COMPANY PROFILE

INTRODUCTION

“Visakhapatnam Steel Plant (VSP), popularly known as Vizag Steel, is one of the
major steel producers in India”. Visakhapatnam steel plant the first seacoast based steel plant
of india is located 16 km south west of city of density i.e., VSP bestowed with modern
technologies( Germany and USSR technology). VSP has an installed capacity of 7.3 million
tons per annum of liquid steel and 6.773 million tons of saleable steel.

VSP has become the first integrated steel plant in the country to be certified to the
entire three international standards for quality (ISO- 9001) for environment management
(ISO-14001) for health and safety (OHSAS- 18001). The certificates covers quality system
of all operational, maintenance and service units besides purchase system, training &
marketing functions spreading over 5 regional marketing offices, 24 branch offices and stock
yard located all over the country. These are catering to the need and expectation of the
customer in various segments.

The details of Regional Offices and Branch Offices are brought out below

Region Location of Regional Offices Branches

East Kolkata Bhubaneswar, Kolkata, Patna
North Delhi Agra, Chandigarh, Dehradun,
Delhi, Faridabad, Ghaziabad,
Jaipur, Kanpur, Ludhiana.
West Mumbai Ahmadabad, Indore, Nagpur,
Mumbai, Pune.
South Chennai Bangalore, Chennai, Kochi,
Coimbatore.
South West Visakhapatnam Hyderabad, Visakhapatnam.

VSP successfully installed and operated efficient Rs: 460 Crores worth of pollution
control and environment control equipments and converting and barren land scope by
planting more than 5.3 million plants in 2,720 hectors has made the steel plant, steel
township and surrounding areas into a heaven of lush greenery.

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VISAKHAPATNAM BACKGROUND

With a view to give impetus to industrial growth and meet the aspirations of people
from Andhra Pradesh government of India decided to establish integrated steel plant in
public sector at Visakhapatnam (AP). The announcement to these effects was made in the
parliament on 17th April 1970 by the Prime Minister of India Smt. Indira Gandhi.

On 20th January 1971 Smt. Indira Gandhi laid the foundation stone for the plant near
Balacheruvu creek near Visakhapatnam city.
Seeds were thus sown for the construction of a modern and sophisticated steel plant
having annual capacity of 3.4 million tons of hot metal. An agreement was signed between
Government of Indian & the ERSTWHILE USSR on June 12th 1979 for setting up of on
integrated steel plant to produce structural & long products on the basis of produce structural
& long products on the basis of Detailed Project Report prepared by M/s M. N. Dastur &
Company. A comprehensive received DPR jointly prepared by soviets & M/s Dastur &
Company was submitted in Nov 1980 to Government if India.

The construction of the plant started on 1st Feb 1982. Government of India on 18 th
Feb 1982 formed a new company called RINL (Rashtriya Ispat Nigam Limited) and
transformed the responsibilities of construction, commissioning & operating the plant at
Visakhapatnam from Steel Authority of India Limited (SAIL).

The completion of construction and commissioning of the whole plant in 1992 the cost
escalated to around 8,500 Crores. It is the modern steel plant in the country. The plant was
dedicated to the NATION on 1st august 1992 by the Prime Minister Sri. P. V. Narasimha Rao.

It can be seen from the about table during the year 2002-2003 the company turned
around by earned a net profit of Rs: 521 Crores.

In the same year it bagged the Prime Minister Trophy for its Excellent Performance
in the Steel Industry. In September 2003 RINL become a DEBT FREE COMPANY.

VSP present rated capacity in 3.4 MT per annum of hot liquid steel. The plant is under
expansion to 7.3 MT per annum of hot liquid steel at a cost of around Rs: 12,000 Crores.

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REASONS FOR ESTABLISHMENT

All the steel plants in India were located in the non coastal area of the country;
because of that reason the plant authorities were incurring high import and export expenses in
the form of tax besides the transportation cost of the raw materials, finished products, spares
and other equipments for various purposes. The concern authority has gone in deep
discussion to reduce this type of the cost for at least to the latest steel plant for this reason and
the political threat for locating the steel plant in Visakhapatnam are the main points.

Compared to the other steel plants in India it is the 1st shore based steel plant.

BOARD OF DIRECTORS

Chairman cum Managing director : Shri Pradosh Kumar Rath

Director (Personnel) : Shri Kishore Chandra Das

Director (Finance) : Shri V V Venugopal Rao

Director (Commercial) : Shri P Raychaudhury

Director (Projects) : Shri P C Mohapathra

Company Secretary : Sri M Jagadeeshwar Rao

STEEL PRODUCTS OF VSP

Steel products By products
Angles Nut Coke
Billets Coke dust
Channels Coal Tar
Beams Anthracene Oil
Squares H P Naphthalene
Flats Benzene
Rounds Toluene
Re-Bars Xylene
Wire rods Wash Oil

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VISION

• To be a continuously growing world class company we shall harness our growth

potential and sustain profitable growth.
• Deliver high quality and cost competitive products and be the first choice of customer.

• Create an inspiring work environment to unleash the creative energy of people.

• Achieve excellence in enterprise management.

• Be respected corporate citizen, ensure clean and green environment and develop vibrant
communities around us.

MISSION

• To attain 20 million tons liquid steel capacity through technological upgradation

operational efficiency and expansion; to produce steel at international standards of cost
and quality; and to meet the aspiration of the stakeholders.

OBJECTIVES
• Achieve higher levels of customer satisfaction than competitors.
• Instill right attitude amongst employees and facilitate them to excel in their
professional, personal and social life.
• Be proactive in conserving, maintaining high levels of safety and addressing social
concerns.

CORE VALUES

• Commitment

• Customer satisfaction

• Continuous improvement

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• Concern for environment

• Creativity & Innovation

QUALITY POLICIES

• Supply quality goods and services to customers delight.

• Document, implement, maintain and periodically reviews the management system

including the policy, objective and targets.

• Focus on conservation of natural resource and energy with concern for environment.

• Comply with all relevant legal regulatory and other requirements applicable to products,
activities and processes in respect of quality, safety, occupational health and
environment, and also ensure the same by contractors.
• Use resources efficiently and reduce waste and prevent pollution.

• Continually improve quality, safety, and occupational health and environment

performance.

• Encourage development and involvement of employees.

MARKETING DEPT. INTRODUCTION

THE FOLLOWING STEPS ARE FOLLOWED FOR PROCEEDING WITH

ANY SALE

• Maintaining of database of materials, specification of materials , storage facilities,

loading facilities, pricing , duties, levies, complaints, test certificates, formats etc. .in
respect of iron & steel products
• Build-up of customer database through market information , journals, information
on competitors, applications of the products etc.. And maintain a database of prices of our
competitors.

• Study and analyses the customer requirements and give feedback to production
units regarding product specifications quality.

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• Formulate annual production plan based on customer requirements by the middle of
February for the next financial year.
• Formulate annual production plan based on annual marketing plan by the end of
February, for the next financial year by giving monthly mill wise break –ups.
• Dispatch of materials to branch stockyards as per their requirements to meet their
monthly targets.

INFRASTRUCTURE OF VSP

Location and general layout

The plant is located on the coast of bay of bangle, 16 km to the south – west of the
Visakhapatnam port. It lies between the northern boundaries of the national highway No: 5
from Chennai to Kolkata are the south west Howrah – Chennai railway line.
Climate
Visakhapatnam has warm and humid climate. April to June is the warmest months of
the year and December to February are the coldest months. The benefits from the south west
monsoon and he northeast monsoon. The average annual rainfall is 873.6mm. Highest mean
monthly temperature is 37.8 deg. C

MAJOR PLANT FACILITIES

VSP has the following production facilities:
• Three cock ovens batteries of 67 ovens, each having 41.6 m3 volumes
• Two sinter machines of 312 sq. m area.

• Three blast furnace of 3200 m3 useful volumes.

• Steel melting shop (SMS) with three L.D. converters (two operating and one standby – by
of 150 tons each capacity each and 6 nos. of four standard continuous blooms casters)

• Light and medium merchant mill (LMMM) of 7, 10,000 tons per year capacity

• Wire rod mills (WRM) of 8, 50,000 ones per capacity

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Modern Technology
VSP is the most sophisticated and modern plant in the country. Modern
technology has been adopted in many areas of production some of them for the first time in
the country. Among them are

• Selective crushing of coal

• 7 meter tall coke oven batteries with coke dry quenching

• On ground blending of sinter base mix

• Biggest blast furnaces in the country

• Conveyor charging and bell less top for blast furnace

• 100% slag granulation at the BF cast house

• Suppressed combustion- LD gas recovery system

• 100% continuous casting of liquid steel

• Gas expansion turbine for power generation utilizing blast furnace top gas pressure

• “Tempore” and “Stelmor” cooling process in LMMM & WRM

• Extensive waste heat recovery system

• Hot metal desulphurization

• Extensive treatment facilities of effluents for ensuring proper environmental

protection

Coke Ovens & Coal chemicals Plant

Coking coal after selective crushing and proper blending is subjected to
destructive distillation (heating in the absence of air) in the Coke Ovens. After heating for
nearly a period of 16-18 hours at a temperature of about 1100 degree C, Coke is obtained and
is used as a fuel as well as reducing agent in the Blast Furnace. The Coke Ovens of VSP are
engineering feats by themselves. They are the tallest Ovens meter constructed in the country.
The plant has 4 batteries of 7 meter. Another feature is the dry cooling of coke carried out by
the inert gas nitrogen thus, reducing pollution considerably. Beside bio-chemical plant
separately undertaken the treatment of effluents, by products like benzene, toluene, xylene,

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naphthalene, coal tar, creosote oil, pitch, and ammonium gas, VSP produces, among other
by-products, pushkala a prime fertilizer based on ammonium sulphate.

Sinter plant department

Sinter is a hard porous limp obtained by agglomeration of line of iron ore, coke,
limestone and metallurgical waste. This department by not wasting the powder and small
pieces of iron ore coal manganese, dolomite and limestone makes Sinter Cakes and put it for
reuse. This increases the productivity of Blast Furnace, improves the quality of pig iron and
decreases the consumption of coke rate.

Blast Furnace

Pig iron/ hot metal are produced in blast furnace. The furnace is named as
blast furnace as it is running with blast at high pressure with a temperature of 1150 degrees
centigrade.

Raw materials required for iron making are iron ore, sinter coke and limestone. For one ton
of hot metal production they need to use 310Kgs Iron ore, 1390 Kgs sinter and 627 Kgs of
coke with some other additives.

For production of pig iron/ hot metal there are two blast furnaces named as Godavari and
Krishna. They are of the largest and most modern furnaces in the country.

Steel Melt Shop & Continuous Casting

There are top blown converters each of 133cu.m volume, produce a total of
7.3 million tonnes of liquid steel per annum. This liquid steel thus produced is casted in 6-4
strand bloom casters.

A special feature in energy conservation is the collection of converter gas to be used as

a fuel in the plant. The entire molten steel as VSP is continuously cast at the radial type
continuous casting machines resulted in significant energy conservation and better quality

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steel. 100% continuous casting on such a large scale has been conceived for the first time in
India .

Rolling Mills

The cast blooms from continuous casting department are heated and rolled in the
three high speed and fully automated rolling mills namely Light & Medium Merchant Mill,
Wire Rod Mill and Medium Merchant & Structural Mill, to produce various long production
like Reinforcement bars, Rounds square, Flats, Angles, Channels Billets, Wire rods etc.,
Technologies adopted at Rolling Mill include world – class steel work and tem core process.

HIGHLIGHTS OF PRODUCTIVE WORK CULTURE

VSP, while formulating strategic new work culture, laid foundation on certain aspects,
which are sought to achieve such difficult targets under tremendous pressure of challenges:

• Mission & objectives clearly defined.

• Open house forums for executives
• Informal grievance handling
• Target based performance appraisal make based promotion.
• Proactive industrial relations
• Comprehensive motivational packages
• Quality Circles
• Multi skilled / job enrichment
• Rationalized manpower

DESIGN AND ENGINEERING

The soviet design organization, GIPROMETS designed the coke oven and coal
chemical plant (excluding the 7- mts tall battery portion) sinter plant and blast furnace.
MECON of Ranchi engineered the 7- mts tall coke oven battery with dry quenching Dastur
& Co. has designed the remaining facilities.

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Major source of Raw Materials

Raw Material Source

Iron Ore Lumps & Fines Bailadila, MP
BF Limestone Jaggayyapeta, AP
SMS Limestone UAE
BF Dolomite Madharam, AP
SMS Dolomite Madharam, AP
Manganese Ore Chipurupalli, AP
Boiler Coal Talcher, Orissa
Coking Coal Australia
Medium Coking Coal (MCC) Gidi/ Swang/ Rajrappa/ kargali

Employment Opportunities
At full operational stages, now VSP has employed about 17,617 technical staff, the
indirect employment due to various ancillary units development and other service is much
more.

Training and Development

● RINL believes that the employees are its assets and strives to realize their potential in
full for mutual advantages.

● A trained cadre of technical operative personnel and managerial cadre are provided
for the successful commissioning and operating of a large steel plant like VSP.
● A training and development center with facilities is available to develop trained cadre
of technical personnel and managerial cadre.

● Employees are sent to other steel plant on short duration tours to find solutions to the
various issues facing the company.
● Employees are also sent to supply manufacturing units.

● VSP provides training programmer for enhancing their knowledge.

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TOWNSHIP

A modern township with all amenities has been developed adjacent to the steel plant
site, to house the plant employees. The township is having protected drinking water supply,
waterborne sanitation, black top roads, schools, hospitals, welfare centers, shopping centers,
community facilities, parks etc.

Water supply
Operational water requirement of 36 mgd is being met from the Yeleru water supply
scheme.

Power supply
Operating power requirement of 180 to 200 MW is begin met through captive power plant.
The capacity of the power plant is 286.5 MW; VSP is exporting around 60MW power to
APSEB.

Advertising
VSP is also following advertising, which is one among the promotional strategies.

• Print media
• Brochures and booklets
• Posters and leaflets
• Directories
• Symbols of logo

• Billboards
• Displays

Pollution Control & Environmental Protect

Generally, integrated steel plants seen major contributor towards environmental pollution
as it discharge large volume of waste products. Elaborate measures have been adapted to combat
Air and Water pollution in VSP. In order to be eco- friendly VSP has planted more

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than 5.3 million trees over an area of 43 Sq. Km and incorporated various technologies at a
cost of Rs. 550 Crores towards pollution control measure.

Source of Funds

VSP raise its working capital from of 18 Bankers. The following are
the 18 banks. Where funds for finance are raised

● State bank of India

● Bank of Baroda
● Canara bank
● Allahabad bank
● IDBI bank
● UCO bank
● Union bank of India
● Axis bank
● IndusInd bank
● HDFC bank
● Deutsche bank
● Bank of Tokyo – Mitsubishi (UFJ)
● ICICI bank
● Andhra bank
● Vijaya bank
● Kotak Mahindra bank
● Yes bank
● EXIM bank

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ACHIEVEMENTS AND AWARDS
The effort of VSP have been recognized in various forces. Some of the major
awards received by VSP are in the area of energy conservation, environment
protection, safety, quality, circles, Rajbhasha, MOU, sports related awards and a
number of awards at the individual level.

Some of the important awards received by VSP are indicated below

• Indira Priyadarshini Vrikshamitra form massive deforestation of RINL 1992-93.

• National Energy conservation Award 2002, first prize in integrated
sector.
• Award from Andhra Pradesh pollution control Board for significant
work on calendar production technologies.
• Second prize for RINL ‟s stalls at international Trade Fair.
• Successful Re-Certificate or ISO 9001-2000
• Udyog Excellence gold medal award for excellence in Steel
Industry
• Golden Peacock (1st Prize) “National Quality Award-1996.
• Nehru Memorial National Award for Pollution control 1992-93 & 1993-94,Best
Management Award
• Ispat Suraksha Puraskar (1st prize) for longest accident free period, 1991-1994.
• Rolling Shield for “Ecological protection” by ministry of information &
Broadcasting.
• Greenstick safety silver Award for 2002-2003 in Steel Sector for
implementing best safety standards.
• INSAAN Organizational Excellence Award instituted by the Indian national
suggestion
• Schemes associated for the year
• year 2004 PM‟s Trophy
for 2005-2021

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 SWOT ANALYSIS

The SWOT analysis of RINL bring forth the opportunities and threats facing
RINL, with a view to building up on the strengths, exploiting the opportunities improving upon
the weakness and converting threads in opportunities. The strengths, weakness, opportunities
and threats of RINL are as under,

S- Strengths

• State of the technology

• High commitment to achieve capacity levels
• Areas of excellences
• Economics of scales
• High expansion potential
• Strong commitment to conserve environment

W- Weaknesses

• High capital rated charges

• Low return product – mix
• Productivity below international levels
• Practices not as per with international standards

SSO- Opportunities

• Shore based
• Sizeable export markets

• Access to import resources

• Proximity to southern markets

• Increasing domestic demand due to thrust on infrastructure development

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T- Threats

• Availability of iron ore and coal

• Rising input and costs

• Increasing competition

• Sensitive to exchange rate variation

• Possibilities of import duties declining further

• Excise duties continue to be high

• Lack of alternative sources for major raw materials
• Major marketing places (north & west) located far off

• Infrastructure continues to be inadequate.

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