SAIL an overview: Glimpses of new India

During struggle for independence, Pt. Jawaharlal Nehru, our first Prime Minister, had a very clear vision about the role of Steel in the development of our country.  The reason behind it that it was well understood by great leaders of our country that the steel sector will be one of the most important factor for rapid economic development of the nation.

FORMATION AND GROWTH

Although TATA Iron & Steel Company (TISCO) has been establishment in 1907 marking the beginning of Indian Steel Industry followed by Indian Steel Co. (1918), they were too small to meet the development requirements of Iron and Steel in such a big country like Ours. Therefore, in the 1st industrial Policy Resolution of the Govt. Soon after independence, Govt. decided to establish Steel Plants in Public Sector only.

However, work could be started at fasted pace only in 1954 when “Hindustan Steel Ltd.”, was formed on 19th January 1954 and three Steel Plants of 1 MT capacity each were established with provision of further expansion at Bhilai, Rourkela and Durgapur with assistance from USSR, West Germany and U.K. respectively. Later on in 1965 construction of another steel plant at Bokaro (BIHAR) was also undertaken with indigenous technology.

The committee of public undertaking of the fifth Lok Sabha was the first parliamentary committee to undertake a review of the quest up a holding company for steel. It was first considered in the Department of Steel in 1971 with the following two objects –

  1. Rapid growth of the Industrial Sector of the economy with the state acting as a leading agent of the growth process and
  2. Ability of the government to direct investment into areas which are strategic from the point of view of future development.

To improve the functioning of Steel Industry, Govt. decided to form a holding company during 1972, which was named as Steel Authority of India Ltd., (SAIL) and was incorporated on January 24, 1973 with an authorised capital of Rs. 2000 crores.

SAIL was formed by the registration of a company under the companies Act and not by the Act of Parliament, Govt., decided to abandon the holding company concept in 1978 and a bill was presented to the Lok Sabha. Accordingly, SAIL was again recognized in the following manner.

Hindustan Steel Ltd., Bokaro Steel Ltd., Salem Steel Ltd., SAIL International Ltd., Bhilai Ispat Ltd., Rourkela Ispat Ltd., Durgapur Mishra Ispat Ltd., wholly owned subsidiaries of SAIL merged into it and started functioning as Units of SAIL.

MECON, HSCL and NMDC beom independent under Companies and started functioning under Deptt. of Steel. However, Kiriburu and Meghatuburu Iron Ore Mines were attached with BSL as their Captive Mines.

Bharat Refactories Ltd., also became independent under the Dept. of Steel and refractory units also came under them.

PROFILE

Steel Authority of India Limited (SAIL) is India’s largest and one of the world’s leading steel producers with a turnover of over Rs. 15,500 crore.

SAIL’s vast portfolio of long, flat and tubular products is marketed within and outside India but its Centre Marketing Organisation (CMO) and the International Trade Division (ITD) respectively. By-products and chemicals are marketed directly by the respective steel plants. SAIL’s Raw Materials Division, headquartered at Kolkata, manages India’s second largest mines network.

SAIL’s product-mix has been reoriented to keep pace with market demand. Higher availability of special grade products like API grade HR Coils/ Plates/ Pipes, HR Coils for cold reducers, etc., have enabled SAIL to maintain and achieve larger market share in value added segments. With a market driven pricing system, key customers are provided special customer services and there is increased product focus and constant review of distribution channels.

Looking beyond the national boundaries, SAIL’s products have been able to carve out a place for themselves in the international steel market. SAIL has own recognition as a major foreign exchange earner for the country.

 

’” New business with the potential to deliver breakthrough growth for established companies face stiff headwinds well after launch. So, emphasis must shift; from idea to execution and from leadership excellence to organizational excellence. However, as T.S.Eliot, banker and poet, wrote “Between the idea/ And the reality … Falls the shadow” – prosaically the gap between theory and practice.
– (Harvard Business Review May 05.)

We live in an age in which communication between people is essential to achieving our shared goals of development and peaceful consistence. New innovation in information and communication technologies has increased exponentially our capacity to connect with each other. It is up to us to use to harness the potential of these technologies in our work to extend the benefits of education, health care, trade and environmental protection to all . (FROM UN SECRETARY GENERAL MR. KOFI ANAN ON THE OCCASION OF WORLD TELECOM DAY 2005 MAY, 17).

Human communication has always been a combination of intellect and emotion – a characteristic that helps to define our shared humanity. Our information society has a way of reminding us of this reality, often in a dramatic fashion.

Looking ahead to Tunis, the true test of an equitable information society will be the extent to which today’s powerful knowledge-based communication tools are able to connect different people. (Mr. Yoshio UTSUMI – Secretary- General (International Telecommunication Union).

Bhilai Steel Plant is rightly considered as the jewel in the crown of SAIL. This position is not merely because of the efforts in the field of production, productivity and quality of the product but also due to good communication system in the plant. [S.K. Jain, GM I/c (Works)] [On the occasion of World Telecom Day, 17th May, 2005, a seminar in the assembly hall of BTI, 4.05PM.]

“I am happy to mention that in the recent past Bhilai Steel Plant has created huge infrastructure in the area of ICT. Many new initiatives like Enterprise Resource Planning (ERP), Manufacturing Execution System (MES) and Knowledge Management (KM) are being implemented to transform BSP into a futuristic organization. R.P.Singh, MD, BSP (Souvenir, world Telecom Day, Bhilai, 17th May, 2005).

Source:

“Bhilai and other great project in India are being built with the hunger of the country. The reason why we carry this burden today is the hope that tomorrow we may be aid of a burden………..”

– Pt. Jawahar lal Nehru

 

“…………. As I travel in the country and see such project that picture of new India forms before me. I shall not be able to see the whole of the new India but I am begining to see the glimpse of it and even that makes me happy ……”

– Pt. Jawahar lal Nehru

“4” core values of BSP

  1. Customer Satisfaction
  2. Concern for People
  3. Consistent Profitability
  4. Commitment of excellence

Seven C’s of “SAIL”

  1. Consistent Quality
  2. Committed Delivery
  3. Customized Products
  4. Contemporary Products
  5. Competitive Price
  6. Complaint Settlement
  7. Culture of Customer Service

PRESENT STATUS :

Thus, SAIL, at present, is having capacity of 10.9 MT of crude steel through its five integrated Steel Plants, at Bhilai, Bokaro, Durgapur and Rourkela with a turnover of around Rs. 19207 crors. Two special steel plants at Durgapur and Salem produce a wide range of alloy and special steels.

MARKETING:

Marketing of the Long, Flat & Tubular products from these plants is marketed through a country wide distribution network consisting of a chain of Stock Yards and distribution centres in India and abroad with “CENTRAL MARKETING ORGANISATION – CMO) and International Trade Division (ITD). Bye products are marketed directly by respective steel.

RESEARCH AND DEVELOPMENT :

To develop new technologies for the steel industry and achieve world standard in steel. SAIL has a well equipped Research and Development Centre for Iron and Steel :

  • Research and Development Centre for Iron & Steel – RDCIS
  • Centre for engineering & Technology – CET
  • Management Training Institute – MTI
  • SAIL Safety organisation – SAIL Consultancy Division

– SAILCON

 SAIL’s VISION STATEMENT:

Achieve market leadership and prosper in business through satisfaction of customer needs by continual improvement in quality,cost and delivery of products and services.

CORE VALUES OF SAIL

  •  Customer Satisfaction
  • Concern for People
  • Consistent Profitability
  • Commitment of Excellence

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