Industry Analysis - SCHM

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Introduction

The iron and steel industry in India is among the most important industries within the
country. India surpassed Japan as the second top steel producer in January 2019.
The growth in the Indian steel sector has been driven by the domestic availability of raw
materials such as iron ore and cost-effective labor. Consequently, the steel sector has been
a major contributor to India’s manufacturing output.
The Indian steel industry is modern with state-of-the-art steel mills. It has always strived
for continuous modernization of older plants and up-gradation to higher energy efficiency
levels.
The Indian steel industry is classified into three categories - major producers, main
producers, and secondary producers.
SAIL
Steel Authority of India Limited (SAIL) is a government-owned steel producer based in
New Delhi, India. It is under the ownership of the Ministry of Steel, Government of India.

VISION OF SAIL
To be a respected world-class corporation and the leader in the Indian steel business in
quality, productivity, profitability, and customer satisfaction.
SAIL operates and owns five integrated steel plants at Bhilai, Rourkela, Durgapur, Bokaro,
and Burnpur (Asansol) and three special steel plants at Salem, Durgapur, and Bhadravathi.
It also owns a Ferro Alloy plant at Chandrapur. As a part of its global ambition, the
company is undergoing a massive expansion
SAIL manufactures and sells a broad range of steel products, including hot and cold rolled
sheets and coils, galvanized sheets, electrical sheets, structural, railway products, plates,
bars and rods, stainless steel, and other alloy steels. SAIL produces iron and steel at five
integrated plants and three special steel plants, located principally in the eastern and
central regions of India and situated close to domestic sources of raw materials, including
the
Company's iron ore, limestone, and dolomite mines. The company has the distinction of
being India's second-largest producer of iron ore and of having the country's second-
largest mines network. This gives SAIL a competitive edge in terms of captive availability of
iron ore, limestone, and dolomite which are inputs for steel making.

STRATEGY:
Responsive supply chain

Because it adjusts and responds to changing client requirements, the responsive supply
chain is also known as the Agile supply chain. In other words, we may argue that supply
and demand are in sync. Order fill accuracy, scalable delivery, consistent communication,
and customer satisfaction are all part of the responsive supply chain.
Steel is designed in this business according to customer needs and industry standards, with
regular communication with customers at each stage of the manufacturing process. As a
result, this industry might be described as having a responsive supply chain.
SUPPLY CHAIN NETWORK:

The company source the following material for the process:


The supply flow of the process is given below, In SAIL it gets most of its raw material form
its own mine, which is located near the steel plant, in order to reduce the time taken during
supply chain. Most of its raw material like iron ore, dolomite, limestone, coal etc. The
process flow diagram shows the process flow of Bhilai steel plant which is in Chhattisgarh.
The steel plant gets most of its raw material from Rajhara mine, and few parts of India as
well as in other countries. Raw material like iron ore, dolomite and limestone are acquired
from Rajhara mines and other mines located in India. The coal which is used to burn the
furnace is brought mostly in countries like Australia, United states, and some parts in India.
About 70% of the coals are imported from Australia and few percent are obtained from
Neyveli etc.
The flow of process is like raw material like iron ore which is obtained from the mines like
Nandhini mines which is for limestone, Rowghat mines, Rajhara mines, Dalli mines for iron
core and Hirri Mines for dolomite are shipped and stored before using for the production.
The raw material like limestone, dolomite, iron ore fines and coke breeze which is obtained
from coke oven batteries are poured in the sinter plant and the end product sinter is mixed
with iron ore lumps, pellets and coke are mixed and poured into the blast furnace. The blast
furnace is heated by preheated gas which blows from the bottom. The waste gas that comes
from the furnace is used to produce electricity. The raw gas coming from the furnace is
passed through axial cyclone and then the gas is cleaned by the Scrubber, then the cleaned
gas coming from the scrubber is passed through the turbine which is used to produce
electricity. The electricity produced from the turbine is given to the BF gas Plant network.
The hot metal which comes out form the blast furnace enters the steel melting shop where
the hot metal is melted and then it is send to the stripper yard. Then the steel is passed
through the blowing and billet mill and thus from there the steel will flow to the section
according to the recruitment. The final product of the Bhilai Steel plant are the Billets, wire
rod and rail & structural. Then the final product is stored in the inventory and shipped to
the customer.
Inventory Performance:
 The time taken to hold the inventory is 2 days.

 The inventory turnover in days is 5 days.


 The transit time from the company to the distributers is 30 days.
 The Inventory turnover ratio for distributors is 20-30 days.

Sustainability:
In its endeavor to strengthen environment management and maintain clean and
sustainable environment in and around its plants, mines & other units are committed to:

• Protect the environment by integrating sound environmental practices for control


and prevention of pollution from all its activities.
• Promoting innovative environment-friendly processes and products.
• Integrate principle of “reduce, recover, recycle and reuse” in its operations for
conservation of natural resources, including water, to ensure sustainable future.
• Continuously monitor emissions, discharges and ambient air quality and uplink with
SPCB and CPCB portals for self-regulation of environmental deviations, if any
• Contribute towards mitigation of climate change through adoption of measures to
reduce emission of greenhouse gases, enhancing green coverage, adopting energy
efficient technologies, enhancing use of green energy.
• Comply with legal and other requirements pertaining to the environment, forests,
and wildlife and to go beyond.
• Communicate environmental performance to all stakeholders through annual
report, Board report, Corporate Sustainability Report and all such means from time-
to-time
• Promoting environmentally responsible behavior amongst all stakeholders.

Environmental Management:
SAIL plants and units are carrying out all its operations intending to promote clean, green,
and sustainable growth. This commitment of SAIL reflects in the Corporate Environmental
Policy, which advocates to “Integrate sound environmental practices in all its activities”
and to “Contribute towards mitigation of climate change through the adoption of cleaner
and energy-efficient technologies.” SAIL has adopted the latest environment friendly
technologies and implemented robust environment management systems. SAIL has
foreseen and identified key environmental risks and their mitigation strategies, which are
appended below:

Environmental risks Mitigation strategies

Increased global concern for climate change Regular adoption of clean technologies to
prompting adoption of challenging targets by reduce CO2 emissions
the Regulators
Operational and Financial risk to the industry Venturing in environmental protection
in form of carbon taxes, emission caps etc. measures and in the process of fixing up
internal carbon price
Increasing quantity of waste requiring Developing strategies for proper handling,
proper management and disposal recycling, and reuse of waste
Deteriorating air and water quality because Compliance with the norms as well as
of increasing concentration of industries in preparing for beyond compliance scenario
the vicinity

To provide a clean and green environment, SAIL reduces environmental footprint through
efficient operation of its pollution control facilities. All the plants and units put its sincere
efforts towards regular maintenance and consistent operation of pollution control
equipment/ facilities. As a result, particulate matter emission was limited to 0.63 kg/tcs in
the year 2020-21. Emission of SO2 is curbed through use of low Sulphur coal and
desulphurized coke oven gas. For controlling NOx emission, specially designed burners are
installed along with implementation of some process related changes.
Reduction of carbon footprint:
India committed to reduce the emission intensity of its GDP by 33 to 35 percent from 2005
level by 2030. Accordingly, SAIL has fixed up a target of 2.30 T of CO2 emission per ton of
crude steel production by 2030.

SAIL has achieved around 18% CO2 emission reduction during 2020-21 from 2005 level by
adopting an array of clean technologies over the years. The specific CO2 emission during
2020-21 was 2.55 T/tcs.
Water Conservation Measures:
The Company’s environmental policy emphasizes to integrate principle of “reduce, recover,
recycle and reuse” in its operations for conservation of natural resources, including water,
to ensure sustainable future and for continual improvement of environmental performance
by setting challenging targets, transparent reporting system and robust review mechanism.
The setting of target for water consumption is part of the Company’s annual business plan.
All the SAIL plants except CFP draw fresh water required for industrial use from surface
water sources, primarily perennial rivers, because they are located strategically to ensure
availability of surface water. No water was drawn from the areas with water stress. With
the structured management approach, awareness and technological intervention, SAIL has
been able to provide better water resources for industrial as well as human use within its
operations.
Following initiatives for water conservation are adopted across SAIL plants and units:

• Awareness campaigning
• Revamping of localized recirculation systems
• Water auditing by third party
• Online monitoring of quality and quantity of effluent discharged from shops as well
as outfalls
• Rainwater harvesting schemes
• State-of-the-art effluent treatment plants in upcoming units

SAIL has achieved more than 10% reduction in Specific Water Consumption in last five
years. This bears the testimony of the company’s efforts towards efficient water
management, resulting in protection of precious environmental resources.

Waste - water management:


Regular efforts are being made to reuse and recycle the treated effluent to the maximum
extent possible, to achieve minimum effluent discharge and to minimize pollution load on
the discharged water. SAIL always shows its commitment to strictly monitor the effluent
discharged from its operations and treat the water properly, so that the quality of water
conforms to the applicable standards specified by the regulatory agencies. online effluent
quality monitoring systems have been installed at the plants and these systems are
uplinked with the servers at the State Pollution Control Boards and Central Pollution
Control Board. Across SAIL plants, actions are taken to achieve the long-term goal of “Zero
Liquid Discharge” through adequate treatment and recycling of effluent being discharged
through the outfalls at the plant boundary. All the SAIL plants have been pursuing different
schemes for achieving this goal on mission mode and schemes are at various stages of
implementation.

Achieving Business Agility Through SAP


SAP SE will be made web-enabled soon. On the surface, this means that anyone can use the
Internet to access their SAP SE. However, the repercussions are enormous, as it would
result in information being shared with enterprise accounts and major customers.
• Phase I - To Extend SAP in Works with FI, CO, MM, PP & QM
• Phase II - To implement SAP modules such as Asset Management & Budget
management sub-modules of FICO, Plant maintenance, Human Resources,
Production Optimizer (such as SAP APO)

• Phase III - SEM (Strategic Enterprise Management)


Soon, the company wants to implement the SAP Customer Relationship Management
system to improve its customer relationships and achieve its goal of becoming the most
efficient and competitive company in their market.
Best Practices:

Waste Management: A tool for circular money


Steel is an eco-friendly material with infinite recyclability. By this way it can sustain
resource circulation. On other hand, solid wastes like mill scale, flue dust, BF & BOF slag
and waste refractory bricks etc. are generated during production of steel. The proper reuse
and recycling of the solid wastes generated in steel manufacturing process is meeting the
demand of a potential resource for fulfilling growing shortage of energy and materials. SAIL
plants and mines believes in the 4R’s Principle i.e., Reduce, Recover, Recycle and Reuse and
applies it across all the operations to improve upon sustainability of the company.
Management of solid wastes in the company is aimed to extract maximum practical
benefits from waste products and to generate minimum amount of waste to comply with
the environmental legislation & regulations and economics of disposal in the present
scenario.
In SAIL, the solid wastes like mill scale, BF flue dust, BF slag and waste refractory bricks are
utilized fully. The company have achieved a very high BF slag recycling rate of 99% during
2020-21. BOF slag is recycled back in the process through the sinter plant, BF, SMS and
used as aggregates in the construction of road and as Railway ballast within the company.
Around 62% of BOF slag was utilized during 2020-21.

R&D based initiatives are being adopted either through inhouse research wing or in
association with other research centers or academies of national repute to improve upon
the BOF slag utilization. Some notable amongst the R&D initiatives are given below:

• Utilization of Steel Slag in construction of rural roads under the Pradhan Mantri
Gram Sadak Yojna (PMGSY)
• Development of steels lag-based cost-effective ecofriendly fertilizers for sustainable
agriculture and inclusive growth in association ICAR-Indian Agricultural Research
Institute (IARI)
• Study on use of composite slag (mix of BF slag and BOF slag) for making of Portland
Slag Cement (PSC)

As a result of these concerted efforts, SAIL has achieved 90% utilization of total solid
wastes generated during last year.

REFERENCE:
Mr. Ashwin Amala Ruban .R, Junior Engineer, Bhilai Steel Plant (SAIL).

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