Presentation onTATA STEEL Jamshedpur

By: Parveen SinghPGDM(2008-2010)

IMPORTANCE OF STEEL

STEELS OF YESTERDAY

DULLGREYCOMMODITYUSEFUL BUT UNINTERESTING\LIMITED STRENGTH RANGEHEAVYPRONE TO RUST

STEEL OF TODAY

PRODUCT OF “BEAUTY”DURABLE,CORROSION RESISTANTENVIRONMENT FRIENDLYRECYCLABLE,REUSABLEBRANDED PRODUCTSCOMPLEX SHAPESWIDE COMBINATIONS OF

PROPERTIES

GLOBAL STEEL INDUSTRY

OUTLOOK:POSITIVE Global demand:950 mill

tones @6% Demand for flats in china:

imports for something Chinese steel

production:21% in 03,220 mill t+

Continuing consolidation

KEY CONCERNS STEEL sector-still

fragmented Volatile prices

-metallics

-iron ore

-coal Weaker dollar -↑costs in

$ Uncertainty : @demand

growth

THE REASON FOR PICKING TATA STEEL

• It is Asia’s first and India largest steel company in private sector.

• It is India’s 2nd largest and 2nd most profitable company in private sector.

• HR practices

Type : Public (BSE;NSE)

Headquarters : Jamshedpur,Jharkhand,India

Industry : Steel

Revenue : US$ 28.962 billion (2009)

Employees : 86,548 (2009)

THE FOUNDER-JAMSHETJI NUSSERWANJI TATA

• Gifted with the most extraordinary imagination and prescience.

• Born on 3rd march 1839.

• A pioneer in town planning, he was mainly responsible for modernizing Bombay .

• Died in 1904.

THE PIONEERS-SIR DORABJI TATA

• J N TATA had exhorted to his son to pursue and develop his life’s works; his elder son ,Dorab Tata carried out the bequest with scrupulous zeal, and distinction.

• Became the first chairman of TATA enterprises.

• He had a deep interest in people.• A great sportsman.

AN OVERVIEW

Established in 1907 by Jamsetji Nusserwanji Tata. Formerly known as TATA IRON AND STEEL COMPANY

LIMITED(TISCO) 28.1 million p.a. of crude steel production capacity. Ranked 315th on fortune global 500(post the Corus

acquisition). Listed in NSE and BSE. Headquartered in Jamshedpur,Jharkhand and registered

office in Mumbai ,India.

• Consistent with the vision of the founder JAMSHEDJI TATA; Tata steel strives to strengthen India’s industrial base through the effective utilization of men and material. The means envisaged to achieve this are high technology and productivity, consistent with modern management practices.

• Tata steel recognizes that honesty and integrity are essential ingredients of a strong and stable enterprises, profitability provides the main spark for economic activity.

• Over all the company seeks to scale heights of excellence in all that it does in an atmosphere free from fear, and one which encourages innovativeness and creativity.

• We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship.

• We make the difference through:• Our people, by fostering team work, nurturing talent, enhancing

leadership capability and acting with pace, pride and passion.• Our offer, by becoming the supplier of choice, delivering

premium products and services, and creating value with our customers.

• Our innovative approach, by developing leading edge solutions in technology, processes and products.

• Our conduct, by providing a safe working place, respecting the environment, caring for our communities and demonstrating high ethical standards.

Goals 2012

• Value Creation: Increase our return in invested Capital (ROIC) to 30%

from the current 16%.• Safety: Reduce Loss Time Injure Frequency (LTIF) to 0.4

compared to the current 1.7.• Environment: Reduce Carbon Dioxide(Co2) emissions to 1.5

Tones/tonne of liquid steel compared to the current 1.8T/tls.

• Employer of choice: Across all industries – to quartile

PRODUCTS

• Hot and cold rolled coils and sheets

• Galvanized sheets

• Tubes

• Wire rods

• Construction rebar’s

• Bearings

TOP 5 SHAREHOLDERS

NAME %age holdsTata sons limited 27.9Life insurance co. of India 10.15Tata motors 4.3Deutsche securities Mauritius ltd 1.97HSBC global investment funds a/cHSBC global investment fund Mauritius ltd 1.78

JOINT VENTURE Associates

INVESTMENTS

• NATIONAL

JHARKHAND

CHHATTISGARH

ORISSA

- KALINGANAGAR

-DHAMRA PORT

TAMIL NADU

• INTERNATIONAL

SOUTH AFRICA

AUSTRALIA

MOZAMBIQUE

IVORY COAST (W.AFRICA)

OMAN

VIETNAM

TATA STEEL : THE PATH FORWARD

• Dominant Asian low cost steel major

• Value addition through de-integrated production

• Dominating high end flats market in India

• Strong player in construction segment

• Alliances with leaders of steel technology

TATA STEEL FUTURE STRATEGIES

• Continuous improvement projects are being focus in all companies and businesses.

• Greenfield project in India are progressing.• Enhance there raw material security.• Greater emphasis on safety.• Plans to reduce CO2 emission to benchmark

levels.

STRATEGIC BUSINESS UNITS

BEARING DIVISIONFERRO ALLOYS AND MINERALS

DIVISIONAGRICO DIVISIONTATA GOWTH SHOP(TGS)TUBES DIVISIONWIRE DIVISION

CONCEPTS USED

• INORGANIC GROWTH

-the growth which is occurred by merger, ventures and acquisitions.

- TATA STEEL WITH CORUS.

• ORGANIC GROWTH

-company grows, by not going for mergers and ventures.

-focus on the customer (how to retain and how to make new customers)

SWOT ANALYSIS

STRENGTH

• Self sufficient in the case of major raw material iron ore.

• Very advanced research and development wing.

• Strong retail and distribution network .• Tata steel has been on the path of

accelerated growth with foray into several geographies and markets through aggressive mergers and acquisitions.

WEAKNESS

• Raw material for steel production are rapidly depleting and are non renewable.

• Steel production in India is hampered by power shortages

• Low labour productivity

• High costs of basic inputs and services

OPPORTUNITIES

• Enormous scope for increasing consumption.

• Unexplored rural market.

• Corus acquisition bring in a tremendous technological advantage by access to best practices in global steel industry.

• Booming infrastructure.

THREATS

• Rising of environmental costs due to the increased concerns on global warming.

• Threat of substitutes.

• Scarcity of non renewable raw material.

References :• “Turnaround and Transformation: Path to Global Competitiveness”,

Steel Authority of India Limited, September 1, 1999• Data available on www.tatasteel.com• “strategies for sustainable turnaround of Indian steel industry”,

http://www.ieindia.org/publish/mm/1003/oct03mm2.pdf, • S G Dastidar. “Reforms and Restructuring in Global Steel” , Iron and

Steel Review, December 2005

THANK YOU