INDUSTRY PROFILE
1|Page
INTRODUCTION: Ferro-alloys are one of the important inputs in the manufacture of alloys and special steel. Ferro-alloys impart special properties to steel. The function of the alloy is to increase resistance to corrosion, oxidation to improve hardness, tensile strength at high temperatures, wear and abrasion resistance with addition of carbon to increase creep strength, etc. The growth of Ferro-alloys industry is, thus, linked with the development of the iron and steel industry, foundry industry and to some extent, electrode industry. The principal Ferro-alloys are of chromium, manganese and silicon. The product series consists mainly of Ferro- manganese, silicon-manganese, Ferro-silicon and Ferro-chrome. Ferro-alloys are classified into two main categories; viz, bulk Ferro-alloys and noble ferroalloys. Due to high cost of power, Ferro-alloys industry has not been able to utilize its full capacity. Ferro-alloys industry spends 40 to 70% production cost on power consumption. The power consumption per tonnes of Ferro-alloys production in the country varied from 3,000 to 12,000 kWh. About 35 to 40% production of Ferro-alloys is exported. Ferro-manganese, silico-manganese, Ferro-silicon, high carbon Ferro-chrome and charge-chrome are exported after meeting the domestic requirements. India has sufficient raw materials of good quality, highly skilled technical manpower and the latest equipment and technology for production of Ferro-alloys.
INDUSTRY, PRODUCTION, DEVELOPMENT AND CONSUMPTION: As per Indian Ferro-alloys Producers' Association (IFAPA), the total installed capacity of bulk Ferro-alloys industry in India is 3.60 million tonnes per annum and for noble Ferro-alloys it is 40 thousand tonnes per annum. The industry is reported to be working at about 65% capacity utilization.
2
|Page
The Ferro-alloys industry is spread all over the country. It was established as an ancillary industry to cater to the growing needs of the domestic steel industry. Most of the Ferro-alloy units have been set up in Andhra Pradesh, Chhattisgarh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Orissa and West Bengal because of availability or proximity of the raw material. Recently, the industry has further spread to the North-Eastern Region of India. In Meghalaya, a number of small units producing Ferro-silicon and Ferro-silicon-manganese have come up. The production of various Ferro-alloys, as reported by IFAPA is given in Table-2. The overall production in 2007-08 has increased substantially by 18% from 2.00 million tonnes in 2006-07 to 2.36 million tones. The Ferro-alloys units have incorporated the latest technology in order to use non-metallurgical grade ores, both lumps and fines, after necessary beneficiation and agglomeration. The units have also incorporated the effective pollution control measures in the form of gas cleaning, deoxidizing and waste heat recovery.
Capacity of Ferro - alloys Industry in India
3
|Page
Reported Consumption of Principal Ferro -alloys (By Industries)
BULK FERRO-ALLOYS Bulk Ferro-alloys consist of principal alloys; viz, Ferro-manganese, silicon-manganese, ferrochrome, charge-chrome and Ferro-silicon.
FERRO-MANGANESE/SILICON-MANGANESE The Ferro manganese is produced as high carbon Ferro manganese with 7282% Mn, 6-8%C and 1.5%Si, medium carbon Ferro manganese with 74-82% Mn, 1-3% C and 1.5% Si, and low carbon Ferro-manganese with 80-85% Mn, 0.1-0.7% C and 1-2% Si. Manganese in the form of Ferro-manganese is added for hardening and desulphurization of steel. Adhunik Meghalaya Steels Pvt. Ltd, Bymihat, Meghalaya; Anjaneya Ferro Alloys Ltd, Mihijam, Jharkhand; Bhaskar Shrachi Alloys Ltd, Durgapur, West Bengal; Chhattisgarh Electricity Co. Ltd, Raipur, Chhattisgarh; Cosmic Ferro Alloys Pvt. Ltd, Bankura, West Bengal; Dayal Ferro Alloys Ltd, Ramgarh, West Bengal; Gautam Ferro Alloys Ltd, Ramgarh, Jharkhand; Haldia Steels Ltd, Burdwan, West Bengal; Impex Ferro Tech Ltd,Burdwan, West Bengal; Indsil Electro 4
|Page
melt Ltd, Palakkad, Kerala; Indusial Energy & Electro Chemicals Ltd, Raipur, Chhattisgarh; Ispat Godavari, Raigarh, Chhattisgarh; Maharashtra Electro smelt Ltd, Chandrapur, Maharashtra; Maithan Alloys Ltd, Burdwan, West Bengal; Meghalaya Sova Ispat Ltd, Meghalaya; Modern India Con-Cast Ltd, Birhampur, West Bengal; Monet Ispat Ltd, Raipur, Chhattisgarh; Nagpur Power Ind. Ltd, Kanhan, Maharashtra; Natural Sugar & Allied Ind. Ltd, smanabad,Maharashtra; Nava Bharat Ferro Alloys Ltd, Paloncha, Andhra Pradesh; Union Ferro, Raigarh, Chhattisgarh; Prakash Industries, Raigarh,Chattisgarh; SAL Steels Ltd, Gandhidham, Gujarat; Sandur Manganese & Iron Ores Ltd, Sandur, Karnataka; Sharp Ferro Alloys Ltd, Durgapur WestBengal; Shivam Iron & Steel Co. Pvt. Ltd, Giridih, Jharkhand; Shri Gayatri Minerals Ltd, Bihnupur, WestBengal; Shayam Century Ltd, Meghalaya; Shayam Ferro alloys Ltd, Burdwan, West Bengal; Sova Ispat Ltd, Durgapur, West Bengal; Tata Steel Ltd, Joda, Orissa; Tirumala Balaji Alloys Pvt. Ltd, Raigarh, Chhattisgarh; Vandana Global Ltd, Raipur, Chhattisgarh were the major producers of ferromanganese/silico-manganese. Silico-manganese, a combination of 6070% manganese, 10-20% silicon and 20% carbon substitutes low carbon Ferro-manganese in the steel industry. It consumes around 4,750 to 5,250 kWh power per tonne of silico-manganese produced. Silico-manganese has emerged as a more important alloy than Ferro-manganese. The country, thus, has emerged as a leading producer of silico-manganese. Silico-manganese was also produced by a number of small-scale Ferro-alloys producers. The total production of Ferromanganese in 2007-08 was about 391,000 tones which increased from 297,000 tonnes in 200607. Consumption of ferromanganese was 121,000 tonnes in 2007-08.The production of silicomanganese including Medium Carbon & Low Carbon silico-manganese was 911,400 tonnes in 2007-08 which has increased from 783,000 tonnes in 2006-07. The total consumption of silicomanganese by all industries is witnessing continuous rising trend. The reported consumption in 2007-08 at 189,500 tones attributed mainly to the rise in production of iron and steel.
5
|Page
FERRO-CHROME/CHARGE-CHROME Ferro-chrome is added to steel to impart properties of hardness, strength and making it stainless. Carbon content classifies the Ferro-chrome alloy into high carbon (6-8%), medium carbon (3-4%)and low carbon (1.5-3%) Ferro-chromes although chromium content in all the three grades is around 60-70 percent. Around 2.5 tonnes chrome ore with an estimated power consumption of 4,500 kWh is required to produce one tonnes of Ferro-chrome. Balasore Alloys Ltd, Balasore, Orissa; Ferro Alloys Corpn. Ltd, Garividi, Andhra Pradesh; GMR Technologies & Ind. Ltd, Srikakulam, AndhraPradesh; IDCOL Ferro Chrome Plant, Jajpur Road, Orissa; Indian Metals & Ferro Alloys Ltd, Theruballi, Orissa; Jindal Stainless Ltd, Dubari, Orissa; Jindal Steel & Power Ltd., Raigarh, Chhattisgarh; NavaBharat Ferro Alloys Ltd, Dhenkanal, Orissa; Rohit Ferro Tech. P. Ltd, Bishnupur, West Bengal; Rawat Ferro Alloys, Cuttack, Orissa; SAL Steel, Kachchh-Bhuj, Gujarat; Sri Vasavi Ind. Ltd, Bishnupur, West Bengal, Standard Chrome Ltd, Raigarh, Chhattisgarh And Utkal Manufacturing Services Ltd, Choudhwar,Orissa were the major Ferro-chrome producers. A sizeable quantity was also produced in small- scale sector. Tata Steel Ltd, FACOR and Indian Charge Chrome Ltd, the three major producers of charge chrome in the country are 100% export-oriented, having a total capacity of 162,500 tpy. Tata Steel with its charge-chrome plant at Bamnipal, Orissa, has a capacity of 50,000 tpy. FACOR has a capacity of 50,000 tpy charge-chrome at its Randia Plant, Bhadrak district, Orissa. Indian Charge Chrome Ltd, Cuttack district, Orissa has an installed capacity of 62,500 tpy. The production of high carbon Ferro-chrome/charge-chrome was 948,400 tonnes in 2007-08 which has increased from 801,000 tonnes in 2006-07. The production of low carbon Ferro-chrome was static at about 200 tonnes for 2006-07 and 2007-08. The consumption of ferrochrome in 2007-08 was reported to be 150,600 tonnes.
FERRO-SILICON Ferro-silicon contains about 75-90% silicon and minor amounts of iron, carbon, etc. It is produced by using quartzite, iron ore, coke and electrode paste. Around 1.75 to 2 tonnes quartzite is required to produce one tonnes of Ferro-silicon. A very high consumption of power; i.e., 9,000 to 10,000 kWh is required to produce one tonnes ferrosilicon. It is a powerful deoxidizing agent and its major applications are in electrical steel used for transformers and 6
|Page
dynamos; alloy steel for tools and automobile valves, in iron casting and mineral dressing. Bharat Alloys & Energy Ltd, Kurnool, Andhra Pradesh; Indian Metals & Ferro Alloys Ltd, Therubali, Orissa; Jayantia Alloys, Meghalaya; Silical Metalluric Pvt. Ltd, Palakkad, Kerala; SMS Smelters Ltd, Lekhi, Arunachal Pradesh; VBC Ferro Alloys, Medak, AndhraPradesh and Visvesvaraya Iron & Steel Plant, Bhadravati, Karnataka are the major producers of Ferro-silicon. Small-scale producers of ferrosilicon were also in operation in Kerala and TamilNadu. In Meghalaya, three units have sprung up to produce Ferro-silicon. The production of Ferro-silicon was 83,700 tonnes in 2007-08 which decreased from 93,000 tonnes in 2006-07. The domestic consumption of Ferro-silicon in the organized sector was 45,600 tonnes in 2007-08.
NOBLE FERRO-ALLOYS Noble Ferro-alloys are one of the vital additive inputs required especially in production of alloy and special steel. Noble Ferro-alloys also refer to Alloys used in small quantities and are relatively expensive compared to bulk Ferro-alloys. These are used in the production of steel as deoxidant and alloying agents. These high temperature alloys impart strength, resistance and stability within a temperature range from 260 to 1200oC. These alloys are used generally in turbine engines, power plants, furnaces and all the pollution control equipment. Noble Ferro-alloys include ferrovanadium Ferro-titanium, Ferro-nickel, ferromolybdenum, Ferro-tungsten and Ferro-niobium. In India, noble Ferro-alloys are mostly manufactured through alumino thermic process.
FERRO-NICKEL The reported consumption of Ferro-nickel in 2007-08 was 2,110 tonnes.
7
|Page
FERRO-MOLYBDENUM There were five important units; namely, Mehra Ferro-alloys, Electro Ferroalloys Pvt. Ltd, India Thermit Corporation, Dandeli Steel and Ferro-alloys Ltd and Eastern Metals & Ferroalloys Ltd. The all India production at 2,899 tonnes in 2007-08 which slightly decreased from3,120 tonnes in 2006-07. The consumption reported in 2007-08 was 940 tonnes.
FERRO-TUNGSTEN Production of Ferro-tungsten in 2007-08 was reported at 51 tonnes which decreased slightly from 54 tonnes in 2006-07. The internal consumption was 50 tonnes for the same year.
FERRO-VANADIUM Production of Ferro-vanadium in 2007-08 at 1,585 tonnes increased from 1,139 tonnes in 2006-07. The reported consumption in 2007-08 was 671 tonnes.
OTHERS
Misra Dhatu Nigam Ltd (A Govt. of India Enterprise), Hyderabad, produced chiefly cobalt, molybdenum, titanium and tungsten-based super alloys. The production details of various types of bulk Ferro-alloys and noble Ferro-alloys in 2006-07 and 2007-08 are already given in Table 2. Information on plant wise capacity of principal Ferro-alloys in India together with general specifications of products is given in Table-3. Table-4 indicates the consumption of principal alloys by different industries.
ENVIRONMENTAL ASPECTS AND FUTURE SCOPE: Studies reveal that depending on the ferroalloy manufactured, waste generation per day in 35 tpd and 50 tpd ferro-silicon and ferro-chrome plants, respectively, may be in the following range:Silica fines: 7 to 8 tonnes/day Fe-Cr slag (fine boulder): 40 tonnes/day Charcoal & coke fines: 7 to 8 tonnes/day.To utilise the waste from ferro-alloys industries, a typical Fe-Si or Fe-Cr manufacturing unit can provide material for 10 small-scale units for manufacturing bricks and each unit can produce 2,400 bricks per day. Other units which can be set up are board-and8
|Page
briquette making units. The utilization of waste materials by converting them to building materials will result in reduced building material cost and conservation of natural resources like clay and sand. The implementation of the Kyoto Protocol by European Union provides significant opportunities for ferro-alloys industry in India to implement CO2 reduction technologies which could be traded in terms of carbon credits. Installation of an electricity generation facility driven by the CO-rich furnace gas is an obvious means of achieving a CO2 saving.
FOREIGN TRADE Exports
In 2007-08, exports of ferro-alloys increased to 8,78,718 tonnes valued at Rs.4,484.95 crore as against 5,10,578 tonnes valued at Rs.1,642.78 crore in the previous year. In terms of quantity, exports of ferro-chrome accounted for 55% followed by ferro-silico-manganese (30%) and ferromanganese (13%) in 2007-08. The other ferroalloys together accounted for remaining 2% of exports. Exports were mainly to Netherlands (19%), Italy and China (15% each), Republic of Korea (13%) and Japan (9%). Imports
Imports of ferro-alloys increased to 1,64,104 tonnes valued at Rs.1,571.65 crore from 1,34,910 tonnes valued at Rs.1,333.2 crore in the previous year. In terms of quantity, imports of ferrosilicon accounted for about 59% followed by ferromanganese (13%), ferro-chrome (12%) and ferronickel (5%). Other ferro-alloys together accounted for remaining 11% of imports in 200708. Imports were mainly from China (44%) followed by Bhutan (17%), Russia and Norway (10% each) and South Africa (5%)
9
|Page
COMPANY PROFILE
10 | P a g e
NAVA BHARAT VENTURES LIMITED y
A diversified company with business interests in power generation, Ferro alloys, sugar & downstream products and infrastructure projects.
y
Supplies products to world class companies across the globe.
y
Employs efficient and eco-friendly technologies.
y
Committed to quality with sustainable development.
NBVL began operations with manufacture of Ferro silicon in 1975 at Paloncha in the State of Andhra Pradesh. Over the years, the capacity was enhanced by installing additional smelters at the same location as well as setting up of a green field smelter in the State of Orissa and NBFA emerged as one of the largest manufacturer exporters of Ferro alloys supported by 100% captive power, in India. NBVL diversified into production of Sugar and by products in 1980. The Company commenced Generation of Thermal Power, mainly for captive use, in 1997 and subsequently enhanced the capacity and is today a supplier of power to the grid as well. In 2005, the Company made a foray into Infrastructure Projects. Malaxmi NBFA Ventures Private Limited is set up by the Company along with the Malaxmi group to implement large projects in power, transportation and urban infrastructure. To reflect properly the diverse business activities of the company, the name of the company was changed to ³Nava Bharat Ventures Limited´ (NBV) in July 2006. Clear vision, customer focus, strict quality management and continuous improvement backed by highly competent and committed human
11 | P a g e
resources contribute to NBV's success. The Company maintains a record of uninterrupted dividend payout since inception.
POWER GENERATION The Company has set up pit head, coal based Thermal Power Plants in the States of Andhra Pradesh and Orissa in India to supply the power required by its Ferro Alloy Smelters and sell surplus power to utilities. The Power Plants are set up with eco-friendly technology and short gestation periods and are operated at PLFs above 90%. The Company has a team of competent and committed professionals and engineers from the power sector with in depth experience in construction, operation and maintenance of coal based thermal power plants.
Power Plant (A ndhra Pradesh)
Power Plant (Orissa)
Location : Adjacent to NBV¶s Ferro Alloy Plant Location : Adjacent to NBV¶s Ferro Alloy at Paloncha in Khammam district, Andhra Plant at Khargprasad in Dhenkanal district, Pradesh Orissa Capacity : 82 MW (under expansion to 114 MW) 12 | P a g e
Capacity : 30 MW (under expansion to 94 MW)
COGENERATION PLANT Bagasse, a non-fossil renewable fuel, produced by the Sugar Plant, is fired in a boiler which produces the steam required for process as well as for generation of power in a modern 9MW Co-generation Power Plant located in the premises of NBV's Sugar Plant at Samalkot.
Bagasse fired Boiler
13 | P a g e
Cogen. Turbine G enerator
FERRO ALLOYS NBV manufactures manganese, silicon and chromium alloys which are essential inputs for manufacture of steel. Manganese and silicon alloys impart strength and hardness and act as powerful deoxidizing agents. Chromium alloys make steel corrosion resistant and heat resistant. y
Manganese Alloys
y
Chromium Alloys
NBV's manufacturing plants are located in the States of Andhra Pradesh and Orissa, in India.
Ferro Alloy Plant (Andhra Pradesh) This Ferro Alloy Plant located at Paloncha in Khammam district of Andhra Pradesh has three smelters of 16.5 MVA capacity each and one smelter of
27.6
MVA capacity .
This plant produces Ferro manganese and silico
manganese
with
a
total
output
capacity of 1,25,000 tonnes per annum.
The manganese ore required is sourced from the States of Madhya Pradesh, Maharashtra and Karnataka. Requisite power is drawn from the Company¶s 82 MW Power Plant located in the same premises. The finished product is dispatched to various steel manufacturers. Exports are effected through Visakhapatnam sea port.
14 | P a g e
Products: High Carbon Ferro Manganese (Spec.) High Carbon Silico Manganese (Spec.) Ferro Silicon (Spec.)
Ferro Alloy Plant (Orissa) The Company¶s second Ferro Alloy Plant located at Kharagprasad village in Dhenkanal district of the State of Orissa, operates two smelters of 22.5 MVA capacity each and produces Ferro chrome
with a total output capacity of 75,000 tonnes per annum.
The chromites ore required is sourced from the country¶s best mines located in the nearby Sukhinda region. The power required is drawn from a 30 MW Captive Power Plant located in the same premises. The finished product is dispatched to stainless steel manufacturers. Exports are effected through Paradip sea port. Product: High Carbon Ferro Chrome (Spec.) NBV's Major Domestic End Users: y y y y y
15 | P a g e
Visakhapatnam Steel Plant Tata Iron & Steel Company Ltd. Essar Steel Ltd. Mukand Ltd. JSW Steel Ltd.
y y y y
Steel Authority of India Ltd. Sun flag Iron & Steel Co. Ltd. Mahindra Ugine Steel Co. Ltd. Shah Alloys Ltd.
Export of Ferro Alloys NBV has built a reputation for consistently high product quality and service and successfully penetrated several intensely competitive international markets like USA, Europe, Gulf, Japan, Korea, Indonesia, etc. The Company's constant thrust to exports has enabled NBFA to establish itself as a leading manufacturer exporter of Ferro alloys from India . The Company is a recognized EXPORT HOUSE and has been receiving Certificate of EXPORT EXCELLENCE from Engineering Export Promotion Council every year since 2000-01. NBV's Major Overseas End Users: y
JFE Steel Corporation
y
Nippon Steel Corporation, Japan
y
Daido Steel, Japan
y
Sumitomo Metal Industries, Japan
y
Kobe Steel, Japan
y
Posco, Korea
y
Seah Besteel Corporation, Korea
y
Changwon Speciality Steel, Korea
y
National Steel & Iron Factory, Saudi Arabia
y
Ahwaz Steel Company, Iran
y
P.T.Krakatau Steel, Indonesia
y
P.T.Ispat Indo, Indonesia
NBV's Overseas Buyers: y
Glencore International A.G., Switzerland
y
Ronly Holdings Ltd., U.K.
y
Marubeni Tetsugen Co. Ltd., Japan
y
Considar Europe, Luxembourg
16 | P a g e
SUGAR & BIO FUELS
The Company operates a modern, energy efficient, 3500 tcd Sugar Plant located at Samalkot in the sugar cane rich belt of coastal Andhra Pradesh and close to Visakhapatnam and Kakinada seaports for exports. The quality of sugar produced is on par with that of refined sugar with 26 to28 ICUMSA colour.
NBV is marketing 1 kg packs of sugar under the brand name´Deccan´ in the retail markets
17 | P a g e
SUGAR PLANT The Company has undertaken extensive cane development by y
Arranging financial assistance to farmers through commercial banks
y
Providing chemicals and farm implements to farmers on subsidy through Cane Development Council
y
Developing rural roads and link roads for easy transportation of cane from farmers' fields to the plant
y
Conducting training classes for the cane growers with the help of scientists from various Agricultural Research Stations
y
Encouraging single bud nursery to reduce seed cost
y
Introducing drip irrigation to conserve water. PVC / HDPE pipes are distributed to farmers for use in new bore wells and laying subsurface irrigation pipelines.
y
Introducing bio control measures to deal with sugar cane borers thus reducing usage of pesticides
y
Supplying enriched bio-earth produced by the Company to reduce usage of chemical fertilizers
y
Improving the organic matter in the soil by encouraging cane farmers to produce and use ermine compost. Subsidy is arranged by the Company through Cane Development Council for vermin compost sheds. The Distillery attached to the Sugar Plant produces 6 million bulk liters per annum of Rectified Spirit which is further processed into Ethanol and Neutral Alcohol.
18 | P a g e
INFRASTRUCTURE A spate of steady growth and strategic diversification has led Nava Bharat to foray into Infrastructure Development. An infrastructure division has been established to usher a new wave of development in this fast-growing industry. In a relatively short time period, a slew of projects have been taken up for implementation.
Special Economic Zone Nava Bharat¶s Infrastructure Division has embarked on a prestigious project ± a Special Economic Zone (SEZ), located in Hyderabad, India. Set across a sprawling backdrop of 250 acres of land - allotted by the Government of Andhra Pradesh - in Mamidpally (near Rajiv Gandhi International Airport), the SEZ is a product specific IT-ITES (Information Technology Information Technology Enabled Services) SEZ. The area has been notified as an SEZ by the Government of India.
Project Implementation The project is being implemented by Brahmani Infratech Private Limited (BIPL), a special purpose vehicle of Nava Bharat Ventures Limited.
Project Features y
Over 4.5 million square feet of world-class built-to-suit, multi-office and serviced office space
y
Over 5.5 million square feet of residential, retail & entertainment as well as social infrastructure
y
A sprawling campus specially landscaped with creeks, water bodies, lawns, etc.
y
Modern architecture that blends well with the natural contours of the area
y
High security
y
High speed communication facilities
y
Generation of employment to at least 45,000 person
19 | P a g e
VISION y
NBVL will be a dependable source of products and services exceeding our customer¶s expectations.
y
NBVL will add best value to our inputs and strive to protect the environment in all our endeavors
VALUES Customer satisfaction has been at the core of all of NBV¶s activities ± and it is primarily achieved through a two-prong strategy. One, to ensure continual improvement of process performance, which in turn enhances quality of end product. And two, to add value at every stage of manufacture - from concept to completion, from raw materials to finished products ± to attain quality conforming to global standards.
20
|Pa ge
QUALITY MANAGEMENT SYSTEM The Quality Management System adopted by NBV's manufacturing plants is certified as per the International Standard ISO 9001-2000.
Carbon/ Sulphur testing with
sugar c olour with spe ctrometer
Lec o A pparat us
5±S The philosophy of organizing and managing workspace and work flow to produce the best results is aptly described by the Japanese technique of 5S. NBV rigorously follows 5S in its plants and processes to enhance workplace excellence, efficiency of operations and optimal utilization of resources. Amongst the various steps taken to ensure this are eliminating waste, improving material flow and reducing process variations.
21
|Pa ge
PRODUCT PROFILE
POWER The Power Division operates in two distinct domains: y
Industrial Power Plants
y
Merchant Power Plants
Industrial Power Plants The Company has set up pit head, coal based Thermal Power Plants in the States of Andhra Pradesh and Orissa in India to supply the power required by its Ferro Alloy Smelters and sell surplus power to utilities. The Power Plants are set up with eco-friendly technology and short gestation periods and are operated at PLFs above 90%. The Company has a team of competent and committed professionals and engineers from the power sector with in-depth experience in construction, operation and maintenance of thermal power plants. Aggregate Capacity: 237 MW
Power Plant (Andhra Pradesh)
Location: Adjacent to NBV¶s Ferro Alloy Plant at Paloncha, Andhra Pradesh Output capacity: 114 MW Power Plant (Orissa)
Location: Adjacent to NBV¶s Ferro Alloy Plant at Khargprasad, Orissa Output capacity: 94 MW
22
|Page
Biomass Power Plants Bagasse, a non-fossil fuel, produced by sugar plants, is fired in a boiler which produces the steam required for generation of power. NBV operates the following BPPs:
20 MW Biomass Power Plant
Merchant Power Plants NBV is setting up, through Special Purpose Vehicles; the following coal fired power plants for sale of entire power generated: y y
23
1 x 150 MW Power Plant each at Paloncha and Dharmavaram in Andhra Pradesh 1 x 64 MW Power Plant at Kharagprasad in Orissa
|Page
Ferro Alloys It is a known fact that the properties of steel originate from its raw materials. That¶s where NBV plays a major role ± it manufactures manganese, silicon and chromium alloys, each a key input to the manufacture of steel. While Manganese and silicon alloys impart strength and hardness and act as powerful deoxidizing agents, Chromium alloys make steel resistant to corrosion and heat.
SUGAR Manufacture of sugar is one of the early diversifications taken up by NBV. A state-of-the-art, energy efficient sugar plant located at Samalkot (in the sugar cane rich belt of coastal Andhra Pradesh) operates with an overall capacity of 3500 tcd and manufactures sugar that is on par with refined sugar in terms of quality, with 26 to 28 ICUMSA colour. The plant is strategically located in close proximity to Visakhapatnam and Kakinada seaports ± this facilitates exports to overseas clientele. In the domestic retail market, NBV markets the sugar produced under the brand name of Deccan. The product is available in 1 kg packs.
INFRASTUCTURE A spate of steady growth and strategic diversification has led Nava Bharat to foray into Infrastructure Development. An infrastructure division has been established to usher a new wave of development in this fast-growing industry. In a relatively short time period, a slew of projects have been taken up for implementation.
24
|Page
Area of Operation:
A journey of exploration and innovation has no destination; it has only milestones. By 2005, NBFA outlined its presence in infrastructure through special purpose vehicles that would focus on Special Economic Zones and Real Estate Development. To represent better the diversified business activities, the name of the company was changed to Nava Bharat Ventures Limited (NBV) in July 2006. NBV spread its wings globally through overseas projects and trading activity controlled by Nava Bharat (Singapore) Pte. Limited, a wholly owned subsidiary of NBV, functioning from Singapore.
25
|Page
INTERNATIONAL OPERATIONS
Nava Bharat (Singapore) Pte. Limited (NBS), a wholly owned subsidiary of Nava Bharat Ventures Limited, is the hub of international operations aimed primarily at
26
y
Investing in mineral resource assets --- thermal coal, manganese and chromite ores
y
Positioning the company to meet the growing demand for energy in Africa and Asia
|Page
OWNERSHIP PATTERN NBV ltd is promoted by Dr. D. Subba Rao, Sri P.Punnaiah and Sri A.S.Chowdhri in 1972, the ownership pattern mainly held by promoter group and public shareholders. Total Shareholding as a % of total number No. of Shares of Shares CateTotal held in Category of Number of gory number dematerialized ShareholderShareholders Code of Shares As a % As a % form (II) (III) (I) (IV) of of (V) 1 (A+B) (A+B+C) (VI) (VII)
(A)
Promoter and Promoter Group
(1)
Indian
(a)
Individuals/ Hindu Undivided Family
(b)
Central Govt. / State Govt(s)
0
(c)
Bodies Corporate
6 16089316
(d)
Financial Institutions/ Banks
0
(e)
Any Other (specify) TRUST
1
Sub-Total
17 13673194
0
0
13673194
0
16089316 0
4973510
4973510
24 34736020
34736020
17.91
|Page
No. of shares (VIII)
As a % (IX)=(VIII)/ (IV)*100
17.91
0
0.00
0.00
0
0.00
21.07
0
0.00
0.00
0.00
0
0.00
6.51
6.51
0
0.00
45.49
0
0.00
0.00
21.07
45.49
(NUMBER OF SHARE OWNED BY PROMOTERS)
27
Shares pledged or otherwise encumbered
B)
PUBLIC SHAREHOLDING3
(1) Institutions
(a) Mutual Funds / UTI
35
4529879
(b)
Financial Institutions / Banks
14
31225
(c)
Central Govt / State Govt(s)
0
(d) Venture Capital Funds (e) Insurance Companies (f)
Foreign Institutional Investors
(g)
Foreign Venture Capital Investors
4524379 5.93
Sub-Total (B)(1)
NA NA
5105
0.04
0.04 NA
0
0
0.00
0.00 NA
NA
0
0
0
0.00
0.00 NA
NA
0
0
0
0.00
0.00 NA
NA
41 13475637 13475637
(h) Any Other (specify)
5.93 NA
17.65
17.65 NA
0
0
0
0.00
0.00 NA
NA
0
0
0
0.00
0.00 NA
NA
90 18036741 18005121
23.62
23.62 NA
NA
NA
(2) Non-institutions (a) Bodies Corporate
514
2460284
2411924 3.22
3.22 NA
NA
(b) Individuals i. Individual shareholders holding nominal share 14434 capital upto Rs. 1 lakh
10035315
7851241
13.14
13.14
NA
NA
ii. Individual shareholders holding nominal share capital in excess of Rs. 1 lakh
68
10139046
8779901
13.28
13.28
NA
NA
9
276631
276631
0.36
0.36 NA
NA
ii. Non Resident Indians 365
656316
584786
0.86
0.86 NA
NA
5
6055
6055
0.01
0.01 NA
NA
51
18260
18260
0.02
0.02 NA
NA
(c) Any Other (specify) i. Directors and Relatives
iii. Trusts iv. Clearing Members
28
Sub-Total (B)(2)
15446 23591907 19928798
30.89
30.89 NA
NA
Total Public Shareholding (B)= (B)(1)+(B)(2)
15536 41628648 37933919
54.51
54.51 NA
NA
|Page
TOTAL (A)+(B)
Shares held by Custodians and against (C) which Depository Receipts have been issued GRAND TOTAL (A)+(B)+(C)
15560 76364668 72669939 100.00 100.00 NA
0
0
0
0.00
0.00 NA
NA
NA
15560 76364668 72669939 100.00 100.00 0 0.00
Competitors Information As Orissa is well known for its natural resources so it attracts number of ferroalloy producer to came to produce ferro-alloy in Orissa. There are many number of ferro alloy producers present in Orissa but the main competitor is IMFA and TATA STELL. IMFA
GROUP
Based in the eastern State of Orissa well known for its rich natural resources, IMFA is India's largest, fully integrated producer of Ferro Alloys with 157 MVA installed furnace capacity, a 108 MW coal-based Captive Power Plant and extensive Chrome Ore mining tracts. In October 2006, Indian Charge Chrome Ltd (ICCL; Estd: 1983) merged with IMFA to create a leader in the field of Ferro Alloys. Today, IMFA produces Ferro Chrome, Ferro Silicon, High Purity Ferro Silicon, and Ferro Silicon Magnesium for the domestic market as well as major international markets. IMFA is unique from a quality perspective in that it has multi-product & multi-location ISO 9001 certification covering the entire range of its activities.
29
|Page
Production y
Ferro Chrome
y
Ferro Silicon
y
Ferro Silicon Magnesium
y
Electricity
TATA STEEL
Established in 1958, the Ferro Alloy Plant at Joda is a landmark of progress and growth in Orissa and is one of the oldest plants in India. It is the first plant in Asia to have SA 8000 certification. The Ferro Alloy plant at Bamnipal, has been recognised as the first successful disinvestment of the Government of Orissa. Currently, production at the plant is above the rated capacity of 50,000 tonnes per annum. A modernisation-cum- expansion plan for the unit is on the anvil that would involve an invstment of Rs. 310 crores and would have another 50,000 tonnes of Ferro Chrome unit and a 60 MW captive power plant. In essence, the division is in the forefront of the Tata Steel Group¶s foray into the global ferro alloys and minerals business, and is the market leader in Ferro Chrome in India and is among the top six chrome alloy producers in the world. FAMD is today, the only Indian Ferro Alloy player to build a long-term relationship with the most reputed Steel companies in the world.
INFRASTRUCTURE FACILITY The Ferro Alloy plant along with existing Captive Power Plant (CPP) covers an area of 119.39 acres. The planned expansion (60 Acres) is envisaged to be taken up within the existing plant premises of 179.39 acre and additional 36.9 acres of land is under proposal of acquisition for ash disposal. NBVL has already acquired the land which has been converted to industrial land. Ash mound already exists over an area of 47.49 acre at Nimidha, Dhenkanal at a distance of 7.5 km from the plant site. Keeping in view of additional 1X64 MW proposed power plant, additional 36.90 acres 30
|Pa ge
land adjacent to ash mound site is on the final stage of acquisition. Hence a total of 84.39 acre will be available for total 158 MW Power plant. NBVL provide the quarter to their 171 executive employee and hostel for trainee employee with 24hr water and electricity faculty.
Boiler Details The installed capacity of power is 30 MW. Power plant consists of 2 boilers, one turbo generator of 30 MW capacities, Coal Handling Plant, DM Water Plant and auxiliaries. The boilers have three major cycles i.e. a) Feed Water Cycle, b) Fuel System, c) Air and Flue Gas System.
Achievement/Award Diverse business activities with a single-minded focus. Rapid growth with a steady ascent in the ranks. Strict quality management with a radical approach towards innovation. It is such counter challenging yet convergent approach that has distinguished Nava Bharat Ventures from other organizations.
Over the past three decades, the company has won numerous accolades, each a testimony to its all-round performance in energy management, safety, work place excellence, environment protection, exports, productivity, labour welfare, industrial relations, etc.
31
|Pa ge
National Award for Excellence in Energy Management (2007, 2008, 2009)
32
|Page
5-S Excellence Award (2007)
33
|Page
Pollution Control Excellence Award (2007)
34
|Page
Best Performance in Safety and Environment Management (2007)
35
y
Best Workers¶ Welfare, (1981, 1987, 1993, 2000)
y
Best Industrial Productivity in the State (2002)
y
Best Environmental Improvement (1993)
y
Silver Trophy for Outstanding Export Performance (2009)
|Page
WORK FLOW MODEL (END TO END)
The major function of the internal logistics of the organization is of feeding of raw material to all furnaces. Case study of a ferro alloys plant has been considered .Daily feeding of raw material to different furnaces is about 1000 metric tonnes.
36
|Page
ORGANISATIONAL STRUCTURE BOARD OF DIRECTOR
37
y
D. Ashok, Chairman
y
P.T. Vikram Prasad , Managing Director
y
D. Ashwin, Director and CEO Nava Bharat (Singapore) Pte. Limited
y
C.V. Durga Prasad, Director - Business Development
y
G.R.K. Prasad, Director ± Finance & Corporate Affairs
y
Dr. E.R.C. Shekar , Director
y
Dr. M.V.G. Rao, Director
y
K. Balarama Reddi, Director
y
Dr. D.N. Rao, Director
y
S.V. Satyanarayana, IDBI Nominee Director
|Page
Department function, role & responsibility In NBVL ferro alloy unit of Orissa has four main department names as y
Purchase dept
y
Production dept
y
Sales dept
y
Personnel dept
FUNCTIONS OF A PURCHASE DEPARTMENT y
Obtaining and analyzing quotations of vendors/suppliers. Taking the quotation from different vendor and finding the three best
quotation among of these with all testing
certificate
y
Interview representatives and correspondence. Identify the representative of the supplier taking the current material status and also state level.
y
Deciding best buying terms and conditions. Deciding the payment terms and minimum time required for supply the material.
y
Negotiating and checking contracts. After deciding vendor as the company terms finding best rate with the immediate payment also cash discount on the immediate payment. Second thing deciding the credit period as company standard.
y
Scheduling orders and following up-After issuing the purchase order, taking current status of immediate supply of material and required time for balance material. To make sure that material should be there as per decided schedule.
y
Work with finance department to obtain discount, matching invoices, verify receipt, purchase journal entry, passing of invoices for payment and settlement of accounts
y
38
Other activities like assisting with preparation of material expenditure/purchasing budget.
|Page
FUNCTIONS OF A PRODUCTION DEPARTMENT 1. RIGHT QUALITY The quality of product is established based upon the customers¶ needs. The right quality is not necessarily best quality. It is determined by the cost of the product and the technical characteristics as suited to the specific requirements. 2. RIGHT QUANTITY
The manufacturing organization should produce the products in right number. If they are produced in excess of demand the capital will block up in the form of inventory and if the quantity is produced in short of demand, leads to shortage of products.
3. RIGHT TIME Timeliness of delivery is one of the important parameter to judge the effectiveness of production department. So, the production department has to make the optimal utilization of input resources to achieve its objective.
4. RIGHT MANUFACTURING COST Manufacturing costs are established before the product is actually manufactured. Hence, all attempts should be made to produce the products at pre-established cost, so as to reduce the variation between actual and the standard (pre-established) cost.
39
|Page
FUNCTIONS OF A SALES DEPARTMENT The main function of a sales department is attract and retain customers. Many moving parts are tied to this but the number one objective is to attract and retain customers. That said, sales activities need to been co-ordinated i.e., to meet the customer demand with appropriate supply. The next is to increase the sales volume considering a particular period of time. Then to find appropriate persons/ agencies to carry out the sales activities. To help marketing department in meeting the sales volume for casted by then. To give motivation by appropriate means to the sales persons and to give appropriate training to them in carrying out the sales activities successfully.. they analyze the demands of markets. they study the consumer's psychology, study market fluctuations, prepare sale budgets, explore new markets and the process begins again attract and retain customers.
40
|Pa ge
FUNCTIONS OF A HR DEPARTMENT
1) Recruiting: Selects the right talent and transitions it into the organization. Requires the ability to sell. They need to be cheerleaders for the company. 2) Training: Develops employees to meet the short and long-term needs of the business. Requires the ability to teach. They need to be performers. 3) Employee Relations: Handles and mediates grievances, disputes, claims and complaints. Requires the ability to be calm. They need to be counselors. 4) Compensation: Structures pay strategically to reinforce the behaviors needed for the business to succeed and the organization to move forward. 5) Payroll: Administers paychecks and oversees all appropriate deductions. Requires the ability to focus on details
41
|Pa ge
FUTURE GROWTH AND PROSPECTS NBVL ferro-alloys industry is an important player in the international market. According to NBVL on an average, about 55 to 60% production is exported. Presently, the boom in World Steel Production drove demand mainly for the bulk alloys of manganese and silicon and alloys of micro-alloying elements, vanadium and niobium. The rise in stainless steel production resulted in increase in demand for alloys of chromium, nickel and molybdenum. Indian ferro-alloys industry has a great future and it can compete with any country. India has advantage of having highly qualified and experienced technical personnel supported by skilled labour force. There is a need to encourage Indian ferro-alloys industry for setting up captive power plants and also allot coal linkages for the same. As per industry sources, the recent global financial meltdown has hit the ferro-alloys industrial scenario badly. Ferro-alloys industry can grow provided innovations are made in the process technology and plant equipment design, along with frequent changes in product mix, to be more cost-effective.
42
|Page
SWOT ANALYSIS
43
|Page
STRENGTH¶S NBVL is only the integrated steel plant having a good product mix. NBVL is considered as a profit center along with other plants. In the FY2009 it makes profit of 500cr(aprox)
NBVL produces power from its thermal power plant(94MW) which is used as power for ferro alloy plant(50MW),rest power they sell to Orissa grid.
Develop and manage the proposed plant in an environment friendly manner according to the regulatory requirements and best industrial practices, whilst ensuring economic viability.
The computer networking system used by NBVL is one of the best systems in the industry; this has made the work easier. They implemented the SAP system to do the work more effectively.
NBVL production unites are ISO: 9001, ISO: 14001 certified which helps increasing customer confidence, and improve efficiency effectiveness.
Super Rank 20 and Rank 297 among 1000 Corporate Giants in India by Net Sales, accorded by Business Standard magazine - February 2010
WEAKNESS NBVL don¶t have own mine so for coal and raw material they have to dependent on OMC (Orissa Mining Corporation) & MCL (Mahanadi coal field ltd).
For selling of finished goods (alloys) NBVL have to spent a lot for transportation because most of purchaser from overseas and the goods are send by sea root and nearest all equipped is Visakhapatnam port (500km far)
Heavily dependent on import of raw materials. It has high cost structure when compared to its peers like TATA steel, IMFA. NBVL does not compromise much on the reserved price fixed for the products due to which many materials remain blocked and day by day there value depreciate.
NBVL don¶t have many ware house in other state for distribution of material.
44
|Page
OPPORTUNITIES
In this world of globalization, there is a huge demand of steel for the nation infrastructure development.
Increasing demand of steel at the international level has raised hopes for the export of ferro alloys from India.
Because of economic boom, many small-scale industries have opened now a day, so for which small industries demand more steel which means the steel maker need more ferro alloys for producing the steel.
NBVL has an opportunity to become self ±sufficient by procuring the local mines
THREATS
Due to open economy NBVL is facing more competitors in their marketing fields like TATA, IMFA, ESSAR, ARATI, ROHIT FERRO ALLOYS etc, who provide goods at a lower cost.
MCL is not providing coals in regular basis for which some time the production of ferro alloy hampered. The use of plastic and aluminums as substitute for steel is posing a major threat for ferro
alloy industry.
45
|Page
Learning experience
The learning experience during the in plant training was practical oriented. Mostly all the concept and theories which I studied in the class were applicable practically. The overall study of the organization reveals that the company has tremendously grown since its incorporation from 1972. There are two units operating individually to meet the customers and market requirements. It is one of the leading manufacturers of ferro-alloys in India. It also has global presence in Africa and Asia. The manufacturing capacity is effectively utilized. The company is committed to a policy of fully satisfying mutually agreed customers requirements with good team work and service excellence. The results followed ± NBFA emerged as one of the largest manufacturer exporters of ferro alloys in India. The company has effective human resource management where the employees are given excellent packages, incentives and extensive care is taken by providing facilities such as medical facility, education facility for the employee¶s family members. I had a great time working on the project as it gives insight in to the working environment of the organization. The training has exposed me to many facts of an organization and also helped me to gain practical knowledge, which will go a long way in the horizon of my career
46
|Page
FINDINGS y
NBVL limited was established in the year 1972. It¶s incorporated in India as well as globally.
y
NBVL emerged as one of the largest manufacturer exporters of Ferro alloys in India.
y
The production system is based on the new technology. The company updates its machinery to meet its customer demands.
47
y
The company is effectively utilizing its production capacity effectively.
y
The main products are ferro-alloy , power and sugar.
y
The company is certified ISO: 9001:2000 & ISO:14001 .
y
NBVL uses it manpower and machinery effectively.
|Page
SUGGESTION y
NBVL should have its own mines for raw materials.
y
Tied up with MCL for supply of coal on regular basis, which is main source of generating power.
y
y
Open new ware house in other state for supply of finished goods more effectively. NBVL have to focus more on domestic user of ferro-alloy by the result of which the turnover will increase.
y
48
NBVL should develop its sales promotion strategy to attract more customers.
|Page
CONCLUSION
. The objective of the Industrial Training is it helps to learn Industrial activities and it helps to gain practical knowledge about various functions of the department. It provide Work procedural for all departmental areas and this training helps in
learning the Fundamental values of the
Company and this Industrial Training helps to develop a sense of growth in learning and this training provides information for future needs in all areas of the Organization. As I understood SIP is a great opportunity of learning of every intern and I¶m very lucky getting this opportunity at Nava Bharat ventures Ltd. For SIP, I got my career aim so that¶s my best achievement for SIP. And as we know during there four weeks of exposure to the industry we can impress the host organization with our hard work, Sincerity, Knowledge and ethics.
49
|Page
BIBLIOGRAPHY Books y
Phillip Kotlar, Marketing Management, Pearson education, New Delhi, Seven Indian print 2005
y
Upendra Kachru, Production and Operation Management, Excel book
Internet References
50
y
http://www.nbventures.co.in
y
http://www.metaljunction.com
y
http://www.thehindubusinessline.com
y
http://www.scribd.com
y
http://www.wikipedia.com
|Pa ge
51
|Pa ge
