conversion costs ( these include labour cost, energy cost and
other manufacturing costs) per tonne of steel are among the lowest in the
industry( both domestically and internationally)
 JSW is India’s largest private steel maker. This allows JSW to the
economies of scale in production and better bargaining power with respect
to suppliers and customers.
 JSW steel is located in a fast growing country like India where the per-
capita steel consumption is still low but this means huge potential for
growth.
 JSW steel has access to top talent from the country and that too at
comparatively lower prices than the competition.
 JSW steel still does not have captive mines and once they have it, their
cost structure would improve further and the external risk to the company
will be mitigated to a large extent.
 The current economic scenario where steel demand is declining around the
world is another major area of concern for the organization. The company
has already postponed and/or delayed some of its projects which were in
the pipeline.

Bibliography / Referances

Websites:
www.steelbb.com
www.steelonthenet.com
www.shumaonline\costreductionstrategies.com
www.energysavings.com
www.google.com
 Referance books :
Principles of Cost Accounting – Mr. N.K Jain
Financial management – Mr. I.M. Pandey.

EXECUTIVE SUMMARY

This report is the presentation of findings of the project work carried out as a part
of the MBA 1St semester Project at JSW Steel Limited
Overall study of JSW and recommendations for cost optimization strategies were
studied. Broad study was done of the whole plant & later as a sampling CCL plant
was studied. The project involved the initial study of basic operations at this plant.
The main objective was to understand and analyze Industry Scenario-Macro and
Micro(relating to the industry of dissertation).

The various touch points were analyzed, and discussions were made with
employees responsible in these areas to understand the prevailing processes and
areas of improvement. Based on these recommendations, cost optimization
strategies have been made as part of this study.
The main products of the company are GI, GL, PPGI & PPGL. The project is
mainly about study of the costing of these products and analysis of the variable
costs for cost reduction by studying various cost elements involved.
The objective of project is Analysis of conversion cost of production & to find the
area of cost optimization that can be adopted by company.