1

INDUSTRIAL REPORT
ON
RSRM STEEL MILLS LTD.

Department of Accounting & Information Systems

Bangabandhu Sheikh Mujibur Rahman Science & Technology
University, Gopalganj-8100.
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Letter of submission
26th September, 2019.

Md. Abdul Mannan Khan

Chairman & Assistant Professor
Department of accounting and information systems.
Bangabandhu Sheikh Mujibur Rahman Science & Technology University Gopalganj-8100.

Subject: Submission of Industrial Report on “Production Process of Steel mills limited in

Bangladesh: A study on Ratanpur steel Re-rolling Mills Limited.”

Dear Sir,

It is my great pleasure to submit the industrial report titled “Production Process of Steel mills
limited in Bangladesh: A study on Ratanpur steel Re-rolling Mills Limited.” Under the course
“Industrial Tour & Report Presentation (AIS-478)” that is assigned uses a partial requirement of
BBA course. I am thankful to the department for allowing me the opportunity to do the formal
industrial report on this topic. The report has been completed by the knowledge that I have
gathered from the Primary & secondary Sources of Data. I am thankful to all those persons who
provided me important information and gave me valuable advice. Finally, I am truly grateful to
the department for giving me this nice opportunity to work on this industrial report, which I have
considered as a great chance for me to develop my concepts about the topics. Although I have
tried my best, certain mistakes and inconveniences may reside and for this I seek pardon and
hope the department will accept my apologies.

Yours obediently,

Saiful Islam
Id No: 2015111206
4thYear 1stSemester
Session: 2015-2016,
Department of accounting and information systems.
Bangabandhu Sheikh Mujibur Rahman Science & Technology University.
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Letter of acceptance

It is my pleasure to accept your work for preparing a industrial report on “Production Process of
Steel mills limited in Bangladesh: A study on Ratanpur steel Re-rolling Mills Limited.” I have
gone through the whole report. I think the report is highly informative & relevant. The report is
seemed original to me. I appreciate you for such a good work. I wish your every success in life.

With thanks

......................................
(Md. Abdul Mannan Khan)
Chairman & Assistant Professor
Department of accounting and information systems
Bangabandhu Sheikh Mujibur Rahman Science & Technology University Gopalganj-8100.
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Table of Content
Serial Particulars
1 Preface
2 Acknowledgement
3 Executive Summary

4 Introduction
5 Objective of the study
6 Methodology of the study
7 Limitation of the study

8 Historical Analysis
9 Background of the Company
10 Vision and value
11 Products
12 Management
13 Financial Policies and program
14 Location and Layout
15 Supply chain department
16 Quality control Department
17 Production Department
18 Marketing Department
19 Human Resource Department

20 Problems
21 Recommendations and suggestions
22 Conclusions
23 References
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PREFACE

Preparation of Industrial Tour report in BBA 8th semester is a mandatory task according to
Bangabandhu Sheikh Mujibur Rahman Science & Technology University academic curriculum.
Actually, our study system is limited in theories. We have very few opportunity of practical
task. So, this Industrial Tour program has been designed for the students of 8th semester to
acquire practical and special knowledge. Because students should have sound practical
knowledge about the current business world. In developed countries business schools give more
importance on practical knowledge. Keeping this fact in mind our curriculum is designed to
prepare the Industrial Tour report and that’s why I’ve made this report. My report concern about
Ratanpur Steel Re-rolling Mills Limited (RSRM).

To prepare this report I tried to gather authentic information related with the concept and current
practices of Ratanpor Steel Re-rolling Mills Limited (RSRM). I owe a profound sense of
gratitude to all the marvelous persons who have contributed directly or indirectly in preparing
this report. First of all, I’m highly pleased to our honorable sir Md. Abdul Mannan khan,
Assistant Professor of department of Accounting & Information Systems, Bangabandhu Sheikh
Mujibur Rahman Science & Technology University, for his perseverance, direct supervision and
hearty caring.

My hearty thanks also go to my all honorable teachers, friends and others who have helped me to
prepare this report. Without their support it would not be possible to prepare this report
successfully.
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ACKNOWLEDGEMENT

At the very outset I would like to pay my solemn gratitude to the “Almighty Creator ’’who has
turned all of my efforts into an end. I am really indebted to my honorable teachers. It is not my
own credit in this endeavor. I would like to extend my sincere regards & gratitude to my
honorable teachers whose kind’s guidance and assistance have enabled me to prepare this report.
I would like to express my deep appreciation & sincere gratitude and profound respect to our
honorable sir, Md. Abdul Mannan khan, Assistant Professor, Department of Accounting &
Information Systems, and Bangabandhu Sheikh Mujibur Rahman Science & Technology
University for his generous help, valuable guidance and useful suggestions in preparation of this
report. Sincere thanks to my friends who had given me necessary supports.
Finally, I am really grateful to all who have helped me directly or indirectly by providing the
information I had sought from them. I strongly say that without their helps it would be difficult
for me to prepare this report within this short time.
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Executive Summary

Steel is a basic raw material for infrastructural development and multiple other uses. The demand
for steel will inevitably grow in line with the country’s economic and infrastructural
development. Major buyers of mild steel and re-rolled products include individuals, government
and institutional buyers (developers). The government’s infrastructure building activities is an
important source of demand. Construction of bridge as well as public awareness and preference
is increasing for quality building materials to ensuring safety and better building construction;
more particularly, in recent time to save from earthquake. Due to growing consciousness among
buyers and the generic nature of the products; new manufactures with efficient and high quality
technology will dominate over the existing players using old technology, because of their quality
and price advantage. Ratanpur steel Re-rolling Mill (RSRM) ltd. is a public listed company
engaged in producing, distributing, and marketing different kinds of steel products. It is a top
position occupying company in the steel industry. Due to high quality tagged into the products, it
is growing very smartly in term of production, sale, assets, and operating earnings.
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OBJECTIVES OF THE STUDY

The main purpose of the industrial tour is to acquire knowledge about the production process of
an industry and find out the consistency and inconsistency between theoretical practical
knowledge that we acquired from an industry that is live. We also try to adjust with the gap to be
competent at the modern job market.

The areas on which we will give emphasis are:

 To know about the profile of RSRM

 To know the production systems of Ratanpor Steel Re-Rolling Mills Ltd.
 To have an idea about products and markets of RSRM.
 To locate the problems of production Problem of RSRM.
 To provide suggestion to improve the production process of the RSRM.

METHODOLOGY OF THE STUDY

This industrial tour is conclusive as well as descriptive in nature. Necessary statistical tools have
been applied to carry out the assigned study.

• A visit to the industry’s production process

• Making a formal question to the company officials.
• Discussion with high officials.
• Practical experience gained by studying.
• Finally, the collected data are classified, tabulated, interpreted, analyzed and Presented in the
form of research report thereafter.

SOURCE OF DATA:

 Published books, govt. publication.

 Annual report.
 Logging on the internet at https://rsrmbd.com/
 Recent report.
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Type of Data
Primary Data
I) Direct observations
II) Face to face conversation with the respective officials

Secondary Data
I) Study of files and Documents.
II) Information from Wikipedia.
III) Information from official website of RSRM Group.

Limitation of the Study

I tried my best to collect the maximum information from Ratanpor Steel Re-Rolling Mills Ltd.
But this report is not free from short faults. While me preparing this report I faced some
problems. These are as follows:

• My industrial tour is for only one day that is not enough to make a study successfully.
• Lack of adequate time also caused some constraints to my study.
• The rate of success of my study may be limited, as we may have failed to collect proper
information due to lack of our experience.
• Some data could not be collected for their confidentiality and official secrecy.
• Time is not sufficient for such type research.
• It is very difficult to discuss their marketing practices in separately.
• My personal limitation also contributes greatly in making the study less perfect then desired.

I, therefore, hope that the study will be evaluated subject to the recognition of the above-
mentioned shortcomings.
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Market Scenario of the Steel Industry

Ratanpur Steels and Rerolling Mills (RSRM), is a Chittagong-based manufacturer. The
RSRM was launched as a manual low-grade rod producer in 1984. But the company, which uses
scraps to produce billets, overhauled its manufacturing plant late last year to produce 75-grade
MS rod. Currently it holds 12% of the market share in steel re-rolling industry.

Rahim steel mills co. (pvt.) Ltd., backed by the energy and experience of its entrepreneurs, has
made a name for itself in the field of steel making and is now one of the leading Quality steel
manufacturing company in Bangladesh. It holds 10% of the current market share in this industry
at present.

Anwar Ispat, a sole concern of Anwar Group in Bangladesh, currently possess 15% of the
market share in steel re-rolling industry. Anwar Ispat Limited is amongst the leading re-rolling
mills in the country. Use of most modern fully automatic re-rolling mill and high quality
imported billets assures that the produce meets international quality parameters. Anwar Ispat
specializes only in ‘Graded’ products, 40 Grade and 60 Grade High Strength Deformed Bars
(HSD-Bars), which are superior to general bars / rods.

BSRM (Bangladesh Steel Re-rolling mills) always has a solid reputation in the local steel
market as one of the oldest establishments producing the quality rods available in the country.
This has enabled BSRM to command the premium prices and still retain the largest market share
in a highly fragmented industry with so many players. In the steel industry, BSRM is operating
as a subsidiary of the market leader in Re-rolling industry, experienced management team, State-
Of-The-Art Plant, Quality products, sound infrastructural arrangement and sound debt servicing
history of the Group. The first of its kind in the country, BSRM was set up to produce plain bars
for the construction industry. Since 1952 it has started its journey and has always been in the
leading position in the market.

Attaining the 35% of the market share of steels re-rolling industry, BSRM is in the leading
position. The nearest competitors are KSRM, Rahim Steel, RSRM, GPH Ispat, and Anwar Ispat
all consecutively holding 16%, 10%, 12%, 5%, and 15%. The rest 7% is of other companies.
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Bangladesh Steel Re-rolling

7% Mills BSRM
15% Kabir Steel Re-rolling Mills
35% KSRM
Rahim Steel
5%
Ratanpur Steel Re-rolling Mills
RSRM
GPH Ispat

12% Anwar Ispat

10% 16% Others

HISTORICAL BACKGROUND OF RSRM

Overview of the Company

Company Name
Ratanpur Steel Re-Rolling Mills Limited
Company Registration No.
C-15492 of 1985 to 1986
Legal from
Ratanpur Steel Re-Rolling Mills Limited was incorporated as a private limited company on
22nd April, 1986 under the Companies Act 1913 and subsequently converted into a public
limited company along with the subdivision of face value of shares from TK. 100 to TK. 10
each.
Location
Head Office:
Nahar Mansion,116 C.D.A Avenue, Muradpur, Chittagong.
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Factory Address
175-176 Baizid Bostami I/A, Baizid Bostami Road, Chittagong.
Board of Directors:
 Maksudur Rahman, Director
Managing Director  Marzanur Rahman,
 Md. Mizanur Rahman, Director
Director  Md. Younus Bhuiyan,
 Mrs. Shamsunahar Rahman,
Ratanpur Group started its operation in 1984 with its flagship company Ratanpur Steel Re-
Rolling Mills Ltd. (RSRM) to meet the growing demand for high quality deformed bars in the
market. The population boom created a housing crisis which led to numerous public and private
construction projects, creating a greater demand for our products. The success and goodwill
created by this company encouraged us to spread our wings into other markets and confront some
of the many problems that plagued our economy. Thus more enterprises were established so that
we can have a greater impact in the development of our country. With the passing of time our
operations expanded into the manufacturing of jute & quality billet, recycling of ships, providing
shipping services, real estate among many others.
Today Ratanpur Group comprises of seven successful ventures, some of which are competing in
both local and international markets to establish their foothold. Although our ventures have now
spread over diverse industries they are all still guided by that single guiding principle under
which RSRM began its operation, and that is to have a positive impact on the world as a whole so
that we can leave behind a better planet for children than the one we inherited.

Mission
We will continue to be the first name in the region’s steel industry by harnessing our assets
and resources to achieve profitable growth, operational and organizational excellence, and
good corporate citizenship.

Vision
To be the trend setter and the power force of the steel re-rolling industry.
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RSRM CORE VALUE

Sustainable growth: Consistent improvement in the quality of products and services, Efficiency
of process and profitability of business, continuously anticipating and responding to the changing
business and environmental needs using innovation , sharing knowledge and experience within
the organization.
Quality: Creating products and services valued by our customers , constantly improving our
processes through innovation and adopting best practices; reducing wastage ; minimizing cost;
investing in systems and technology and developing our people to build a highly capable
workforce.
Reliability: Be the preferred business partner of our customers and suppliers by offering quality
products; providing our best and timely services before, during and after the business
transactions; and honoring all our commitment despite challenges.
Trust: Preserve the faith and goodwill of all our stakeholders- customers, shareholders,
suppliers, employees, regulatory bodies, and society by adopting ethical and transparent business
practices.
Leadership: Be a role model, setting benchmark through our products, Processes and people;
constantly moving ahead of competition by differentiating our products, innovating our process,
increasing our market share and nurturing talent to develop leaders within the organization.
Social Responsibility: Acknowledge and fulfill our obligation towards the society by
undertaking initiatives for the general upliftment of the society, building capability and making
facilities available to the underprivileged.
Customer Satisfaction: Delight our external and internal customers at every stage of our
interaction with them by duly understanding their needs, offering them our best products and
services treating them respect and actively seeking.
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Product Line of RSRM

SL. Products Size

No.
1. DEFORMED BARS Xtreme-500 W 8 mm
10 mm to 25 mm
28 mm & 32 mm
2. DEFORMED BARS (GR-400) 8 mm
10 mm to 25 mm
28 mm & 32 mm
3. DEFORMED BARS (GR-300) 8 mm
10 mm to 25 mm
4. DEFORMED BARS (GR-75) 7 mm
DEFORMED BARS (GR-75) 5.7 mm
DEFORMED BARS (GR-75) 4.5 mm
5. M.S. ANGLE 38x38x3,4,5,&6 mm
M.S. ANGLE 50x50x4,5 &6 mm
M.S. ANGLE 63x63x5 &6 mm
M.S. ANGLE 75x75x5 & 6 mm
M.S. ANGLE 75x75x8 & 9mm
6. M.S. CHANNEL 100x50x5 mm
M.S. CHANNEL 75x50x5 mm
7. SHAFT 40
SHAFT 46
SHAFT 52
8. Wire Rod (Commercial) 5.5,6,6.35 & 8 mm
Wire Rod (WR-8) 70,76 & 80 mm
9. Spring Steel Flat Bar 70,76 & 80 mm

Detail Production Process

Production of high-tensile rebars and other deformed-
type long products for concrete reinforcement is a key
issue for countries where the construction of buildings
and infrastructures is growing. This type of product is
even more important for geographical areas with high
seismic activity.

The ideal answer to these needs is the most advanced

technologies for low-cost production of high-tensile
commercial steel long products. The Danieli QTB,
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processes, installed at the BSRM Steels Ltd rolling mills, is the most efficient available today to
produce these types of steel.

A fast growing building and infrastructure construction activity characterizes the economy of
Bangladesh which means increasing demand of high-tensile rebars and other deformed-type long
products for the concrete reinforcement.

The typical basic arrangement for such a plant foresees a rolling mill for production of high-
tensile deformed bars in straight bundles. The new rolling mill, that started rolling its first bars in
early March 2008, has introduced the latest long product hot-rolling technologies for the first
time in Banglagesh, making this plant the most advanced and highly-productive rolling mill in
the whole area.

The state-of-the-art bar mill, fed by a 75-tph pusher-type reheating furnace (supplied by
BENDOTTI), is basically composed of 18 SHS stands, QTB on-line rebar quenching & self-
tempering system, automatic cooling bed and finishing facilities for straight bars production.

Figure - R.S.R.M. Rolling mill layout.

The mill is designed to produce 8 to 38-mm-dia quenched and self tempered deformed bars for
reinforced concrete, at rates of up to 75-tph. The Danieli supply also included a complete water
treatment plant for the new rolling mill. Electricals, automation system and process control for
the rolling mill and auxiliary plants are from Danieli Automation.

Plant description and highlights

The mill is entirely made up of the latest generation Danieli
heavy-duty SHS housingless-type rolling stands, arranged in
H and V sequence for twist-free rolling at the roughing and
intermediate/pre-finishing area.

The last portion of the finishing mill, arranged in H-H

sequence, is specifically designed for the slit rolling process
for production of smaller size deformed bars.
Figure - SHS stands in operation at RSRM mill
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The multi-strand slitting system, performed at the finishing mill,

grants high output rates, enabling to reach the full reheating
furnace nominal capacity even with the smallest rebar size range.
This system is a combination of special roll pass design and
designated guide equipment to shape and longitudinally separate
the incoming rolled stock into two, three or four individual strands,
then simultaneously rolled down to the final rebar size at the
finishing mill stands.

The new mill slit rolls on 4, 3 and 2 strands, for production of 8-

mm, 10-mm, 12 and 14-mm-dia rebars, respectively, at speeds of up to 12.5 meters per second.

A multi-strand QTB line is provided at finishing stand delivery side, for on-line rebar quenching
and self tempering. This is a significant technological step-forward that will make possible
production of on-line treated high-tensile/wieldable rebar’s for the first time in Bangladesh.

The straight bars production outlet includes dividing shear

for multiple-length bars at cooling bed entry, 66-m-long
automatic walking beam type cooling bed with associated
feeding and delivery devices, bar cut-to-length system with
stationary cold shear, automatic bundling, weighing and
collecting facilities.

A. Xpower TMT 500W

According to European Steel Code EN 10002, Elongation at Maximum Force (EMF) test is
mandatory to measure the ductility of steel. Bangladesh Standard BDS: ISO: 6935-2 of 2009 also
requires EMF in Steel. Fatigue tests are conducted with the object of determining the number of
cyclic loadings steel can endure, within a stress range. RSRM Steels products were subjected to
5 million cyclic load reversals which were tested in UK. At present in Bangladesh RSRM is the
only company to ensure EMF and Fatigue Test in steel. Today their journey has been vindicated
by the overwhelming support of our loyal and dear customers who have put faith in our products.

Rsrm x-power tmt 500w chemical composition and mechanical properties comparing with other
international standards:
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Unique Feature of Xpower TMT 500W

1. High design yield strength of 500 Mpa (72500psi) (Min)

2. Requires 15% less steel in construction compared to Grade 60 rebar’s available in the market.

3. The bars have superior ductility and can be safely bent without cracking.

4. All bar sizes are rolled to a very close tolerance (possible on a DANIELI computerized rolling
mill) so that customers get more meters of steel per ton - more value for money without having
to sacrifice structural integrity.

5. De-scaled bars have better bonding with concrete and less wastage at site. Estimated savings:
0.5%

6. Xtreme bars are safely weld-able under field conditions. Another 0.5% to 1.5% of steel is
saved by avoiding large splices if the steel is welded. Our Xpower500W was tested for weld
ability by a global electrode manufacturer, in Bangladesh, Linde. They have published a
brochure to promote the unique welding features of Xpower500W, a rare honor for the
company.

7. The bars are needle-straight, thanks to the Danieli QTB process - no need for straightening on
the construction site.
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Summary Observations and Recommendations

According to the above observations we like to enclose the following

recommendation for the improvement:

 Expansion of forward and backward linkage through long term planning.

 As the new competitors are entering market with improved capacity BSRM should be
concern about capacity expansion.

 Should minimize the dependency on imported raw material.

 Maintain collaborative network for raw materials import thus use effectiveness in
purchase strategy.

 Arrange a utility management team as early as possible for continues operation.

 Huge market exposure is required to penetrate the market to limiting the fixed cost
burden.

 Always keep eye on development of innovative technology.

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CONCLUSION
The demand for steel is expected to continue to rise at a greater rate in the future in the line with
the country’s economical development and requirement for infrastructure, despite a bit slow
down in recent months in the real estate sector. However, RSRM continues to be a dominant
player in the market and market share remains above 12%.

The experience of preparing the project is a lifetime experience for us. Through this we got to
learn the real business scenario. We have learned how a company like RSRM manages its supply
chain to achieve the company goal.
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Reference:

Biswas, Dibakar. Assistant Manager, Business Development. RSRM.

Rahman,Anwar. Manager S&D. RSRM
Chopra & SMeindl.(2002) Supply Chain Management, 3rd Ed. New Delhi: Pearson Edu. inc.
Cravens. David. W & Piercy. Nigel F. (2003) Strategic Marketing, 7th Ed. Mcgraw Hill Higher
Education
Dwyer.F,Robert & Tanner Jr. Jone F. (2002) Business Marketing, 2nd Ed. Mcgraw Hill Higher
Education
Kotler, Philip. (2003) Marketing Management, 11th Ed. Pearson Edu. inc
Laaksonen.Toni, Pajunen. Kalle and others(1998) Co-evolution of trust and dependence in
customer–supplier relationships

Sheu.Jiuh-Biing & Hu.Tung-Lai (2009) Channel power, commitment and performance toward
sustainable channel relationship

Siu & Walsh (August 2008), Country Report: Bangladesh, UK, Economist Intelligence Unit.
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