An Organisational Overview of JINDAL Steel & Power Ltd. (JSPL)

A Brief Introduction

Jindal Steel and Power Limited (JSPL) is steel and Energy Company based in New Delhi, India and a division of Jindal Group conglomerate. With an annual turnover of over US$4 billion, Jindal Steel & Power Limited (JSPL) is a part of about US$ 12 billion diversified O. P. Jindal Group.The technology-driven group employs over 50,000 people across the globe.

JSPL is a leading player in Steel, Power, Mining, Oil & Gas and Infrastructure. Mr. Naveen Jindal, the youngest son of the late Shri. O P Jindal, drives JSPL and its group companies Jindal Power Ltd, Jindal Petroleum Ltd., Jindal Cement Ltd. and Jindal Steel Bolivia. The company professes a belief in the concept of self-sufficiency. The company produces steel and power through backward integration from its own captive coal and iron-ore mines.

The Main Products - Steel and Power

The Origin

Jindal Steel and Power is a part of the Jindal Group, founded by O. P. Jindal, a first generation entrepreneur who started an indigenous single-unit steel plant in Hisar, Haryana in the year 1952. In 1964, he commissioned a pipe unit, Jindal India Limited followed by a large factory in 1969 under the name of Jindal Strips Limited, one of the earlier incarnations of his business empire. He also started the Company Orbits Strips Limited which was renamed as Jindal Steel and Power in 1998.

Shri Jindal envisioned a self-reliant India in every sector of industry. To fructify this vision, he gathered the latest technical know-how from around the world and strengthened his industrial establishment. He also believed that without the upliftment of weak and backward sections of the society, a nation can never prosper. Thus, he spent a lot of time in taking steps to alleviate poverty and boost the backward sections of the society.

After Shri O.P. Jindal's death in 2005, much of his assets were transferred to his wife, Savitri Jindal. Jindal Group's management was then split among his Four Sons with Naveen Jindal as theManaging Director of Jindal Steel and Power limited. His elder brother Sajjan Jindal, is currently the head of ASSOCHAM, an influential body of the Chambers of Commerce, and the head of JSW group.

HISTORY

The Jindal Group has emerged as one of India's most dynamic business Organizations over the last three decades. It has grown into a multi-national and multi-product steel conglomerate with business interests spanning across mining, power, industrial gases, port facilities and of course steel making.It has not only diversified into power generation but also into petroleum, infrastructure, diamond and high value metals & mineral exploration. Presently the group has manufacturing outfits across India, US, UK and Indonesia and mining concession in Chile, Bolivia, Indonesia & Mozambique and marketing representative's offices across the globe.

Growth has been a way of life for the Jindal Group and its motto all along has been 'Growth with a social conscience.' The group has already announced its intention to set up Greenfield steel plants and power plants in various states.

Vision Statement

'To be a globally admired organisation that enhances the quality of life of all stakeholders through sustainable industrial and business development.'

Mission Statement

We aspire to achieve business excellence through:

• The spirit of entrepreneurship and innovation

• Optimum utilization of resources

• Sustainable environment friendly procedures and practices

• The highest ethics and standards

• Hiring, developing and retaining the best people

• Maximising returns to stakeholders

• Positive impact on the communities we touch\

The CORE Values

• Passion for People 
• Business Excellence 
• Integrity, Ownership & Sense of Belonging
• Sustainable Development

The Key Strategic GOALS are:

1. Reduction in cost without compromising product quality
2. Meet the satisfaction of customers and widen market base through emphasis on special steel
3. Adhering to environmental statutory norms, conservation of resources and waste management

Products Offered

CAPACITY of PRODUCTS

FINANCIAL POSITION

ORGANISATIONAL STRUCTURE

JSPL has a hierarchical structure with 24 different levels:-

Executive Vice Chairman & M.D.

Vice Chairman & CEO

Deputy Managing Director

Executive Director

President

Executive Vice President

Senior Vice President

Vice President

Assistant Vice President

Senior General Manager

General Manager

Senior Deputy General Manager

Deputy General Manager

Assistant General Manager

Senior Manager

Manager

Deputy Manager

Assistant Manager

Executive                                                                                                 Engineer

Management Trainee                                                                                Graduate Engineer Trainee

Junior Executive                                                                                       Assistant Engineer/Overman

Officer                                                                                                     Senior Foreman/Trainee Engineer

Senior Assistant                                                                                       Foreman/Senior Supervisor

Assistant                                                                                                  Assistant Foreman/Supervisor

Such a structure leads to Bureaucracy as we have studied in Principles of Organisation Management.

FUTURE PLANS

CORPORATE SOCIAL RESPONSIBILITY

JSPL's CSR Policy aims at bringing about a radical transformation in the quality of life of people living in and around the operation areas of the company through positive intervention in social upliftment programs. Its key areas of focus are Health, Education, Woman Empowerment, Livelihood, Livestock Care, Drinking Water and Sanitation, Youth and Sports and Infrastructural Development.

JSPL's CSR strategy includes-

1. Development of Model Villages
2. Government, Corporate and Public participation
3. Address situational needs and demands of the villagers

To bring about a positive difference, JSPL has adopted 40 villages and contributes to the development of the regions through a more holistic effort. Amenities such as hospital, school, auditorium, etc. built here offer a better lifestyle.

OBSERVATIONS

JSPL is driven by a strong set of values and its motto has all along been 'Growth with a Social Conscience.' The Company's strength has been the dynamic and aggressive approach of its leaders. They are the pioneers of various new technologies in India. The company has grown by diversifying into various sectors such as Petroleum, Coal Mining, etc.

JSPL has been rated as the Second Largest Value Creator in the World by BCG, and JSPL's financial mettle can be seen from the strong balance sheet of the recent years. With an escalation of 18.31% in total income and 4.66% in Profit After Tax, The books show strong financials.