Presentation on

TATA STEEL Jamshedpur

By: Parveen Singh
PGDM(2008-2010)
IMPORTANCE OF STEEL
 STEELS OF YESTERDAY
 DULL
 GREY
 COMMODITY
 USEFUL BUT UNINTERESTING\
 LIMITED STRENGTH RANGE
 HEAVY
 PRONE TO RUST
 STEEL OF TODAY
 PRODUCT OF “BEAUTY”
 DURABLE,CORROSION RESISTANT
 ENVIRONMENT FRIENDLY
 RECYCLABLE,REUSABLE
 BRANDED PRODUCTS
 COMPLEX SHAPES
 WIDE COMBINATIONS OF
PROPERTIES
 GLOBAL STEEL INDUSTRY
OUTLOOK:POSITIVE KEY CONCERNS
 Global demand:950 mill  STEEL sector-still
tones @6% fragmented
 Demand for flats in china:  Volatile prices
imports for something -metallics
 Chinese steel -iron ore
production:21% in 03,220 -coal
mill t+
 Weaker dollar -↑costs in
 Continuing consolidation
$
 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 holds
Tata sons limited 27.9
Life insurance co. of India 10.15
Tata motors 4.3
Deutsche securities Mauritius ltd 1.97
HSBC global investment funds a/c
HSBC global investment fund
Mauritius ltd 1.78
JOINT VENTURE Associates
 INVESTMENTS
• NATIONAL • INTERNATIONAL
JHARKHAND SOUTH AFRICA
CHHATTISGARH AUSTRALIA
ORISSA MOZAMBIQUE
- KALINGANAGAR IVORY COAST
-DHAMRA PORT (W.AFRICA)
TAMIL NADU 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 DIVISION
 FERRO ALLOYS AND MINERALS
DIVISION
 AGRICO DIVISION
 TATA GOWTH SHOP(TGS)
 TUBES DIVISION
 WIRE 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