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Industrial Tour Report

On

KSRM Steel Plant Ltd.

(A concern of Kabir Group Industries)

Department of Management

University of Chittagong
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KSRM Steel Plant Ltd.

(A concern of Kabir Group Industries)

Industrial Tour Report

On

Production Department of KSRM

Submitted to:
Dr. Shameema Ferdausy
Professor
Department of Management
University of Chittagong

Submitted By:
Md. Hasan Tareq
ID: 14302143
8th Semester, BBA Program
Department of Management
University of Chittagong

Date of Submission: 27th june, 2019

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LETTER OF SUBMISSION

27th June, 2019

Dr. Shameema Ferdausy
Professor
Department of Management
University of Chittagong

Subject: Submission for Tour Report on KSRM

Dear Mam,

With the greatest pleasure, I would like to submit my industrial tour report on KSRM that
have assigned to me to prepare as the analytical requirement of my BBA (8th semester) course
under the Department of Management, University of Chittagong. During the tour and
preparation of report on it, I have seen and learnt how a capital intensive industry does really
work. It has been a very positive and uplifting experience as I have learnt practically a lot that
would not be possible otherwise.

I sincerely hope that you would be gracious enough to accept my tour report for evaluation
and thus oblige thereby.

Sincerely yours,

Md. Hasan Tareq

ID: 14302143
8th Semester, BBA Program
Department of Management
University of Chittagong
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ACKNOWLEDGMENTS

(All the praises and thanks be to Allah)

I have the immense pleasure and satisfaction in presenting report which is termination of my
project work at KSRM. I am grateful to all those who spare their mindfully art of judging of
merits and faults and have given valuable suggestions.

From the very outset, I would especially like to extend thank to my departmental guide
honorable teacher Dr. Shameema Ferdausy, Professor, Department of Management whose
inspiration and consideration during the entire program made it possible to prepare this
report.

I also would like to thank to all of the field staffs of the KSRM and special thanks to
honorable Mr. M S Kabir, the advisor, HR official for giving us necessary information about
the industry.

Finally, I am thankful to all of my group members who assisted me to make my tour report as
success.
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SUPERVISOR’S DECLARATION

I am happy to certify that the industrial tour report of KSRM is prepared by a student of
Department of Management belonging to Md. Hasan Tareq, ID – 14302143, Session: 2013-
14, for the partial fulfillment of the BBA program from University of Chittagong.

I certify that this work and contents of this report has been conducted under my supervision.

………………………………….

(Supervisor)
Dr. Shameema Ferdausy
Professor
Department of Management
University of Chittagong
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EXECUTIVE SUMMARY

As part of my BBA program, I have completed my industrial tour program in KSRM. During
my industrial tour, I have gained valuable and practical knowledge. So based on my learning
and experience, I have completed my industrial tour Report.

However, in the very first part, the introduction, objectives, scope, methodology and
limitations of this report are described.

The second part represents the overall company profile. In this profile contains overview of
the organization, history, slogan, mission, vision, values and objectives of the organization.

In the third part, Production department of KSRM is also represented.

And in the fourth part problems, recommendations and conclusion are being added.
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TABLE OF CONTENTS

S/L No CONTENT PAGE

1.1 9
Introduction
1.2 Objectives of the Study 11

1.3 Scope 12

1.4 Research Methods 13

1.5 Limitations 14

2.1 16
An Overview of KSRM
2.2 KSRM at a Glance: 17

2.3 Company Profile at a glance 18

2.4 Sister concern of Kabir Group of Industries 19

2.5 Slogan & Core Values 19

2.6 Mission 19

2.7 Vision 20

2.8 The Core Values 20

2.9 Corporate organogram 22

2.10 Departments of KSRM 23

3.1 25
Production / Technical Department
3.2 27
Production Department
3.4 Manufacturing Process 28

3.5 Production Process of KSRM 29

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3.6 Production Flowchart of The Company 31

3.7 Production Capacity 32

3.8 Technical Analysis 32

3.9 Comparison between Two companies (BD Thai 33

Aluminum vs. KSRM)
4.1 35
Problems of KSRM
4.2 Recommendations 36

4.3 Conclusions 37

38
References

Appendices 39,40,41,42,43,44
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Chapter One

Introduction
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1.1 Introduction:

Bangladesh, a small nation is growing bigger by the minute. Today, our economy is growing
at a consistent, blistering rate of more than 6 percent. This makes us one of the fastest
growing economies in the world. Considering economic development of our country, it can
easily be said that Steel Industry is contributing one of the key role from the very beginning.

Kabir Steels Re-rolling Mills (KSRM), a concern of Kabir Group of Industries, is

positioned to play a crucial role in building the sustainable cities of the future. Their steel
makes up the backbone of new buildings and large public infrastructure projects. KSRM is
experiencing an increased demand for high-quality steel products where they are witnessing
an increased supply of low grade steel in country which decaying the image of local steel
industry. For the last four decades, KSRM is committed to maintain State of the Art Facility
in production process and maintain high quality international standard which presents new
opportunities and challenges for the business. But it is not just the business environment that
matters to its stakeholders. The way that they conduct their affairs and their business as well
as the quality and sustainability of main products, is also of great importance to their
stakeholders. They are thus committed to responsible operations and upstanding conduct
across our operations.

As a student of business studies, I felt great interest and attempted to visit a steel factory like
KSRM to take knowledge about the real business. Although this is very difficult to find out
the real and contemporary situation in any industry, as the activities of these areas are very
wider and more complex, we dared to gather concept and ideas about situational areas in
KSRM with my little endeavor
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1.2 Objectives of the Study

This study is aimed at providing me invaluable practical knowledge about the “KSRM”. It
will help me to develop my concept of steel industry and its operations. This report focuses
on the following objectives:

(i) To explore about the profile of KSRM.

(ii) To be acquainted with how steel industry perform its operations in its all aspects.
(iii) To find out the problems of KSRM.
(iv) To provide some suggestions to KSRM.
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1.3 Scope

The scope of the study plays a significant role for a student and in that case my scope was
vast enough. Due to some organizational rules and restrictions, in some cases the scope of
learning was limited.

The study mainly has covered the following areas related to KSRM.

 The background of KSRM.

 The production process of KSRM.
 The managerial ability of KSRM.

We have taken their catalog and quarterly publications and list of human resources.
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1.4 Research Methods:

In order to complete this report, I proceeded through a work plan. I physically visited the
factory and interviewed and discussed with executives of different levels. The information
and data for this report have been collected from both the primary and secondary sources.
Details are given below:

Primary Data:

Relevant primary data for this report have been collected through direct visit and discussion
with concerned personnel.

1. Direct conversation method was used to collect information for preparing this report
2. Direct observation of the KSRM officials.
3. Personal contact with Human Resource executives.

Secondary Data:

Secondary data has been collected from the following sources:

1. Company profile
2. Company information from official website
3. Newspaper and journal
4. Previous report
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Data Processing:

Finally, the collected raw data are classified, interpreted, and presented with the help of some
latest computer software such as Microsoft Word and Microsoft Excel. Microsoft Excel has
been used to present the data graphically.

1.5 Limitations

The study has been conducted subject to certain constraints which make the company more
difficult to run all the activities in a good manner. These are:

 We have been allowed only one day for the industrial tour which is not sufficient to
study the Industry in depth.

 For the company strategy, the authority didn’t provide confidential data. In view of
the business strategic division, the company has been found to be hesitant in
furnishing relevant data.

 The rate of success of my study may be limited as I might have failed to collect
proper information due to lack of my experience.

 There were lacks of adequate information due to not resourceful web materials.

 I therefore, hope that this report will be evaluated with an approach subject to their
cognition of the above-mentioned shortcomings.

I therefore, hope that this report will be evaluated with an approach subject to their cognition
of the above-mentioned shortcomings.
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Chapter Two
Company Profile
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2.1 An Overview of KSRM

Thirty five years ago, in 1984, KSRM (a concern of Kabir Group of Industries) began its
journey as the second steel re-rolling mills in Bangladesh. They strived to change the civil
construction landscape of Bangladesh through constant innovation. To be trusted, reliable,
and safe, we meticulously met international standards of steel, able to compete with the
global market. They introduced the first Grade 500W reinforcing steel branded as XTREME,
steel for special moment resisting frames.

They not only produced steel but preserved the environment by recycling slag and installing
European standard Air Pollution Control system and Water Treatment Plants. They also
embarked on CSR projects focusing on the well-being of people and environment. Over the
years, they gradually became the forerunner in their field and established themselves as a
symbol of reliance.

KSRM is one of the leading steel manufacturing companies in all over the country. The core
driver was the belief in evolution in steel products, which resulted in bringing the first EMF
tested rod, the first steel brand that passed 5 million cyclic loading Fatigue testing in the U.K.
and conformed to 10 global standards. With the largest steel producing factory in the country
and employing the best technology from Europe, the company maintains volume with
uncompromising quality. KSRM is dedicated to providing the best solution for the
construction industry.
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2.2 KSRM at a Glance:

1984 : Started first production of 40 Grade bar from ship yard plate.

2001 : Started first production of 60 Grade bar.

2010 : Started first production of TMT 500W bar with production

capacity 0.4 million MT/year.

2016 : Production capacity increased to 0.8 million MT/year after

Revamping of previous mills.

ISO 9001 : 2008 certified

Technology : A unique technology from Switzerland

Production capacity : 2600 MT/Day (Present), 8lac MT/year

State-of-the-art factory is equipped with completely automatic Re-rolling mills starting from
billet charging to re-bar delivery.
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2.3 Company Profile at a glance

Name of the Organization : KSRM

Constitution of the Firm : Private Limited Company.

Business Started : 1984

Corporate Office : Kabir Manzil, Sk. Mujib Road, Agrabad,Chittagong.

Factory location : Ghoramara, Bara Kumira, Sitakunda, Chittagong.

Type of the organization : Manufacturing

Source of Raw materials : From local company and U K.

District Coverage : 64

Present capacity : 8lac Metric Ton

Number of Employees : 2500+

Dealers/Partners : 500+

Support : 24/7

Deputy Managing Director : Shahriar Jahan

Website : http://ksrm.com.bd/
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2.4 Sister concern of Kabir Group of Industries

• KSRM Steel Plant Ltd.

• KSRM Billet Industries Ltd.
• Kabir Oxygen Ltd.
• Kabir Ship Breaking Ltd.
• S. R. Shipping Ltd.
• Royal Cement Ltd.
• Brave Royal Shipping Ltd.
• Khawaja Azmir Steel Industries

2.5 Slogan & Core Values

With the slogan “shekor theke shikhore” the KSRM is moving towards its destination for
making profit as well as putting good contribution for the country’s economy.

2.6 MISSION

The mission of KSRM is to ensure the availability of steel products of consistent quality
which conform to the international standards of the world. They intend to remain in a
constant state of improvement by sorting out innovative approaches in the further
standardization of the products and the process of manufacturing via world class research and
development, so as to achieve a sustainable growth model without the compromise of
supporting the community.
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2.7 Vision

Aspire to be a world leader in the manufacturing of world class steel of the highest and
consistent quality using innovative and state of the art technology while ensuring energy
efficiency and environmental sustainability.

2.8 The Core Values

 Sustainable Growth: Consistent improvement in the quality of products and

services, efficiency of processes and profitability of business; continuously
anticipating and responding to the changing business and environmental needs using
innovation; sharing knowledge and experience within the organization.

 Quality: Create products and services valued by our customers; constantly improving
their processes through innovation and adopting best practices; reducing wastage;
minimizing costs; investing in systems and technology and developing their people to
build a highly capable workforce.

 Reliability: Be the preferred business partner of their customers and suppliers by

offering quality products; providing their best and timely service before, during and
after the business transactions and honoring all their commitments despite challenges.

 Trust: Preserve the faith and goodwill of all their stakeholders – Customers,
shareholders, suppliers, employees, regulatory bodies and society by-adopting ethical
and transparent business practices, being fair and honest in all their dealings and
building robust governance.
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 Leadership: Be a role model, setting benchmarks through their products, processes

and people; constantly moving ahead of competition by differentiating their products,
innovating their processes, increasing our market share and nurturing talent to develop
leaders within the organization.

 Social responsibility: Acknowledge and fulfill KSRM obligations towards the

society by undertaking initiatives for the general uplifting of the society, building
capability and making facilities available to the underprivileged.

 Customer Satisfaction: Delight their external and internal customers at every stage
of our interaction with them by truly understanding their needs, offering them their
best products and services, treating them with respect and actively seeking and acting
on their feedback.
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2.9 Corporate organogram

Organogram is an intuitive reflection of organization structure, one of the most common

diagrams to illustrate the relationships among departments, superiors, and subordinates
vividly and briefly. Here is the organogram that KSRM follows which start from board of
director and ended with some sub-departments.
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2.10 Departments of KSRM

There are several departments KSRM has for running its activities and each department has
to accomplish all the activities that are imposed on. However, the following are the
departments that KSRM belongs to:

 HR and Admin Department

 Internal Audit Department

 Research and Development Wing

 Finance and Accounts Department

 Design and Engineering Department

 Marketing and Sales Department

 Supply Chain Department

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Chapter Three
Findings and Discussions
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3.1 Production / Technical Department

After the successful completion of my industrial tour at KSRM, I have found the following
facts especially on Production Department which are one of the most crucial parts to run the
business in the extreme competitive market.

3.2Production Department

KSRM has a separate production department, which is the vital for production of steels. It has
extreme goodwill and a unique position in the international market for quality steels. For that
reason, the company enjoying great advantage for steels in home and abroad.

Production of high-tensile rebar’s and other deformed-type long products for concrete
reinforcement is a key issue for countries where the construction of buildings and
infrastructures is growing. This type of product is even more important for geographical areas
with high seismic activity.
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The ideal answer to these needs is the most advanced technologies for low-cost production of
high-tensile commercial steel long products. The Danieli QTB, processes, installed at the
KSRM Steels Ltd rolling mills, is the most efficient available today to produce these types of
steel.

A fast growing building and infrastructure construction activity characterizes the economy of
Bangladesh which means increasing demand of high-tensile rebar’s and other deformed- type
long products for the concrete reinforcement. The typical basic arrangement for such a plant
foresees a rolling mill for production of high- tensile deformed bars in straight bundles.

The new rolling mill, that started rolling its first bars in early March 2008, has introduced the
latest long product hot-rolling technologies for the first time in Bangladesh, making this plant
the most advanced and highly-productive rolling mill in the whole area.

The state-of-the-art bar mill, fed by a 75-tph pusher-type reheating furnace (supplied by
BENDOTTI), is basically composed of 18 SHS stands, QTB on-line rebar quenching & self-
tempering system, automatic cooling bed and finishing facilities for straight bars production.

The mill is designed to produce 8 to 38-mm-dia quenched and self-tempered deformed bars
for reinforced concrete, at rates of up to 75-tph. The Danieli supply also included a complete
water treatment plant for the new rolling mill.

Electricals, automation system and process control for the rolling mill and auxiliary plants are
from Danieli Automation.
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3.3 Plant description and highlights:

The mill is entirely made up of the latest generation Danieli heavy-duty SHS housing less
type rolling stands, arranged in H and V sequence for twist-free rolling at the roughing and
intermediate/pre-finishing area.

The last portion of the finishing mill, arranged in H-H sequence, is specifically designed for
the slit rolling process for production of smaller size deformed bars. The multi-strand slitting
system, performed at the finishing mill, grants high output rates, enabling to reach the full
reheating furnace nominal capacity even with the smallest rebar size range.

This system is a combination of special roll pass design and designated guide equipment to
shape and longitudinally separate the incoming rolled stock into two, three or four individual
strands, then simultaneously rolled down to the final rebar size at the finishing mill stands.

The new mill slit rolls on 4, 3 and 2 strands, for production of 8-mm, 10-mm, 12 and 14-mm-
dia deformed bars, respectively, at speeds of up to 12.5 meters per second. A multi-strand
QTB line is provided at finishing stand delivery side, for on-line rebar quenching and self-
tempering. This is a significant technological step-forward that will make possible production
of on-line treated high-tensile/wieldable rebar’s for the first time in Bangladesh.

The straight bars production outlet includes dividing shear for multiple-length bars at cooling
bed entry, 66-m-long automatic walking beam type cooling bed with associated feeding and
delivery devices, bar cut-to-length system with stationary cold shear, automatic bundling,
weighing and collecting facilities.
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3.4 Manufacturing Process

Bangladesh Steel Re-Rolling Mills Limited has two different production steps after merger.
At first step, there is a Steel Melting Works unit (previously known as Meghna Engineering
Works Limited) where MS Billet is produced from scraps and sponge iron etc. By rolling this
MS billet the next part of the company produces MS Rod and other MS products.

The above pictures shows the KSRM steel manufacturing process by which it is very easy to
understand how the production used to be incurred. However, the way KSRM manufactures
their products is very modern system.
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3.5 PRODUCTION PROCESS OF KSRM

 MS Billets of 130x130x3000mm or 100x100x3000mm of Grade 40 and 60 are used

for the production of rolled products such as Re-bars, Shafts, Angles and Channels.

 Raw Materials and Billets (common heat wise are selected as per Rolling Program)
are processed very flexibly.

 The billets of proper composition are heated in a reheating furnace of 20 ton /hr
capacity as per specified heating parameters. Required Quality Checks are done on
completion of this stage.

 Hot Billets shall then enter the rolling mill and pass through 3 hi mill, Roughing (R1,
R2, R3, R4), Intermediate and Finishing Stage (5A, 5B, 6, 7, 8, 9 th stands) and shall
also achieve all the correct process parameters. Repeater or Skew tables are used
alternatively. At each stage Quality Testing are carried out.

 Quality check procedures are performed on the finished product as per the standard
procedure.

 If it passes the QC test (dimensional accuracy, bend and re bend test and tensile
strength test), the rolled products are cut to length in gauge beam and shall then be
weighed and tagged accordingly.
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The rolling process used by the factory is presented below which may understand the process
more easier way. The Production Flowchart is:
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3.6 Billet Production Process

The KSRM (a concern of Kabir steel group) has the following production process:
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3.7 Production Capacity

Production capacity of KSRM Steels Limited enhanced to 800,000 MT per year. A

syndicated term loan of US$ 40 million and BDT 5,908 million, raised by a consortium of 25
banks and financial institutions, for KSRM Steel Mills Limited.

3.8 Technical Analysis:

In last one year KSRM share price is given below:

Here we looking form given chart share price is same behave from last year to this year, as
company fall share value December to May and June to September share value randomly
rise. At last 03 September, 2013 share price was open 74.2 Tk. and close 75.6 Tk.
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The analyst looks for patterns, whether trading is taking place in an upward flat. In a
downward market the analyst look for the trough which can be identified only after reversal
of the downward pattern after confirmation on of the reversal the investor by.

3.9 Comparison between Two companies (BD Thai Aluminum vs. KSRM)
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Chapter Four

Problems, Recommendations &

Conclusions
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4.1 Problems of KSRM:

The KSRM enjoys such kind of business by making huge profit as well as by putting good
contribution for the country’s economy. Despite of all those, it also has some impediments
which are mentioned below:

 Ineffective matching of supply with demand which makes the KSRM to face some
difficulties while serving the society and making profit. Basically equilibrium is the
point where demand for a product equals the quantity supplied. But they sometimes
fail to match the demand and supply with proper combination.

 Complexity Delivery & transportation or unavailability is another problem for

KSRM. In most of the times this problem forces the authority not to reach to the
destinations within given time from the clients which creates a bad impact on the
KSRM.

 Having good capacity of warehouse is very much important for a company like
KSRM. But the warehouse capacity is not sufficient for them and makes them feel
to lack of this.

 Getting proper logistic support is one of the vital issues to make the business
successful one. But considering this side, KSRM faces another problem which is lack
of proper logistic support.

 The agency problem is a conflict of interest inherent in any relationship where one
party is expected to act in another's best interests. Exactly on that point KSRM faces
few difficulties.
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4.2 Recommendations

According to the above observations we like to enclose the following recommendation for the
improvement:

 If KSRM knows its capacity constraints and demand patterns then it will be very
easier to develop strategies for matching demand and supply for its own.

 A successful integration of freight and public transportation creates a seamless

movement for both customer and KSRM itself. So it will be wise to make this thing
happen for the future betterment.

 As the new competitors are entering market with improved capacity KSRM should be
concerned about capacity expansion and always keep eye on development of
innovative technology.

 They should arrange a utility management team as early as possible for continues
operation and for avoiding any kind of confliction. KSRM also can be developed
more disciplined production processes in line with demand as the customer mostly
want KSRM product.

 Need to increase more sales by reducing price for maintaining effective inventory or
warehouse. Sometimes it creates problem when production is much more than the
vacant place in warehouse.
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4.3 Conclusions:

Industrial tour on KSRM really opened an arena of knowledge of real situation. I think that it
has a deep concern about its better quality assurance, modern production technology, meeting
customer demand, effective marketing strategies etc.

KSRM Group is the reputed steel manufacturing company in Bangladesh. Being one of the
leading companies in Bangladesh, it produces quality products for customer. KSRM always
concerned for making perfect steel by which customer using it with their highest content.
They intend to remain in a constant state of improvement by sorting out innovative
approaches in the further standardization of the products and the process of manufacturing
via world class research and development, so as to achieve a sustainable growth model
without the compromise of supporting the community. It is expected that locally produced
steel will satisfy the consumers in view of quality.
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References

Taher, M.A. & Khan, A.A. (2015). Human Resource Management & Industrial Relations (4th
ed.). Bangladesh: Abir Publications.

K. Bugayev, Y.Bychkov (2001). Iron and Steel Production (1st ed.). The Minerva Group,
Inc.

Rufe D, Philif (2013). Fundamental of Manufacturing (3rd ed.). Michigan: Society of

Manufacturing Engineers.

KSRM Steel Plant Ltd. (2018). KSRM Official Audio Visual Presentation. Retrieved from:
http://www.youtube.com/watch?v=dGZI3DzpzBw

KSRM Steel (2019). Quality Control. Retrieved from: http://ksrm.com.bd/products/quality-

control/

Sakur, Md (2013, September 27). KSRM Corporate Documentary. Retrieved from:

http://www.youtube.com/watch?v=9gHUqDjZqGk
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Appendix: 1

Entrance of KSRM

Appendix: 2

Production Process of KSRM

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Appendix: 3

Billet Re-heating Furnace

Store Room
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Appendix: 4

Deformed bar/Re-bar 8-40

mm(500W & 60G) Billets 160*160*12000 mm3

Channel (75mmX40mmX5mm Angle(38mmX38mmX4mm

75mmX75mmX9mm) to 100X40mmX5mm)

Products of KSRM
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Appendix: 5
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Appendix: 6

Fatigue Test Report

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Appendix: 7

Mill Test Certificate