PK steel

A PROJECT REPORT ON THE ORGANISATIONAL STUDY AT PEEKAY STEELS CALICUT

Submitted to Bangalore University, Bangalore for the partial fulfillment of the requirement for the award of MASTER OF BUSINESS ADMINSTRATION

Submitted by AHMAD UMBICHI AMEEN

T.JOHN INSTITUTE OF MANAGEMENT AND SCIENCE (Affiliated to Bangalore University) 2007

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DECLARATION

This is to state that the study titled “An organizational study on PEEKAY STEELS” is based on the original work carried by me under the supervision of Mrs. Priya Lecturer, Dept. of management studies towards the partial fulfillment of the requirement for the MBA course of Bangalore University during the third semester.

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ACKNOWLEDGEMENT The satisfaction and euphoria that accompany the successful completion of any task would be incomplete without the mention of people who made it possible, whose constant encouragement crowned the efforts with success. With immense pleasure I wish to express my sincere gratitude to Mr.P.S Abdulla koya, Business Development manager, Peekay Rolling Mills for his kindness and help he showered upon me. I also express my sincere gratitude to Mr. Monnu John, head of the department of management studies And Mrs. Priya, Lecturer Management studies for their guidance and support through the organizational study. This acknowledgement would be incomplete without expressing my whole hearted thanks to my parents, relatives and friends who motivated me and for their sincere inspiration and encouragement they showed through out the study. In the achievement of an enriched experience, I wish to acknowledge with heart filled gratitude to all those who have helped in the crystallization of this project. Looking back, I see a lot of other encouraging faces and helping hands which guided me through the project. I thank them all of the successful completion of this study. Above all I thank almighty god for giving me wisdom and knowledge to the complete the study in time and to the best of my abilities

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CONTENTS Chapter-1 1. Introduction 2. Steel Distribution- Industry Profile 3. Indian Steel Industry 4. Steel Processors - Business Ratio Report 5. Orgin of steel 6. Strategic Restructuring for the Indian Steel Industry Chapter-2 1. Company Profile 2. Organizational Structure 3. The Tempcore Process 4. Quality Policy 5. Vision 6. Mission 7. Location Map 8. Corporate Social Responsibility 9. Environment Safety 10. Technical Skill Training Programmes 11. Awards & Recognitions Chapter-3 1. Marketing & Product Details 2. Sales 3. Dealers 4. Customers Chapter-4 1. Human Resource department 2. Finance Department 3. Production Department

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Chapter-5 1. The Peekay Advantage 2. SWOT Analysis 3. Findings, Suggestion and Conclusion 4. Bibliography

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INTRODUCTION Man has been using steel since periods. Ancient utilization of Mesopotamia,India,China, Greece and Rome all had some knowledge of the production of iron and some of them also had crude steel.Assysilians used iron weapons to conquer neighboring Mesopotamian countries. The first iron produced was wrought iron by 500 BC. The cementation process of making steel was discovered. Cast iron was developed in China in 200BC.Hence, from making weapons and through discovery of cementation process, Crucible process, Benemer process, Open hearth process, Blast furnace, Electric Arc process, and Induction process etc discovered till today the consumption of steel has risen to very large amount. Iron and steel industry in the group of companies that mine and process iron-ors, indirect the iron and convert mort into steel. The remaining iron is processed for use in iron products. Steel is produced in many fasic shape and size. Other industries are these basic forms to manufacture automobiles, refrigerators, casting and many other products. The fasic sizes and shapes are mainly Blooms, Billets, Ingots and slabs which are also called semi finished products. the finishing mills use these to give rise to final products mainly steel and strip,fars plates pipes and tubes in cotton steels, structural shapes, wire rails and machines. Steel is such an important material that a nation’s industrial strength and standard of timing are often measured by the amount of steel it can produce. The world’s major steel producers are US, Russia, Germany, Japan and United Kingdom. It is a part and parcel of the economy almost all countries developed. Total world production of steel is estimated of steel is estimated at 900 million tones per year an the Us contributes to the 1/6 th of the worlds production.

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Origin of steel Steel is a rather special form of iron: an appropriate definition for this account would be iron alloyed with 0.5% to 1.5% carbon, so distinguishing it from wrought iron, which has much less carbon, and from cast iron, which has more carbon. The ancients recognized the value of steel, and also knew the arts of hardening and tempering, is clear; what they did not know was the actual cause of the difference between iron and steel. Indeed, it was only at the end of the eighteenth century that the role played by carbon was finally elucidated. It was in 1781 that Bergman, in Sweden, reported he had found that cast iron contained up to 3.3% of what he termed 'plumbago', steel containing up to 0.8% and wrought iron, less than 0.2%. In 1786, a group of French savants published a paper which, essentially substituting 'charbon'for Bergman's 'plumbago', established carbon as the essential constituent that distinguished soft iron from hardenable steel. Prior to this date, throughout the early part of what we now term the Industrial revolution, steel exhibiting a fitness for purpose had been produced on what was clearly a commercial basis: repeatedly and reliably. Admittedly, this was only achieved by what have been called 'rule of thumb' procedures; once a method had been shown to work, then none of the parameters must be changed. It could, however, be commented that modern quality control systems also call for adherence to standard methods of production. The earliest steel was provided by a modification of the bloomery process for iron production, some carbon being retained in the metal taken out from the hearth. This direct production of steel from the ore was a deliberate act on the part of the smith, presumably by adjustment of the ratio of charcoal to ore. With the replacement of the bloomery by the blast furnace in the medieval period, production of steel from cast iron became more complicated. Since the carbon content of steel falls between that of cast iron and wrought iron, it was logical to endeavor to refine cast iron by partial removal of carbon, leaving the correct amount in the product. Another approach was to refine the cast iron by removing virtually all the carbon, so

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producing wrought iron. This, in flat rectangular bars, was then recarburised in a controlled manner by embedding in crushing charcoal and heating to a bright red heat, whereby carbon from the charcoal gradually diffused into the body of the iron, converting it into the product known as 'blister steel'. This was the 'cementation process' and, again, did not involve the production of molten metal; although the bars were modified somewhat in appearance, they retained their physical identity. The procedure, first described in 1601 and cited in a patent of 1614, was obviously a working procedure during the seventeenth century and was in operation throughout the whole of the Industrial Revolution. The production of molten steel came with the work of Huntsman in the 1740s, utilising a coke-fired furnace to melt blister steel in a crucible, so producing a homogeneous melt, which could then be poured into a suitable mould to produce an ingot of 'cast steel'. The combination of the cementation furnace with crucible furnaces became the 'integrated steelworks' of the first half of the nineteenth century in Britain. The story of steel continues even today.

Steel Distribution - Industry Profile Covering over 175 industries and updated every 90 days, the First Research Industry Profiles do the heavy lifting for you - saving your sales team valuable research time, enhancing client communications and giving you the competitive edge to win more business. Easy-to-use and up-to-date, the Industry Profiles provide you with the industry research necessary to stay on top of constant changes in select industries. The First Research profiles help target your products and services directly to prospects. The Industry Profiles provide the information and understanding you need to engage new prospects during the sales process, deepen customer relationships and strengthen your own bottom line.

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Executive Summary Brief Excerpt from Industry Overview Chapter: In the US, about 10,000 companies distribute steel and other metals, with combined annual revenue of $110 billion. Large companies include Ryerson, Thyssen, Metals USA, and Reliance Steel & Aluminum. The industry is fragmented: the 50 largest companies only hold about 50 percent of the market. A typical large distributor has annual sales of $50 million and around 35 employees.

COMPETITIVE LANDSCAPE The health of the manufacturing and construction industries drives demand for steel. A distributor’s sales volume determines profitability because many costs are fixed. Large distributors benefit from economies of scale in purchasing, processing, and distribution. Small companies can compete by specializing in particular products or offering special processing services. PRODUCTS, OPERATIONS & TECHNOLOGY Steel products are made from carbon or alloy, stainless or specialty steels, and come in the form of sheets, plates, bars, rods, tubes, and structural items like rails and I-beams. In addition to selling steel mill products, distributors sell various processing services that customize products for particular customers. Because of the large number of steel products, most distributors specialize in the types of steel they carry and types of processing operations they perform. Different grades of metal and the varying thicknesses and sizes of materials result in a large variety of products. A large distributor may handle 85,000 products. Although several large companies have grown by acquisition in the past decade, most distributors have just one facility.

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Global steel demand is rising on the back of accelerated infrastructure activity in China, CIS and India, housing boom in USA, and white goods resurgence in Europe. During the recent recessionary phase, the industry has consolidated in terms of ownership as well as mothballing of inefficient capacities. Steel prices continue firming up. For the first time in last 20 years, there is demand growth all over the world for steel. In US, the demand is led by the booming housing industry. Additionally the auto industry is showing signs of recovery as auto sales hit their strongest levels for the year in July even as US posted a 2.4% GDP growth. - In Europe, there is demand from a buoyant housing and white goods industry according to industry sources. In India, China and other Asian countries the demand is led by emphatic investment activities in infrastructure. Russia and other CIS nations are also witnessing strong internal demand. - Iraq reconstruction work is expected to fuel further demand for steel over the next three years. China is consuming steel like never before for its infrastructure with investments such as Three Gorges project on Yangtze as well as part of its build up to the Beijing Olympics in 2008 and the Shanghai Expo in 2010. The demand supply gap is expected to increase and this will drive steel prices northwards, even as the global steel industry is not prepared for this demand onslaught.

Indian steel industry In India large scale steel making was only in the government sector. The only private sectors plants were those of TATA irons and steel company and Indian iron and steel company. Small steel making units with small capacity EAF/Induction furnace and rerolling mills were set up in the private sector. The growth of steel industry in India was restricted as the private sectors were not allowed to set up large integrated steel plants. The pricing and distribution were controlled by the government. Imports were restricted and import tariffs were high,

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development was very slow in other sectors like agriculture, automobile, engineering and constructions. In the second half of the eighty’s, the government de licensed the industry and many private entrepreneurs showed interest in setting up steel plants. Some of them already been commissioned and the rest are in process. In the early of ninety’s , the government decontrolled the pricing and distribution and also progressively reduced the import tariffs. This brought in competitiveness in the sector and the industry started growing at a rate of 5% by the mid ninety’s. However in 1996, the growth had flattened out and today the industry is saddled with large inventory while profit margins have been seriously eroded. One of the reasons for this is the lack of demand which is due to the countries very low steel consumption. Moreover substantial increase in cost of inputs and sluggists market conditions prevented the industry from offsetting this by the way of sales realization. In short in India, the steel industry has been severely affected by the general economics slow down

Steel Processors - Business Ratio Report This Business Ratio Report compares the financial performance of the leading players in this Industry sector, offering a quick and cost-effective competitor analysis tool for senior management. Ratios are an invaluable tool for comparing the performance of companies on a like-forlike basis. Using ratios, the relative profitability, growth or debt levels, for example, of differently sized companies can be directly measured or compared with ease. This Business Ratio Report focuses on the performance of key players in the steel processing industry. Having closely analyzed the sector, our editors and analysts have compiled the largest companies, so you don't have to. A Business Ratio report is, in effect, a complete financial reference for the sector.

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A business ratio report can be used to assess trading and financial information on: The Company: -Size -Structure -Performance

The Industry: -Structure -Major companies -Performance What you can look for when reading your Business Ratio Report: - Trends The results given in a Business Ratio report generally cover at least the previous three full accounting years, therefore any fluctuations in any area can be easily pinpointed - Benchmarks The average results for each ratio together with the industry profile of the average company in the sector can both be used as benchmarks to compare individual company performance. Size All the major companies in the sector are ranked on the basis of sales, profits, total assets and employee numbers (PERFORMANCE LEAGUE TABLES – Section 4). The largest and smallest of the key players can be easily identified, while the relative size of any company can be assessed. Growth The average annual growth of each company's sales, profits, total assets and number of

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employees over the three-year period being analyzed is calculated and ranked (Performance League Tables – Section 4). This key information highlights strong and weak performers, which companies are expanding or losing market share, increasing or decreasing asset investment, or taking on or shedding employees. The industry results are also given for comparison purposes. This information is perfect for all kinds of planning and decision-making Including: Competitor Analysis the depth of financial analysis provided on each company in each report offers you a comprehensive insight into the performance of individual businesses over recent years. The performance ratios let you easily identify the financial strengths and weaknesses of competitors in terms of profitability, liquidity, gearing, efficiency and employee performance Simple Benchmarking A Business Ratio Report is ideal for benchmarking your own company's performance. You can choose to benchmark your company against a major competitor, or assess the overall industry average performance. And you can focus on the criteria that are important to your business, such as profitability, employee performance or sales growth. Setting realistic performance targets becomes easier for you; with Business Ratio Reports, you will know that they are based on solid facts about your industry. Tracking Performance Trends With at least three years of financial data for each company and the entire industry you can identify performance trends instantly. Identifying Acquisition Targets Business Ratio Reports make it simple for you to identify potential acquisitions. You can easily find companies fitting your criteria using the Performance League Tables.

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A Business Ratio Report takes the hard work out of financial performance analysis. You are left free to focus on using the vital information it imparts to drive your business forward.

Strategic Restructuring for the Indian Steel Industry There have been almost revolutionary changes in the global steel scene with fierce competitive pressures on performance, productivity, price reduction and customer satisfaction. National boundaries have melted to encompass an ever increasing world market. Trade in steel products has been on the upswing with the production facilities of both the developed and the developing countries complementing each other in the making of steel of different grades and specialty for the world market. The Indian steel industry comprises of the producers of finished steel, semi-finished steel, stainless steel and pig iron. Indian steel industry, having participation from both public sector and private sector enterprises, is one of the fastest growing markets for steel and is also increasingly looking towards exports as driving the growth of the industry. Aruvian Research brings a research report on Strategic Restructuring for the Indian Steel Industry focusing on the Indian Steel Industry and analyzing each and every aspect of the industry, but mainly focusing on the strategic restructuring the industry requires and is presently undergoing to meet up to the challenge of the global steel industry. Starting from an analysis of the competitiveness of the industry to the production/consumption scenario of the industry, the report analyzes the Indian Steel Industry through a SWOT framework analysis, a PEST framework analysis, and a Porter’s Five Forces Strategy Analysis. Then it moves on to the strategic restructuring analysis. An analysis of the major players in the Indian Steel Sector and the Global Steel Industry completes this comprehensive research report.

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CHAPTER-2

COMPANY PROFILE

COMPANY PROFILE

Peekay Rolling Mills (P) Ltd. Is an ISO 9001:2000 certified company, accredited by the bureau of Indian standards (BIS): ISI license holder IS: 1786-1985. Peekay has now adopted Tempcore technology under license from CRM Belgium for the production of TMT Re-bars.

GROWTH Founded in 1942 by the visionary Haji P.k Moidu, ours is a story unstinting dedication to quality, the strong foundation laid down by his extraordinary business acumen and uncompromising integrity has forged a company that remains committed to providing the consumer the very best. Over the past 50 years, the group has cherished these values and focused on new objectives. New ventured in which it continues to set benchmarks. Today, the Peekay Group has a turn over of USD 75 million. Peekay Rolling Mills (P) Ltd. Is South India’s only producer of Fe 500 grade TMT bars, Peekay steel is trusted by many of the leading builders across states, because we offer premium quality, at prices that are significantly lower than those of premium brands. The group’s strong vision has given it the right direction and ever-increasing urge to grow. It is this vision that is leading PEEKAY group to new horizons, expanding and diversifying to new industries and cutting edge technologies. At present, the group’s

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activities include steel production, food processing, rubber plantation, health care, education charitable institutions etc. Peekay Rolling Mills (P) Ltd, established in 1993, manufacture TMT Re-bars in various sizes ranging from 8mm to 25mm.The TMT Re-Bars are manufactured using TEMPCORE Technology under license from centre de Rescherches Metallurgiques (CRM), Belgium, the inventors of the process. TEMPCORE is a brand which is very popular and accepted with confidence throughout Europe and other developed countries.TMT RE-Bars are produced in two grades viz. FE-415 and FE-500 The company employs advanced technology with modern machinery and equipment. It has well equipped quality control laboratory consisting of sophisticated testing Equipments. The Company has installed a high speed Bar Delivery System with automated Rake type cooling bed at huge investment. this addition in plant ad machinery will considerably improve the quality of out TMT steel and production.Peekay Rolling Mills is the only rolling mill to have highly sophisticated automatic cooling bed system in the secondary steel sector in south India.

EDGE We are proud to have access to Tempcore Technology under the license from CRM Belgium. This allows us to create a superior product. THE TEMPCORE PROCESS The re-bar leaving the last stand of hot rolling passes through a special water cooling section. The cooling is such that a surface layer of the bar is quenched in to marten site, the core remaining austenitic. The quenching treatment is stopped when a determined thickness of marten site has been formed under the skin. The Re-bar leaves the drastic cooling section, the temperature gradient established in its cross section causes heat to flow from the centre to the surface. This results in self tempering of v marten site. Finally,

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during the slow cooling of the re-bar on the cooling bed, austenitic core transforms into ferrite and pearlite. Peekay TMT is produces by the worlds most advanced technology licensed from Centre de Recherches Metallurgriques (CRM) , Belgium, inventors of this process. Tempcore bars are being successfully used in most parts of the developed world.TMT are produced in two grades” TMT 415 and TMT 500. The numbers indicate the proof stress.

Quality Policy: Our constant endeavor is to satisfy and continually improve our customer satisfaction regularly and improve our quality management systems, people and processes to remain as a market leader in our industry. Peekay Rolling Mills (P) Ltd., is an ISO 9001 – 2000 certified company, accredited by Bureau of Indian Standards (BIS): ISI License holder IS: 1786-1985. It was established in 1993. Peekay has now adopted Tempcore technology under License from CRM Belgium for the production of Peekay TMT Rebars. CRM is a Belgium Government owned Research Institution Quality to PSI means not only product quality or service quality but also cost, delivery and after sales service which goes with it. Responding to this concept of quality PSI has adopted quality systems appropriate to it's clients. PSI's commitment to product quality is reflected through quality systems adhered to from selection of raw material to dispatch of finished goods. Excellent traceability and identification are factors for our product and are maintained from receiving stage till dispatch.

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PSI is committed to total quality which shall be achieved by timely delivery of quality products to the entire satisfaction of the customer and by continually improving its quality management system processes. The Bright Steel Bars of PSI are characterized by a smooth surface, free from scale and harmful imperfections, tight dimensional tolerances, superior straightness and higher strength than hot-rolled products. They are ideally suited to machining and shafting applications. The company’s products are well accepted in the market. The company has paid central excise duty to the tune of Rs.26 crore during last year. we are pleased to iformthat the company is recipient of the Top duty Payer Award and the highest growth rate award in the organized private sector in the Calicut Central Excise Commissionerate fir the last three years.

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VISION To be an engineering conglomerate and lead Peekay to new horiaons , expanding and diversifying to new industries and cutting edge technologies. A one stop supplier to all the major OEM’S globally in terms of ready to assemble machine castings forging and fabrication requirements globally.

MISSION To produce 13,200 tons of steel castings in financial year 2008-2009.To serve the customer with wide range of requirements starting from 0.5kg to 12 tons single casting from our different locations emerge as one of the top five manufacturers

Location Map Kerala, known as God’s own country is a land of your dream. It is a reservoir of rich and varied culture. The exotic back waters and gorgeous wild life make it one of the best tourist centers of India. It has folklores, festivals, lush green forest and many other things that’s uniquely its own. Our company PEEKAY ROLLING MILLS (P) LTD is privileged to be situated in the paradise, in a city known as the city of hospitality-Kozhikode (Calicut)

Calicut has an international airport. The nearest seaport is Cochin, which is about 210 km south of Calicut. Cochin is also a busy international airport. Our company has direct access to National Highway 17, which stretches through the heart of Kerala from Cochin to Mangalore. One of the busiest railway stations of Kerala – Calicut is mere 5 Kms from our factory.

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Nearest Airports

Calicut international airport 26 Kms

Nearest Seaports

Cochin Nedumbasseri international airport 185 Kms Cochin about 210 Kms

By Road

Mangalore about 240 Kms 6 Kms from Calicut town towards south by NH 17 210 Kms from Kochi (Cochin) towards north

COROPORATE SOCIAL RESPONSIBILITY Peekay group is aware of its corporate responsibility. The group especially the steel company is committed to contribute to the economic development and improving to quality of life of the work force and their families and the society at large. The group liberally supports orphanages schools for the blind and dumb and mentally handicapped children. It also provide in plant training Programme to students receiving education in engineering , technology , management and other related subjects in south India. In addition steel casting private (LTD) is conducting a technical skill Programme, the first of it kind by an industry in Kerala which is designed exclusively fir these equipped with relevant technical knowledge and having a career goal in the specified areas. The Programme attempts to fulfill highly skilled training relevant to foungry and hot rolling industry and fire safety. It is a six month Programme imparting on the job technical skills to graduates, diploma and ITI certificate holders in engineering and physics. At the end of training the candidate are provided with certificate.

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ENVIRONMENT SAFETY We are conscious of our responsibility for the environment safety. We abide by the various statutory rules and regulations for the environment protection and pollution control. We have started taking steps for a totally dust free atmosphere in the foundry which will ensure health and safety of employees and smooth and safe functioning of foundry. Our aim is to obtain ISO 14001 relating to environment management by 20092010.This will help to improve productivity level of our employee which will ultimately ensure better quality and delivery of our products At lower cost,

Technical Skill Training Programmes Peekay Group of companies, being a successful business group in Kerala for the past 5 decades, and have proven their success in Manufacturing, Trading, Food Processing, Rubber Plantations, Health Care, Education and Charity. Peekay Steel Castings (P) Ltd and Peekay Rolling Mills (P) Ltd are the two major divisions of Peekay group of companies. Peekay Steel Castings (P) Ltd, has two state-ofthe-art foundries located at Calicut ( Kerala ) and Coimbatore ( Tamil Nadu), which produces high quality steel castings, catering to the needs of the major industries in India (GE and L&T )and abroad. We are offering Technical Skill Training Programme (TSTP), to impart on-the-job technical skills to diploma and ITI certificate holders/ graduates in Physics and mechanical engineering, in specific areas of foundry technology, so as to help skill advancement to take up high skill jobs. This Programme is designed exclusively for those equipped with relevant technical knowledge and has a career goal in the areas like Fettling and Heat Treatment, Melting, Moulding, Welding, and NDT. The program attempts to fulfill the demands of the Indian casting and rolling industry by offering highly skilled training directly relevant to foundry and hot rolling industry

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AWARDS AND RECOGNITIONS 

Largest private engineering entity in Kerala

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Largest exporter of engineering goods from Kerala

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Major contributor to the national exchequer from this part pf the country.

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Top duty payer and the highest growth rate award in the organized private sector in Calicut.

Marketing &Product details The marketing activities of PSI is supported by it's stockholding at 6 warehouses cum distribution centers and also through dealers and direct marketing. The company has its approved transporters, freight forwarders and clearing agents to handle the logistics of cost effective materials movement of raw materials and finished products. Materials are delivered within the agreed time to our clients in India and overseas. Together with a team of dedicated staff and commitment to stock holding, PSI is supplying directly to the following sectors: 1. Automotive 2. General Engineering Agriculture and machine building. 3. Mining 4. Repetition Engineering. 5. Forging Bright steel bars are extensively used in the following: 1. Automotive - (Shock Absorber Piston Rods, Rack Bars, Head Rests and General Automotive Parts). 2. General Engineering Agriculture and machine building. 3. Mining 4. Repetition Engineering.

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BRIGHT LEADED FREECUTTING STEEL 12L14 is low carbon leaded free cutting steel supplied bright drawn or smooth turned, offering a high and consistent level of machinability with no adverse effect on the mechanical properties.

Typical Applications: Parts and components subject to moderate strength levels and relatively low shock loading, with machinability a major consideration. BRIGHT NON - LEADED FREECUTTING STEEL 1214 is a low carbon free cutting steel supplied bright drawn or smooth turned, offering a high and consistent level of machinability. Typical Applications: Parts and components subject to moderate strength levels and relatively low shock loading, with machinability an important consideration. BRIGHT COMMERCIAL QUALITY MILD STEELIs commercial quality low carbon mild steel, supplied bright drawn or smooth turned,

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offering a good balance of strength, ductility and toughness with excellent weldability and fairly good machinability .

Typical Applications Axles, bolts, connecting rods, motor shafts, hydraulic shafts, pins, pump shafts, machinery parts etc. Or when carburized for camshafts, light duty gears, spindles and ratchets etc.

MEDIUM TENSILE STEEL This is a medium carbon, medium tensile steel, supplied black as rolled, black as forged or normalized and bright drawn or smooth turned, offering good strength, toughness and wear resistance. Can be hardened and tempered. Typical application Axles, bolts, connecting rods, hydraulic rams, pins, rolls, spindles, shafts, studsetc, requiring higher strength or similar grades can provide. Business activity: 

Trading of bright steel bars produced by Peekay Steel Industries

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Independent trading of rolled long and flat steel products.

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Imports and Exports of rolled and finished steels.

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Representatives of overseas steel producers and traders in India

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Representatives of Indian steel producers for overseas countries

Materials: AA. Flat Steel Products 1. Hot Rolled Plates / Sheets and Coils 2. CR / GP Coils and Sheets 3. Electrolytic Tin Plates 4. SS Coils and Sheets BB. Long Products 1. Sections like angles, channels, beams, joists etc. 2. Round Bars (Black and Bright), Deformed bars and Wire Rods 3. Steel Pipes - ERW / HFIW / Seamless / Saw Quality 4. Billets and Blooms BHARAT MERCANTILE CORPORATION Largest trader, distributor and importers in Eastern India for chemicals and bulk chemicals.

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BRIGHT STEEL BARS Bright Steel Bars are manufactured from Hot Rolled Bars/Wire Rods through the process of cold drawing, centreless grinding, turning or a combination of these to produce steel with greater dimensional accuracy, straightness, smooth surface, free from harmful defects and enhanced mechanical properties. Cold finished steel offers many benefits, including close size tolerance and concentricity, straightness, strength, a smooth finish, precise mechanical properties, and greater machinability. The finished product has a shiny appearance that explains the common use of the term "bright bar." Cold finished products are used to manufacture precise components in almost every industry

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Grades: Mild steel, Carbon Steel & Free-Cutting Steel En3B En32B En8 En8A En8D En9 CK-45 En1A-NL En8M En15AM En1A-L etc WEIGHTS OF STEEL BARS ROUNDS, SQUARES, HEXAGONS, ( Specific Gravity 7.85 )

Size MM

Round Kgs/M

Square Kgs/M

8

0.395

0.502

9

0.499

0.636

Hexagon Kgs/M

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10

0.617

0.785

12

0.888

1.13

1.149

15

1.387

1.766

1.74

20

2.466

3.14

2.998

25

3.853

4.906

4.249

30

5.549

7.065

6.118

30

5.925

7.544

6.533

32

6.313

8.038

6.961

35

7.553

5.075

8.328

38

8.903

11.335

9.817

40

9.86

12.65

10.877

45

12.485

15.121

13.767

50

15.413

19.625

16.996

55

18.65

22.991

20.121

56

19.335

24.618

21.319

60

22.195

28.26

24.474

65

26.338

33.166

28.723

70

30.21

38.456

33.312

75

35.065

44.156

38.24

80

39.458

50.24

43.509

85

44.545

56.71

53.355

90

49.939

70.845

61.355

95

56.249

55.936

64.121

28

100

61.654

78.5

67.983

105

67.973

86.46

74.951

110

74.601

94.985

81.259

115

81.537

103.816

89.907

120

88.781

113.04

97.895

125

96.337

121.656

106.223

130

104.195

132.665

114.891

135

112.364

143.066

123.899

140

120.841

153.86

133.247

145

129.627

185.046

142.934

150

138.721

176.625

152.962

160

157.833

200.96

174.036

170

178.179

228.865

196.471

175

188.814

240.406

208.198

180

198.757

254.34

220.265

200

246.614

314..000

271.932

210

271.893

346.185

299.805

220

299.403

337.34

329.038

250

358.356

490.625

424.894

280

483.365

615.44

532.986

285

500.782

657.616

552.192

290

518.508

660.185

571.737

295

556.541

761.146

591.622

29

300

561.051

797.283

679.167

Sales:

Year 1. 2003-04 2. 2004-05 3. 2005-06

Sales (tonnes) 30977.71 37085.61 52,551

amount (crores) 53.59 65.76 135.53 30

4. 2006-07 5. 2007-08

42430.32 39,251

122.53 115.00

The products are produced only after the order is made by the customer. The current situation is that the company is not able to supply the increasing demand for its products. Major sales of the products are from exports to foreign countries. Products are exported to European Union namely France, Italy, UK, Germany, Netherlands, Japan and the Middle East. The steel castings are also sold to public sector undertakings, defense establishments, 100% export oriented units and large value manufacturers in India. The steel castings are well accepted by the customers in India and Abroad

Our Dealers:

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ANRANJU STEELS, Kuttipuram.

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ASIAN STEELS, Puthiyangdi.

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B.M.STEEL, Kallai Road, Calicut.

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C.S.A. ASSOCIATES, Calicut.

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CIVIC STEEL & CEMENT, Karaparamba, Calicut.

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ELITE STEEL, Cheruvannur.

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FERROUS ENTERPRISES, Kallachi.

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HADEED METALS, Badagara.

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KAMBIL ENTERPRISES, Kambil.

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KAVALAKKAT AGENCIES, Thrissur.

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MELIT METAL AGENCIES, Sulthan Bathery.

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METRO STEEL CORPORATIONS, South Kanhangad.

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METRO STEELS, Modern Bazar.

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MOGUL STEEL AGENCIES, Cheruvathoor.

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OMEGA STEELS, Calicut.

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QUEENS STEEL, Badagara.

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RAJA AGENCIES, Badagara.

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SAFA STEEL LINES, Chirakkal.

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SEENA STEEL, Calicut.

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SOUTHERN STEEL, Kannur.

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ST.MARY’S CEMENT CENTRE PVT.LTD, Ettumanoor.

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STEEL HOUSE, Thana.

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STEEL INDIA, Koyilandy.

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STEEL WORLD, Govindapuram.

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SUPER STEELS, Mowanchery P.O. Kannur Dist.

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T.M. STEEL AGENCIES, Calicut.

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THARAYIL STEEL INDUSTRIES, Perintalmanna.

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THE STEEL&CEMENT ASSOCIATES, Meethottuthazham.

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V.K.ENTERPRISES, Iringanoor.

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YEM VEE TRADERS, Ramanattukara.

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ZENITH STEEL, Cheruvannur

List of Important Builders and Institutions using Peekay Steels 

LARSEN & TOUBRO ECC., Chennai, and BHEL, for Kuttiyadi Hydro Electric Power Station.

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

LARSEN & TOUBRO Water supply Project. Japanese KWA Project. Tokyo Engineering Consortium approved our Steel.

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ITD CEMENTATION, Mumbai using FE 500 and FE 415 for PEEVEES Pantaloon Shopping Mall.

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M.E.S.Medical College, Perintalmanna, Construction by LARSEN & TOUBRO ECC., Chennai.

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HOSMAC Consultant, Mumbai.

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ABAD BUILDERS, Cochin.

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HEERA CONSTRUCTION, Cochin.

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Mata Amrithamayi Institute of Medical Science, Cochin.

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Jommer Properties & Investments Ltd, Cochin.

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Galaxy Builders, Calicut.

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Crescent Builders, Calicut.

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Express Housing Pvt. Ltd., Calicut.

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Hi-Lite Builders, Calicut.

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PVS Apartments, Calicut.

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Ace Structures and Builders, Calicut.

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Malabar Realtors, Calicut.

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Seerosh Constructions, Chennai.

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Prestige Medical College, Kannur.

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National Institute of Technology, Chathamangalam, Calicut.

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Telephone Exchanges of BSNL, Kasargod. 34

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Safi Educational Institutions.

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KMTC Engineering and Medical Colleges, Mukkam, Calicut.

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C.T.Ramanathan & Co.Salem for their Projects of CPWD, Calicut.

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LULU INTERNATIONAL CONVERSION CENTRE, Thrissur.

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Alliance Dwel Well Projects, Cochin.

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St. Joseph’s Devagiri College, Calicut.

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Asset Homes, Cochin.

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Regal Projects, Cochin.

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Infra Housing Projects, Cochin.

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Shanthi Home Builders, Cochin.

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SOUTHERN INVESTMENTS Properties (S.I), Calicut.

Human Resource Department

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Human resource management is a specialized branch of management of an organization, specifically concerned with the management of human resources in respect of their procurement, training and development and motivation towards the attainment of objectives of the organization. In other words Human resource management deals with planning, organizing, directing and controlling and utilizing the work force in the enterprise for achieving the objective of the organization. Man power Man power is the process including forecasting, implementing and controlling by which a firm ensure that it has the right people, at the right place, at the right time doing the right things for which they are suited for the good of the organization. This group has well experienced and quality workers in each unit. The production department is 24 hours working in shifts. The rolling starts at 10 in the night and will be over by 4 in the evening. Recruitment There are various sources of recruitment. They are 1. Contractor 2. Advertisements

The laborers are recruited on contract basis. It helps the firm to get workers to meet sudden shortage. The office staff and supervisors are salaried and recruited through advertisement in news papers and by Naukri.com Workers are also recruited from another source i.e. the existing employees and their referrals.

Remuneration

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The group is able to pay a reasonable salary to all its employees, difference in salary depends on the position, skill required, risk involved, responsibility taken up and experience.

Apart from salary employees get the usual allowances. Housing facilities are provided for the workers in the production department. Bonus is given twice a year.There is also 10% rise in the salary to each employee every year. The worker to allowed to take a maximum of 12 holidays apart from national holidays. Facilities Provided Salary and allowance structure – Best in the industry, commensurate with qualification and relevant experience. Canteen facility with healthy wholesome food and beverages. Accommodation and transportation facility for those who need it. Accident and medical claim insurance, social security through EPF and ESI Schemes. Annual Bonus, ex-gratia, loyalty bonus and incentives. Company support and help to set up residence, schooling and other facility for those who need it. Modern safety, Health and Environment working conditions.

People

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Peekay family has more than 1500 members. The success of the company is attributed to the strength and unity if the members of the family. The group is conscious of their skills, passion, strength and strong values. The group has a value based approach. Their group’s indomitable spirit, commitment and hard work have won the appreciation of their customers. Loyalty and values are the fabric of the groups work philosophy; every employee is a partner in our progress and benefits from our profits. He is proud of his contribution to the success of the company. We have regular in plant training Programme for upgrading the skills of the employees and familiarizing them with the latest technology and manufacturing process. Very often the employees are deputed for short term course conducted by specialized agencies. The company is committees to safety and health of all members. Peekay group of Companies, believe in “People-First” policy in all its ventures, and strongly believe that the People are the most valued asset of the Company. In this direction, the Company will strive to make it as the most preferred employment

Peekay Human Resource Management Values    

The aspirations of its people. Timely discharge of its entire monetary and other obligation. Complete empathy and patience with people’s views. Accessibility to all levels of HR department at all times

Peekay Human Resources Commitments

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Merit as the sole consideration for recruitment and development. Comply all statutory requirements in the matter of compensation, social security, safety and welfare and go beyond statutory requirement to ensure welfare, well being and continued loyalty to the company till normal retirement. Bench mark best HRM practice and develop the full potential of every individual and provide growth, and work place advancement. Follow ethical people policies and practices. Build effective and seamless communication channel to ensure highest standard in quality, production and delivery to customers and towards employee growth, welfare and well being. Fairness, trust, equal opportunities, work place dignity and complete nondiscrimination in all matters. Effective mechanism to avoid grievance and redress, in case of any grievance at the earliest. To build long term partnership between owners, management and employees, in success of the Company.

Finance Department 39

Finance is scarce. It is also the most important aspect of business. Finance requires proper planning and control to achieve the objectives of business. Finance function is concerned with procurement of funds from various sources to utilize them effectively. Finance functions are the provision of money at the time when it sis needed

Profit Policy Major portion is reinvested is followed. The reinvestment profit policy of the company helped in the expansion. Even though the profit of the company helped in the expansion. Even though the profit is the rolling industry dropped in small ratio. It has been efficiently made up by the high increase in the profit made in the foundry units. A certain percentage of profit is treated as capital reserve.

Assets, Investments and share Capital

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P.K steel industry with an investment of Rs.45 lakh equally contributed by all of the partners. The intial share capital was Rs. 0.5 Crores.The Company turned to deemed public limited in 1996.Peekay rolling Mill Industry started with an intial share capital of Rs 0.5 crores in 1995 .SBT (State Bank of Travancore) is the official bankers of the company.

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PRODUCTION DEPARTMENT  P.K STEEL CASTING UNIT  MELTING & ROLLING UNIT

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PEEKAY STEEL CASTING (P) LTD:Peekay steel Casting (P) ltd is modern state of the art foundry located at Calicut on kerala on the west coast of India. It was established in 1991.

They manufacture high quality steel castings made of carbon steel. Alloy steel. Stainless Steel, Nickel bared steel, duplex steel etc in various size & weight, up to 11500 Kg per piece for petro chemical industry, water supply, earth moving, mining, and automobile and other engineering industries. The annual production capacity is 5400MT.The Castings are produced to international specifications. They are members of 

Casting Technology International (CTI-UK)

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American foundry Society (AFS)

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Institute Of Indian Foundry Men (IIF)

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CASTING UNITS Here the melted steel is used to produce different sizes of castings valves etc.The castings produces over here are of eyesirt quality. The

melted steel undergoes complicated

applications. Stand mould yes or skeletons of different capacity are produced in a comparatively small furnace.P.K steel casting foundries are mainly divided in to three units based on their capacity. 1. Light steel foundry 2. Medium steel foundry 3. Heavy steel foundry LIGHT STEEL FOUNDRY Steel Castings of 500gm-17 kg are produced over here. The scrap raw materials are put in to the furnace and melts in to liquid steel at 1535 deg Celsius. The melted steel is poured over in desired patterns. This steel hardens forming designs and is trimmed through grinding process. Steel valves are produced in the light steel foundary These steel valves undergo dimensional tests to check the external fitness. The internal defects are identified using the radiography tests and the defects are repaired. The final product will be ready for dispatch. MEDIUM & HEAVY STEEL FOUNDRY Medium as well as heavy steel foundry produces castings of 100kg- 10 tonnes. The machine capacity is 22 metric tonne per month. Castings are classified and [produced on the basis of codes & grades. Heavy steel foundary undertakes the producing heavy steel article. Heavy steel castings are produced in the request of the customer. On the basis an estimate cost on the basis of the weight and manufacturing cost is quoted. It includes only the process cost.

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When the manufactures approve these estimated requirements the unit undertakes the heavy casting production process. The details of activities to be performed are sent to each concerned department. The steel is melted to 1535 degree Celsius. This melted ore is carried by the ladle to be poured in to the mould. The mould will be made out of stand, which is mixed with certain hardening materials. A coating is put to the mould for the mould to remain in shape. The melted ore will be poured to the mould, which is shaped according to the design required by the customer. This mould is then set and left to cool down. After the cooling process the mould is taken off and the steel moulded is taken out. The steel casting may not be of perfect shape. The unwanted extensions are to be cleaned and removed. The heavy steel casting is now in a final product stage and it is ready for dispatch.

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Melting Unit Under this unit, production of metal bars and rods of a metric tone is undertaken. Raw materials are either obtained from the ore or are automobile scraps or construction material scrap. These scraps are melted in this unit by passing it through the induction current. The furnace is made out of copper in the form of a skull which is cooled by passing water at the bolt of the skull. The raw materials scarps are mainly imported from U.S and Europe. Shredded scraps are also used because of easiness in melting. Heavy magnets are used to dump the scrap in the furnace. Scraps are mixed in certain proportion to get different properties. Once the scrap is melted the heavy density steel settles down and the impurities can be removed through this refining process. Carbon, silicon phosphorous etc are mixed up, in certain percentages which would give different properties to steel. Price of the steel differs on the basis of the quality, i.e. high prices are quoted to improve quality. Material Handling Capacity- Two cranes of 2 tone capacity To identify the chemicals “added their proportion, zero alters are added to the melted steel. Once the melting process is over the temperature is measured using\g a device, Emerson Pyrometer. The thermo cup in the pyrometer when dipped into steel leaves a hole; the size and voltage determines the temperature. The melted steel is poured into dyes and square moulds which has a hollow space inside. These dyes are placed in reflection channels which have a ladle holding device at the bottom which has a closing and opening system. Cranes are used to the move the materials over.

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The melted steel is poured into dyes and in five minutes it gets cooled and the impurities gets cooled and the impurities are removed. These bars rods are stacked and get ready for dispatch.

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Rolling unit The bars are produced in the melting unit s are carried to the rolling unit. The bars are produced in the melting init are cooled and these bars are re-heated up to 1250 degree Celsius. The bars are heated up in a re-heating furnace. This furnace work by the use of oil. These heated bars are rolled between two rollers. The bars are elongated by drawing them. These bars will be paned through a quenching box for cooling it down. When passing through quenching box; the outer surface will get cooled. These bars are then twisted to make twisted CDT bars. These twisted bars are then passed to the cooling bed, where it gets cooled down and the CDT bars are now ready for dispatch.

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MANUFACTURING PROCESS OF STEEL ROLLI NG PROCESS ↓ INPUTS ↓ HEATING ↓ ZOARKING ↓ ROLLING MILL ↓ FRONT CUTTING ↓ ROLLING INTERMEDITE MILL ↓ ROLLING FINISHING MILL ↓ CUTTING TO UNITS ↓ COOLING ↓ DISPATCH

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MATERIALS HANDLING Starting from the time, the raw material enters the factory gate and goes out of the factory in the form of finished products, it is handled at all stages in between no matter it is in the stores or on the shop floor. A component may be handled even 50times or more before it changes to finished product. Material handling involves the movements of materials, manually or mechanically in batches or one at a time within the plant. The movement may be horizontal, vertical or the combination if horizontal and vertical. MATERIAL HANDLING EQUIPEMENTS:1. Sigma Crane 2. Bridge Crane

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MANUFACTURING PLANT FOR CASTING Process Work order ↓ Monthly weekly or daily planning ↓

Issue pattern Core→Verfying suitability for production

↓ Pouring→Heat no strip ↓ Knock Out ↓ Shot blasting→Test stage inspection ↓ Arc cutting ↓ Filling ↓ Shot blasting ↓ Welding ↓ ↓ Grinding ↓ Heat Treatment→verfying the H.T ↓ Shot Blasting→ third stage inspection ↓ Dispatch→ Inspection & test certificate

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Advantages of Peekay steel:  

Optimum combination of high yield strength and excellent bendability. Enables designer to reduce steel consumption, and yet obtain extremely safe steel structure.  Excellent weldability  Superior corrosion resistance  No tendency of aging and embrittlement  TMT bars can be heated up to 500 c at room temperature without loss of strength.  Uniform properties throught the length, as the entire process is computer controlled.  Mill scales per unit of surface area less than 50% in normal hot rolled bars.  Excellent fatigue properties  Can be galvanised with no loss of strength and ductility  Saving in steel consumption as much as 18% while using Fe 500 Best choice for earthquake resistant construction

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FINDINGS: 

Peekay group functions, imbibing the values of integrity, transparency, hard work and commitment.



The Group believes in practicing ethical business



The group believes in growth and diversification in to different areas of manufacturing.



Any task undertaken is delivered with utmost responsibility and sincerely meeting the standards.



Peekay functions with the most modern technology in production and safety.



The employees perform under the best HR management.



The group knows its social responsibilities to the society and does best for the needs.



The raw materials purchased are recorded at FIFO rates which help in regulating the cost of production as the price of raw materials keeps fluctuating.



The castings and other products are dispatched after several grounds of quality check which helps in maintaining the product quality and the goodwill of the firm.



The scrap used in production is imported. This is because scrap is cheaper and ij better in quality.

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Suggestions: 1. Safe work environment need to be provided to the unskilled workers. 2. Employment opportunities should be opened to the local people. 3. Indian markets can be concentrated more rather than foreign markets .This would help in increasing sales

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Bibliography 1. Aruvian Research, March 2008, Pages: 80 2. www.Peekaysteel.com 3. www.Peekayrm.com 4. www.Peekaycbe.co.in

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