The Steel Authority of India Limited also known as SAIL is an Free Essay Example

The Steel Authority of India Limited also known as SAIL is an Indian government owned steel making company, formed in 1973, headquarters situated in New Delhi, India. Hindustan Steel Ltd., its predecessor, was founded on 19th January 1954, around 65 years ago and SAIL was the successor as a holding company and supervisory agency for the iron and steel industry in India which were in the public sector. It owns and controls over five integrated steel plants, namely Bokaro, Durgapur, Bhilai, Burnpur and Rourkela and three other special steel plants, namely Durgapur, Salem and Bhadravathi, located in the eastern and central region on India.

It also has a Research and Development centre for iron and steel which is a centre for engineering in Ranchi, Jharkand.History:Initially SAIL was called Hindustan Steel Limited(HSL) when it was incorporated in the year 1954 some years after the independence when India was building up, trying to recover and develop as the steel sector was to propel economic growth.

HSL was initially set up as a wholly state owned company responsible to control only one plant that was in Rourkela because the Iron and Steel Ministry was doing the work at Bhilai in Madhya Pradesh and Durgapur in West Bengal. But from the year 1957, the control and managing of these two plants were given or rather transferred to HSL. The HSL took over the operation of all the iron ore mines supplying its plants, all three of which had been positioned to take advantage of existing materials. This policy of positioning steel production near raw materials sources reflected the small and discrete nature of the domestic market for steel of the earlier times and contrasted with the market-related location policies of companies in more advanced steel-producing countries, such as the United States.

The HSL was also dealing with its another venture which was an Alloy Steel project and its job was not only restricted to steel production but also the procurement of raw materials.A new steel plant was founded in Bokaro on 29th January 1964 with the name of Bokaro Steel Limited, which was one of the steel plants of SAIL, so as to construct and operate an iron and steel plant at Bokaro and it also operated in fertilizer plant in Rourkela. The 1 MT phases of Bhilai and Rourkela plants were completed by the end of 1961 and the 1 MT phase of Durgapur plant was completed in the beginning of the year 1962. Also, the crude steel production of HSL went up from 1.58 MT to 1.6 MT till 1960 and so on the phases of different steel plants kept on growing with the upcoming years. Nevertheless, with the accomplishment of the 2.5 MT phase at Bhilai, 1.5 MT at Rourkela, and 1.6 MT at Durgapur, the total steel production capacity of the HSL, by the end of 1973, was raised to 4 MT. In order to expand and diversify the growth of HSL, along with dealing with a lot of iron and steel plants, it became quite clear that public sector iron and steel production would require some new form of synchronization to avoid duplication, or misinterpretation and to channel resources more effectively. The SAIL was established for the purpose of functioning as a holding company along the lines of similar but older bodies in Italy and Sweden. The new organization was placed on a secure balance when the Indian Iron & Steel Company was nationalized, giving SAIL control of all iron and steel production apart from a number of small scale units dealing in the same business.Organization Structure and DetailDeveloped in 2001, A 50:50 joint undertaking between Steel Authority of India Ltd. (SAIL) and Damodar Valley Corporation (DVC) and is busy with power and steam age and supplies power and steam (at various loads) to SAIL’s Bokaro Steel Plant (BSL) located at Bokaro for social occasion the methodology essential of BSL. ORGANIZATIONAL ENVIRONMENTIMPACTS OF LIBERALIZATION- Iron and steel industry being expelled from the rundown of enterprises saved for the open part and numerous new players like TATA entered the market making rivalry harder. Outside value speculation was expanded to 74%, costs were being deregulated which prompted the opportunity of business sectors to choose their very own cost. HUMAN RESOURCE MANAGEMENT SYSTEM A best in class of HR the executives framework which included “HR Planning Model for Modernization”, “Execution Management System”, ‘Market direction through Internal Customer Satisfaction’ and so on. Extension AND MODERNIZATION Improving creation limit and piece of the pie, world class innovation and items, option of significant worth included items and upgraded contamination control measures and natural preservation. Authoritative ENVIRONMENT Impacts OF LIBERALIZATION- Iron and steel industry being expelled from the rundown of ventures held for the open division and numerous new players like TATA entered the market making rivalry harder. Remote value venture was expanded to 74%, costs were being deregulated which prompted the opportunity of business sectors to choose their very own cost. Cargo burdens to states situated close steel plants because of expulsion of Freight Equalization Scheme. HUMAN RESOURCE MANAGEMENT SYSTEM A best in class of HR the board framework which included “HR Planning Model for Modernization”, “Execution Management System”, ‘Market direction through Internal Customer Satisfaction’ and so forth. Extension AND MODERNIZATION Improving creation limit and piece of the pie, world class innovation and items, option of significant worth included items and upgraded contamination control measures and natural protection. Hierarchical EFFECTIVENESS Outer RESOURCES – SAIL has India’s second biggest mining system, so lower cost of material. The measure of limit usage accomplished was 118% – SAIL has 35% of piece of the pie which is the biggest % of piece of the pie. – Stock costs has expanded by 22% and deals turnover by 16%. – SAIL by righteousness of its ‘Navratna’ status appreciates huge operational and budgetary self-rule. Interior SYSTEM – Reduced basic leadership time because of adequacy announcing structure inside the association. – World class innovation and item development because of modernization and extension. – In house research communities for building and the board preparing. Specialized APPROACH – Increased nature of various types of iron and steel items. – Reduced vitality utilization. – Enhanced contamination control measures and ecological preservation. – Reduced expense of generation because of low coke rate. STRUCTURE OF THE ORGANIZATION Clarification – There are 6 gathering capacities inside SAIL every one of which is being going by a Director and the Chairman of the top managerial staff is CEO also. – All the capacities comprises of sub-capacities which are each headed by an Additional Director who report to the executive of that particular capacity. – All the tasks in a plant is being overseen by the overseeing executive of that plant who have full operational opportunity and report to the CEO straightforwardly. – There are different capacities inside the plant every one of which is cared for by a General Manager and he straightforwardly reports to the plant MD. In any case, a few capacities like HR, Finance and so on are identified with the gathering elements of the association and accordingly have a practical answering to the Director of those capacities also. – SAIL likewise have their own Central Marketing Organization (CMO) an administration unit who take care of the showcasing, deals and conveyance. – Overall the hierarchical structure which comprises of both practical and multi divisional methodology is extremely proper for an assembling firm of such scale.

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