sTRIVE final.pdf

Mr. J L Aggarwal: The steel industry
follows a number of operational benchmarks
aimed at reducing costs and increasing
productivity like
1. Energy consumption per tonne of steel
produced
2. Coke consumption per tonne of steel
produced
3. Make-up water consumption per tonne
of steel produced
4. Manpower cost per tonne of steel
produced
5. Yield of finished product as percent of
input
6. Percent of profit spent on Corporate
social responsibility
The Govt. of India has instituted an
institutional award called Prime Minister’s
Trophy for the best integrated steel plant in
the country and every year the performance
of all participating integrated steel plants is
judged by an expert panel on various bench
marks and a trophy awarded to the best
judged steel plant. The panel carries out an
extensive survey including cleanliness and
housekeeping, comparison of performance
parameters, benchmarks’ achievement,
labour productivity, CSR activities and
many other factors before announcing the
award.
Strive: India, the world's fourth-largest
steel producer, has been a net importer
since 2008. Don’t you think there are some
flaws in the current system?
Mr. J L Aggarwal: India is the fourth
largest steel producer in the world but the
per capita steel consumption in India is a
mere 57 kg (in 2011) as against the world
average of 206 kg. Considering the
country’s population and the lack of
infrastructure facilities there is a huge
demand of steel in the country. Although
many plans were announced by the Govt. of
India to increase the steel production
capacity in the country the actual
implementation on the ground has not been
commensurate with the plans. Although so
many MOUs have been made by the
different states for setting up of steel plants
not even 25% have actually been
implemented. This is obviously due to the
flaws in the system where even the serious
players like POSCO, Tatas and Mittal have
not been able to break grounds in Orissa. In
my opinion, the Govt. should lay more stress
on expanding the Steel capacity in Public
sector rather than giving mines to the private
sector.
Strive: What is the one advice you give to
young managers joining the
manufacturing industry?
Mr. J L Aggarwal: In spite of over 60 years
of independence we still remain a
developing nation. My advice to young
managers is that whatever career or
profession they choose, they should excel in
their work and also contribute towards
nation building.
21
NOVEMBER 2012