GLOBAL COUNTRY STUDY REPORT
On
Steel Industry of Kenya
w.r.t.
Business Opportunities for West Bengal
SUBMITTED TO
Institute Name
GEETANJALI INSTITUE OF MANAGEMENT STUDIES
Under the Guidance
Prof. Milan Padariya
In partial Fulfilment of the Requirement of the award of the degree of
Master of Business Administration (MBA)
OFFERED BY
Gujarat technological University
Ahmedabad
Prepared by :
Students of
MBA (Semester – III/IV)
Group No.
2013-2015
PREFACE
Our M.B.A. course is the course consisting study of administrative, managerial and working activities of industries. For better functioning, every industry needs talented and qualified executives. To reach these needs, our university has established such a disciplined course.
The knowledge and guidance about subjects of analyses of steel industry in Kenya is given by our learned professor, for comparison with Gujarat and west Bengal. The report thus contains all the information of the steel industry of comparison with different countries.
ACKNOWLEDGEMENT
This project Report Requires many things. I am thankful to Gujarat University that it has implemented such a nice practical work for the student of M.B.A.
I have received a generous help from many persons in conducting this report.
First and foremost, I am grateful to ASS.Prof. Milan Padariya Commerce and Management college-Rajkot for his masterly guidance, meticulous attention, scholarly criticisms, affectionate reprimands and perceptive suggestions without which this study would not have been possible.
Words cannot express my gratitude to my parents and other members of my family for all the help and encouragement, I have received from them.
I thank to all my friends from the bottom of my heart for their concern & kindness.
Yours Faithfully
Date:
Place: Rajkot
STUDENT’S DECLARATION
We, following students, hereby declare that the Global /country study Repot titled “Global country Repot on Steel industry “ in Kenya and west Bengal is a result of our own work and our indebtedness to other work publications, references, if any, have been duly acknowledged. If we are found guilty of copying any other report or published information and showing as our original work, or extending plagiarism limit, I understand that we shall be liable and punishable by GTU, which may include ‘Fail’ in examination, ‘Repeat study &re-submission of the report’ or any other punishment that GTU may decide.
Enrollment no.
Name Signature
137660592072
DISHA B. SOLANKI
137660592061 DHARA RAMANI
137660592052 DHARA PANARA
137660592070 NIRALI SOJITRA
137660592087 URMI VARSAKHIYA
INDEX
Sr.no. Particular Page no.
1 Information about Jindal Steel Company 1
2 Information about Brollo Steel Company 27
3 SWOT Analyses of Jindal Steel Company 21
4 SWOT Analyses of Brollo Steel Company 33
5 Market Analyses of the companies 35
6 Import-Export of the countries 43
7 Balance sheet of Jindal Company 56
8 Balance sheet of Brollo Company 57
9 Projected balance sheet of Jindal Company 59
10 Projected balance sheet of Brollo Company 60
11 Findings 61
12 Business Plan 62
13 Webliography 63
SUMMERY
The report is based on steel industry of Kenya w.r.t. West Bengal and Gujarat. Steel is the backbone of the economic activity of any country. The per capita steel consumption is an globally recognized indicator of the level of development of that country. Direct and indirect use of steel in Kenya was projected to be 0.567 – 0.614 million tons in the year 1985 and 1.860 – 2/356 million tons in the year 2000. On the basis of the above projection the per capita steel consumption in Kenya was expected to increase from 20 –25kg in 1985 to 45 – 50kg of iron and steel by 2000.this can be compared to 798kg in USAand 915kg in japan in 1985 as per account by undo. Industrial growth and economic well-being are reflected in such physical development as housing, transport facilities, water distribution, industrial premises including warehouses and office space, agricultural mechanization, leisure facilities, healthcare facilities and many others. The iron and steel sector is mainly controlled and owned by the private sector of Kenyan Asians unlike in many countries where the iron and steel sector is public owned or government controlled. The Kenyan private sector has over the years invested over kHz. 5billion in fixed assets for the production of various iron and steel products. The industry is heavily dependent on imported raw materials, as no local sources have been urban to date. Local deposits of iron ore have been identified in several locations but have not involved commercialinterest. Metal and steel industry is considered backbone of the economic activities of country. The per capita steel consumption of country, the per capita steel consumption isan globally recognized indicator of the level of development of country. Kenya has a basicmetal zone making variety of downstream product from local and imported steel scrap, steel billets and rolled coils. Kenya import steel billets, coils, wire and wires, steel plates, pig iron. The country possesses a broad based metal product sector withvarious independent business, foundry and metal work workshops. The main sub sector of Kenya’s metal industry are steel smelting and not rolling and the manufacturing of wire and wire products, galvanized and cold rolled steel product and pipes. Metal and steel products arecurrently Kenya’s largest manuctured goods exports within the market for eastern and South Africa and east Africa community regions.
Kenya faces tremendous growthchallenge in nearly all sectors: Poverty is endemic, deforestation is continuing, and infant mortality relics high. Still, most development efforts— whether by government or nongovernmental organizations—focus resources and expertise on one particular area, such as reforestation or humanizing maternal and child health, rather than integrating interrelated concerns into a holistic approach. While a number of policies and programs linking population, health, and environment concerns have been tried in Kenya, an assessment of the overall “state of integration” had not been undertaken until recently (see Box 1). Thelessons from this assessment, undertaken by the National Coordinating Agency for Population and Development and the University of Nairobi, suggest that integrated programs require greater efforts in planning, coordination, and communication, but they can yield substantial rewards for communities and the environment, including reduced dependence on forest resources, greater food security, cleaner drinking water, and increased access to health services. Kenya’s development history has been unsteady since the country gained its independence from Great Britain in 1963. There has been some progress in recent years, however. Education reforms, such as free and compulsory education in primary schools, have translated into more children in school with a good balance between girls and boys.
Kenya has developed a national sell abroad strategy which, in order to avoid over reliance and the associated vagaries, focus on diversifying together the export products and markets. The strategy focuses on increasing competitiveness of Kenyan products and addressing productivity issues such as infrastructure improvement and labour.
Kenya successfully concluded a three year international monetary fund extended credit facility program, which disbursed $750 million helping the government to boost international reserves and to gradually reduce fiscal deficits to lower the public debt burden. Kenya’s exports to the region are dominated by artificial and semi-manufactured products, including refined petroleum products, metal scrap, wood manufactures, beer, cigarettes, oils, perfumes, polishing and cleaning arrangements, medicinal and pharmaceutical products, disinfectants, insecticides, paper and paperboard, articles ofplastic, consumer products and fabrics. However, Kenya also exports agricultural products to the region such as raw green maize among other products.
Kenya has a metal sector making a variety of down streams products from local and imported steel scrap, steel billets and hot rolled coils. Kenya imports steels billets, coils, wire rod and wire, sheets, steel scrap and pig iron. The nation possessed a broad-based metal products sector with various independent commerce, foundry and metalwork workshops. Opportunities exist in the development of a nuclear foundry making precision castings that are then processed into precision components. The new constitution encompasses issue such as greater independence for he judiciary, political decentralization, a new land law and greater legislative manage over the executive, and provides for the creation of a Supreme Court within a year after the constitution‘s (i.e., August 2011). While these reforms constitute significant progress, major questions remain as to how they will be implemented in fact. The fragile power sharing arrangement between President MwaiKibaki and Prime Minister RailaOdinga, formed in the violent aftermath of the 2007 election, has muddled through despite personal and ethnic antagonisms between the major actors involved.
Kenya Defense Forces has also applied ST to its human resource development, logistics planning which has enhanced its operational and administrativeeffectiveness. It is to be noted that the Integrated Payroll and Personnel Database (IPPD) programme used as payroll management tool in civil service was an innovation of the Ministry of State for Defense. In order to develop into a regional force capable of coordinating national as well as sub regional security there is need to develop its capacity by way of developing its Defense industrial complex. Technology has enabled KDF to integrate it surveillance into one command and control centre.
Kenya has a four tier courts system – Magistrates, High Court, Court of Appeal andSupreme Court. Judicial proceedings have been criticized as slow, inefficient and sometimes are tainted by corruption. The courts are overloaded with lack of capacity caused by failure to invest adequately in technology and training. It is important tonote that there is currently an attempt to reform and transform the Judiciary to make it more efficient and increase transparency. Membership of COMESA and the EAC also provides recourse forappeals in treaty-specific areas. The Indian Legal system is one of the oldest and longest written set of laws in theworld. Our legal system has its roots in the legislature formulated during the British Raj era.The Indian legal system is formulated baring in mind the diversity of the country and with due respect to the religion, customs and traditions of the people. The Indian Legal system is one of the oldest and longest written set of laws in theworld.
West Bengal is a state in the eastern region ofIndia and is the nation'sfourth- most populous, with over 91 millioninhabitants.Spreadover34,267sq mi(88,750 km2), it is bordered by the countries ofBangladesh, NepalandBhutan, and the Indian states of Odisha, Jharkhand, Bihar, Sikkim, and Assam. The state capital is Kolkata. Together with the neighboring nation of Bangladesh and parts of the state of Tripura, it makes up the ethno-linguistic region of Bengal. A major agricultural producer, West Bengal is the sixth-largest contributor to India's net domestic product.Noted for its political activism, the state was ruled by democratically elected communist government for 34 years, starting from 1977. It is noted for its cultural activities and presence of cultural and educational institutions; the state capital Kolkata is known as the "cultural capital of India".
West Bengal's capital Kolkata—as the former capital of India—was the birthplace of modern Indian literary and artistic thought, and is referred to as the "cultural [or literary] capital of India".The presence of paras, which are neighborhoods that possess a strong sense of community, is characteristic of West Bengal. Typically, each para has its own community club and, on occasion, a playing field.[ Residents engage in addas, or leisurely chats, that often take the form of freestyle intellectual conversation. West Bengal has a long tradition of popular literature, music and drama largely based on Bengali folklore and Hindu epics and Puranas. Religion, especially Hinduism, the principal religion at 72.5% of the total population, plays a vital role in the culture of West Bengal. Durga Puja, a five-day annual autumnal celebration of Hindu goddess Durga’s victory over Mahishasura, a Minotaur-like demon, is the biggestfestival of the state. The Festival of Kali, the guardian deity of Bengal, is also celebrated with great enthusiasm. Other important festivals include the seasonal festivals introduced by Rabindranath Tagore, book fairs, film and drama festivals and traditional village fairs etc.
Keeping in mind the new Economic Policy, West Bengal formulated its Industrial Policy Resolution in 1994 with a view to secure faster and balanced economic development with the active cooperation of the private sector. The key features of West Bengal's present industrial policy are as follows: Appropriate foreign technology and investment are welcomed on mutually advantageous terms.The Government recognizes the importance and key role of Private, Public & Joint sectors in providing accelerated growth and in improvement and upgradation of industrial as well as social infrastructure.Basedupon the available opportunities and the potential of this region, the State Govt, has identified certain segments of industries as thrust areas for special attention viz Years after independence, West Bengal was still dependent on the central government for meeting its demands for food; food production remained stagnant and the Indian green revolution bypassed the state. However, there has been a significant spurt in food production since the 1980s, and the state now has a surplus of grains. The state's share of total industrial output in India was 9.8% in 1980–81, declining to 5% by 1997–98. However, the service sector has grown at a rate higher than the national rate.
The largest prostitution area in city isSonagachi.West Bengal was the first Indian state to constitute a Human Rights Commission of its ownith immense potential to emerge as one of the most attractive investment destinations for the Information Technology (IT) and Information Technology-enabled Services (ITeS) sectors. However, West Bengal was a late starter in this sector and presently it contributes only about 2.6% of India’s software turnover, providing employment to an estimated 1,00,000persons, concentrated in the Kolkata metropolitan area. The major IT/ITeS companies of thecountryoperate in the State, with the seven top companies generating about 70% of West Bengal’s IT revenues. A well-planned and effective strategy is required to encourage additional investments from large IT companies, to revitalize and tap the talent of home-grown entrepreneurs in the small and medium sector and to enable the spread of the industry to Tier II and Tier III locations. Ultimately, there is a necessity to move up the value-chain from merely providing services, to the development of products and registering IntellectualProperty Rights. West Bengal being the second most densely populated State, with pressure on its scarce land resource, the IT and ITeS industry provides the high employment potential per unit of land utilized and deserves to be promoted on a priority basis vis-a vis other industries.
The steel industry in west bengal have more opportunities in than kenya and gujarat. Because the transportation facility is better in west bengal. The cost of coal is low in west bengal because west bengal havemine of coal.