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INTRODUCTION

Staying competitive is the key to sustainability To maintain the position in this competitive and changing scenario, organizations have to keep side by side advancement of their technology, culture and new industry legislations. Providing proper Training to keep their employees, motivated and updated with new technologies and its trends, necessary to achieve the target/goal. Also learning new skills benefits the employees as they become a valued asset in any organization. Trained and motivated employees, who understand the specifics of business operations, are a sustainable competitive advantage. They will give any business a competitive edge by: Increasing productivity and standards in production, therefore boosting business reputation. Being able to undertake a greater variety of work and therefore allow you to expand or open up new markets. Assisting you to meet business objectives faster. Take advantage of new technologies

Regardless of the size or type of an industry or business, training can have a measurable impact on performance and the bottom line. Research shows that productivity increases while training takes place. Employees who receive formal training can be 230 per cent more productive than untrained colleagues who are working in the same role. (Source: Smith A., 2001, Return on Investment in Training: Research Readings NCVER (PDF, 359kb). High labour reputations. Page | 1 productivity increases business output and can open a greater share of the market or expand it by improving products, services and

INDUSTRY PROFILE
Industry profile helps to get an insight into the evolution of the industry and competitive dynamics prevalent in the market. It discusses the significant developments in the industry and analyses the key trends and issues. The profile provides inputs in strategic business planning of industry professionals. This profile is of immense help to management, consultants, analysts market research organizations and corporate advisors. Emphasis is given on the following key subject matters to accomplish the report. The status of global steel industry with steel production & consumption trends in different geographical regions and global steel trade scenario. Overview of Indian steel industry and its various characteristics vis a Vis global steel industry. Product wise and producer wise classification of India steel industry covering application of different downstream steel products. Exhaustive coverage of different steel manufacturing routes along with there comparison and other related process. Product wise demand supply analysis with consumption pattern of different steel products by various end user sectors. Indias contribution in global trade and influence of international steel prices on domestic steel process. Page | 2

Exhaustive analysis of different cost components with demands supply trend and overall costs of production pre tone.

Sector wise steel demand growth in future and our perspective on future demand supply scenario, prices and consolidation.

INDIAN STEEL INDUSTRY


Globally, crude steel production has attained an altitude of 1239.5 million tones (mt) in CY 06. Share of top ten steel producing countries was about 76.4% with china, leading the pea, contributing almost 34% and India ranked 7 th with a reasonable 3.5%. In the recent past a major swing has been observed in the global steel production trend with a shift from developed countries to developing countries. During CY 03 05 , the CAGR of steel production in developing economies like china (25.5%) and India (9.5%) was much higher than the CAGR of world steel production (8.1%). On the consumption aspect, globally, Indian has emerged as the 5th largest consumer of steel in CY 05. Indian steel industry is characterized by fragmentation, particularly in the downstream segment, with a large number of unorganized players. Energy intensiveness of Indian steel industry is highlighted by its consumption of about 10% and 27% of total electricity and coal consumed respectively by the entire Indian industry. Primary producers (integrated steel producers (ISPs)) in the country produce majority of flat products and secondary producers (mini steel plants) produce most of the long products. Globally, 65.4% of crude steel is produced by BF/BOF route, 31.7% by EAF route and rest by open Hearth method. In India, blast furnace/BOF route dominates with 41% share, followed by induction furnace at 31% EAF at 25% and COREX at 3%. In FY 06, domestic steel production was approx 43%mt. imports and exports as a percentage of steel produced stood at 8.8%(3.77mt) and 10.2%(4.35mt) respectively. In Page | 3

FY 06 India consumed about 38mt of steel infrastructure sector being the largest consumer. The demand for flat steel in the country is increasing with the growth in automobile and consumer durable industry. Cost of production of steel depends in technology empl9oyed for production and extent of backward integration sourcing of power and raw material. Typical power consumption per tones of steel produced ranges between 500 650 Kwh. Raw material accounts for 60% 70% and energy (coal and power) 25% - 30% of total cost of production. India has self sufficient in iron ore but for coking coal, coke and scrap it has to depend on imports. In FY 06, India produced about 166mt of iron ore out of which 66.3%mt was consumed by domestic steel producers and the rest was exported. The demand growth of scrap is expected to be lower because of substitution by spo9nage iron. Since 2005, out of totals global production of 56.05mt of sponge iron, India produced around 11.1%mt (19.8%). In line with production target of 110 mt of steel (national steel policy) by FY 20, many steel producers have announced their capacity expansion plans by signing MOUs with various state governments like Chattisgarh, Orrisa and Jharkhand. The steel producers are expected to add around 8mt of capacity by FY 08. We estimate that during 2006 09, demand for steel in the domestic market would grow at a CAGR of 8.4%. HR steel because of its widespread applicability is expected to grow at a VCAGR 17.5% during this period; major demand divers would be consumer durables, automobiles and construction. After latent scenario till 2003, international steel prices rose to touch record highs in early 2005, mainly driven by rapid growth in steel demand from developing economies. Domestically, steel prices of flat products follow the international trend. Globally, steel prices are expected to firm up with consumed growth in steel Page | 4

consumption. Further, the winds of consolidation have gathered pace with Arcelor Mittal merger and latest acquisition of Corus by Tata steel. The Indian steel industry has announced huge capacity expansions. With commissioning of these capaciti9es demand capacities ration is expected to d3ecline in FY 09 due to excess capacity.

INDIAN STEEL INDUSTRY 2009


Globally, the steel industry is facing the brunt of economic slowdown. Global crude steel production has declined by 1.1% in CY 08. dominant among nations, chinas crude steel production growths has also slowed down to 2.6% in cy 08 compared to 15.8%, recorded in CY 07 India which contributed about 4.1% to the worlds crude steel production in CY 08 has retained its position of the fifth largest crude steel producer in the world. However, domestic steel industry is also hit by the impending economic slowdown. This report on the Indian steel industry contains comprehensive data and analysis of the sector with our primar5y and secondary sources; we have captured exhaustive data on the various parameter of industry. We have also forecasted the future sector wise demand of finished steel. In addition, monthly updates included with the subscription to this report will help the user to keep abreast the latest developments.

OPPORTUNITIES IN INDIAN STEEL INDUSTRY


Indian steel industry has shown the second highest growth rate for steel production in Asia after China in 2006. With a GDP growth around 8% in 2005 and 06. Indian economy as well as the industrial development got a boost and this helped to shape the increasing steel demand and production in India. The report opportunities in India steel industry undertakes a detailed analysis of the forces that have shaped the Indian steel industry in order to predict the future trends and prospects. Page | 5

INDUSTY PERFORMANCE
The section gives a detailed analysis of steel industry in India. This section looks into the factors that have influenced the industry over as period of time, like steel production and raw materials, steel consumption and export import of steel products etc. The section also puts forth a comprehensive of the Indian steel industry.

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COMPANY PROFILE
Backed by 100 glorious years of experience in steel making, Tata Steel is the worlds 6th largest steel company with an existing annual crude steel production capacity of 30 Million Tones Per Annum (MTPA). Established in 1907, it is the first integrated steel plant in Asia and now the worlds second most geographically diversified producer and fortune 500 company. Tata Steel has a balanced global presence in over 50 developed European and fast growing Asian markets, with manufacturing units in 26 countries. It was the vision of the founder; Jamsetji Nusserwanji Tata., that on 27th February, 1908, the first stake was driven into the soil of Sakchi. His vision helped Tata Steel overcome several periods of adversity and strive to improve against all odds. Tata Steels Jamshedpur (India) Works has a crude steel production capacity of 6.8 MTPA which is slated to increase to 10 MTPA by 2010. The Company also has proposed three Greenfield steel projects in the states of Jharkhand, Orissa and Chhattisgarh in India with additional capacity of 23 MTPA and a Greenfield project in Vietnam. The iron ore mines and collieries in India give the Company a distinct advantage in raw material sourcing. Tata Steel is also striving towards raw materials security through joint ventures in Thailand, Australia, Mozambique, Ivory Coast (West Africa) and Oman. Tata Steel has signed an agreement with Steel Authority of India Limited to establish a 50:50 joint venture company for coal mining in India. Also, Tata Steel has bought 19.9% stake in New Millennium Capital Corporation, Canada for iron ore mining.

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Tata Steels vision is to be the global steel industry benchmark for Value Creation and Corporate Citizenship. Tata Steel India is the first integrated steel company in the world, outside Japan, to be awarded the Deming Application Prize 2008 for excellence in Total Quality Management.

FOUNDER

THEFOUNDER- J.N. TATA (1839-1904)

SIR DORABJI TATA (1839-1933)

J.R.D. TATA (1904-1993)

RATAN TATA
PRESENT CHAIRMAN OF TATA GROUPS.

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VISION
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.

MISSION
Consistent with the vision and values of the founder Jamsedji Tata, Tata Steel strives to Strengthen Indias industrial base through the effective utilization of staff and materials. The Means envisaged to achieve this are high technology and productivity, consistent with modern management practices .Tata Steel recognizes that while honesty and integrity are the essential ingredients of a strong and stable enterprise, profitability provides the main spark for economic activity. Overall, the Company seeks to scale the heights of excellence in all that it does in an atmosphere free from fear, and thereby reaffirms its faith in democratic value.

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BOARD OF DIRECTORS

Mr. R N Tata Mr. James Leng Mr. Nusli N Wadia Mr. S M Palia Mr. Suresh Krishna Mr. Ishaat Hussain Dr Jamshed J Irani Mr. Subodh Bhargava Mr. Jacobus Schraven Dr Anthony Hayward Mr. Andrew Robb Mr. Philippe Varin Mr. B Muthuraman Mr. Kirby Adams Mr. H M Nerurkar

Chairman Non - Executive Deputy Chairman Company Director Company Director Financial Institutions Nominee Board Member Board Member Board Member Non - Executive Independent Director Non - Executive Independent Director Non - Executive Independent Director Non - Executive Independent Director Managing Director Non - Executive Independent Director Executive Director, India and South East Asia Operations

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MANAGEMENT TEAM

Mr. B Muthuraman Mr. H M Nerurkar Mr. A D Baijal Mr. R P Singh Mr. Anand Sen Mr. Varun K Jha Mr. Om Narayan Mr. Partha Sengupta Mr. H Jha Mr. N K Misra Mr. B K Singh Mr. J C Bham

Managing Director Executive Director, India and South East Asia Operations Vice President & Tata Steel Group Director, Global Mineral Resources Vice President, Engineering Services & Projects Vice President, Flat Products & TQM Vice President, Chattisgarh Project Vice President, Shared Services Vice President, Corporate Services Vice President, Safety & Long Products Vice President & Tata Steel Group Head, M&A Vice President, Orissa Project Company Secretary

Mr. Koushik Chatterjee Group CFO, Tata Steel Mr. Abanindra M. Misra Vice President, Raw Materials & CSI

Mr.Radhakrishnan Nair Chief Human Resource Officer

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POLICIES OF TATA STEEL QUALITY POLICY


Tata Steel shall constantly strive to improve the quality of life of the communities it serves through excellence in all facets of its activities. This policy shall form the basis of establishing and reviewing the Quality Objectives. The policy will be to comply with all the requirements of the Quality Management Standard.

HUMAN RESOURCE POLICY


Tata Steel recognizes that its people are the primary source of its competitiveness. It is committed to equal employment opportunities for attracting the best available talent and ensuring a cosmopolitan workforce. It will pursue management practices designed to enrich the quality of life of its employees, develop their potential and maximize their productivity. It will aim at ensuring transparency, fairness and equity in all its dealing with its employees. Tata Steel will strive continuously to foster a climate of openness, mutual trust and teamwork

RESEARCH POLICY

Tata Steel believes that research provides the foundation for sustained, long-term, stakeholder delight. Tata Steel shall nurture and encourage innovative research in creative Page | 12

ambience to ensure that the competitive advantage in its overall business is retained and surpassed. Towards this goal, the Company commits itself to providing all necessary resources and facilities for use by motivated researchers of the highest caliber. Research in Tata Steel be aligned to the technological initiatives necessary to evolve and fulfill the overall business objectives of the Company.

SAFETY PRINCIPLE
Safety is line management responsibility. All injuries can be prevented. Felt concern and care for the employee on 24 hours safety shall be demonstrated by leaders. Employees shall be trained to work safely. Working safely shall be condition of employment. Every job shall be assessed for the risk involved and shall be carried out as per authorized procedures/ checklist/ necessary work permit and using necessary personal protective equipment.

SOCIAL ACCOUNTABILITY POLICY


Tata Steel, in accordance with its founding principles, will continue to improve the quality of life of its employees and the communities it serves. Tata Steel will conduct its business ever mindful of its social accountability, respecting applicable laws and with regard for human dignity. Tata Steel will positively impact and influence its partners in fostering a sense of social commitment for their stakeholders.

CORPORATE SOCIAL RESPONSIBILITY POLICY


Tata Steel believes that the primary purpose of the business is to improve the quality of life of people. Tata Steel will volunteer its resources to the extent it can reasonable afford, to sustain and improve healthy and prosperous environment and to improve the quality of life of the people of the area in which it operates. Page | 13

TATA STEEL (TUBES DIVISION)

The Tata Iron & Steel Company began its production in 1911. It was the culmination of the vision and foresight of Mr. Jamsedji Nusserwanji Tata, who untiringly strove to create an organization, that could provide India with the strength to stand on its own feet .Tata Pipes, today, is the most prominent brand in the tubes industry, with a wide network of distributors and retailers

FOUNDED
Steel Tube Technology opened up in India in the early 1950s with the establishment of the Indian Tube Company Ltd. (ITC), a joint venture between Tata Steel and Stewarts & Lloyds of UK (now a part of British Steel). After the disinvestments, by British Steel, ITC merged with Tata Steel to form the Tubes Division in 1985, which today is the leading "Welded Steel" Tube Company in India with a manufacturing capacity of 200,000 tones. The SBU [STRATEGIC BUSINESS UNIT] a profit centre of TATA STEEL LTD. is a leading steel tube producer in India, growing at a CAGR of 12 % SBU promoted in 1954 as INDIAN TUBE COMPANY by TATA STEEL in collaboration with M/s Stewarts and Lloyds of UK was merged with TATA STEEL in 1985 its turnover workforce and sales volume details in FY09 are presented:-

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Business segment Commercia l tubes Precision tubes Structural tubes

Volume(MT) 163082 67713 87175

Industry position 1 2 1

SBU market share 22% 16% 45%

Leading competitor JINDAL SURYA TI BHUSHAN BIHAR TUBES

Competitor market share 11% 8% 24% 13% 16%

TOTAL TURNOVER = 1639 (Rs.cr). TOTAL WORKFORCE = 1150


Consequent to the CORUS acquisition in 2007, TATA STEEL groups tubes capacity has increased by 1.2 million MT making it the 7th largest manufacturer of welded tubes in the world .CORUS manufacturing plants catered to similar market segments as that of tubes SBU India with added presence application is limited to tubes SBU, India. in the line pipes segment .the scope of this

OWNERSHIP
The Tubes SBU is a Strategic Business Unit of the Tata Steel Limited

CORPORATE GOALS 2012


Value creation: Increase our ROIC to 30 % from the current 16%. Safety: Reduce LTIFR to 0.4 compare to the current 1.7 Environment: Reduce co2 emissions to 1.5 tons of liquid steel compared to the current 1.8 T/tls Employer of choice: across all industries-top Quartile. Page | 15

PRODUDCT COMMERCIAL TUBES


The SBU stands no 1 by volume in this business. This industry is highly fragmented with more than 100 manufacturing units. With an aggregate capacity of over 21 lacks Mt .These tubes are basically black and galvanized pipes mostly used for plumbing and irrigation process. Its external radius is taken into measure.

STRUCTURAL TUBES
Tata structure stands no 1 in the business of steel hollow sections in India, with a market share of over 45 % in this segment. The industry of steel hollow sections comprises of two organized players and the rest are a part of the unorganized sector .the conventional sections are being replaced by steel hollow sections through better, efficient, and elegant designs. Hence, these are mostly used in architectural, industrial, general engineering, and infrastructural areas.

PRECISION TUBES
Tubes SBU is ranked second by volume in this business. Competitive intensity in this business can be seen in this industry comprises of 25 players with a production capacity of around 8 lakhs Mt per year and characterized by co existence of medium, large and small scale industry. Tubes SBU has the best capacity utilization of 100 % (excluding new mill which is under stabilization), compared to the industry average of around 70 %.).It is made by cold drawn hydro process. These are basically used in autoengineering, boiler, general engineering processes.

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OIL & GAS PIPES


As compare to the above three business, this is a distinct market segment with highly specialized plant and machinery, size ranges to fulfill customer requirement. Most of the key players are global in nature competing for various large line pipe projects across the world .Corus tube has significant Presence in large diameter (25 inch) primarily specialized in deep sea pipe line application .the other key global players in this segment are welspun, Tenaris and Arcelor Mittal.

HYDROFORMING
Hydrofoming uses fluid pressure in place of punch in a conventional tool set to form the parts into desired shape of die. It was widely use in US to produce engine cradles which was more than a million in one year. Same was followed in Europe by GENERAL MOTRS and FORD. The set up was established on JULY 2007 at TATA TUBES DIVISION, in Jamshedpur. And now TATA has adopted this production technique for making engine cradle for the latest product TATA NANO. Its application is Bus body, Hospital Equipment, Furniture, Gym equipments, Bicycle. Its attributes are Surface finish, ease of manipulation, high strength and bend ability. Tubes SBU manufacturers and delivers products, services and solutions in the following key market segments through the mechanisms shown in the figure below:

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Business segment Commercial tubes

Key market segment 1.plunbing 2.irrigation 3.process

products Black pipes ,galvanized pipes

Structural tubes

1.architechural 2.industrial 3.general engineering 4.infrastructiral

Rectangular, square and circular hollow section

Precision tubes

1.auto 2.boiler 3.general engineering

ERW as welded tubes , normalized tubes ,cold drawn tubes ,hydro formed tubes

Key services and solutions 1.Availability through replenishment 2.plumbing solutions 3.customised deliveries 1.turnkey solutions 2.customised products and deliveries 3.knowledge dissemination 4. application support 1.VMI 2.customised products and deliveries 3.full kit boiler delivery 4.web based orders 5 Early vendor involvement

Delivery mechanisms Direct and retail distribution network

Direct and BDP network, web portal

Direct and service centre network, web portal.

THREATS
Threats from substitutes in terms of plastic pipes some of the existing segment are getting replaced by plastic pipes (especially irrigation, plumbing) primarily in view of much lower cost Imports from chins tubes and tubular components Slowing down in demand in certain sub segments of auto /construction due to the meltdown in the world financial markets

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OPPORTUNITIES
India is witnessing significant growth in the construction industry with increasing usage of structural tubes ( including structural tubes ) .considering that steel cement usage ration in India stand as at .29 as compared to 1.2 in the developed countries we see a huge opportunity in structural tubes in the future. The tubes SBU is a ideally positioned to cater to the segment since we enjoy a first mover advantage. Indias growth into an auto component hub along with the entry of a no of global automotive majors is expected to result in a major growth in automotive tubes demand. The growing demand for transportation of oil and gas through pipelines vis-a-vis road transportation is expected to entail a favorable growth in demand of oil and gas pipes in India and worldwide as well.

TUBES SBU ASPIRATIONS


Aspiration element 1: Leadership in chosen markets Business segment Commercial tubes Measures to determine leadership Market share Customer satisfaction index Volume in process industry Market share Customer satisfaction index % revenue from new products Page | 19

Market segment Plumbing Irrigation Process

Precision tubes

Auto Boiler

Structural tubes

Architectural Industrial General engineering Infrastructure

Market share Customer satisfaction index

Aspiration element 2: Continuously seize opportunities for value creation Continuously seek opportunities to grow and deliver value creating products and services, this is enabled by: 1. strong knowledge of evolving the need of customers 2. understanding technological advances in the field of tube making continuously tracking the environment to seek new business opportunities New products and

application of structure Plans for oil and gas %revenue products ROIC from new

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Aspiration element 3: Grow with system and process The key to sustain profitable growth is to build an organization that will continuously reinvent its systems and process in tune with market needs and opportunities We will strive to internalize the principle embodied in TBEM,TOC & QMS to strengthen our systems and process TBEM/JNT scores Efficiency and effectiveness measures processes Best practices and application cases of key work

Aspiration element 4: Be a benchmark in corporate citizenship As a part of tata steel , a leading corporate citizen since inception ,will continue our efforts to engage our employees ,customers, suppliers and partners to Build a healthy and safe working CSR index environment Serve the key communities and society Page | 21 LTIFR TCOC implementation Employee engagement Employee volunteerism

Demonstrate and propagate the highest ethical standards

TECHNOLOGY
The Tata group has been a pioneer in adopting the most modern, state-of-the-art technologies for its businesses. The Tata Steel Tubes Division uses HFIW (High Frequency Induction Welding) mills to manufacture its tubes. It has an ERP in place to control the business, which seamlessly integrates the key functional units within the SBU.

MODERNIZATION
Tata Pipes has embarked upon a modernization programme to be a 1 million tone player by 2010. Various modernization programmes are on, which also include installation of new mills. The company envisages a considerable investment in new capacities. The advantages expected are the following: Improved Yields Significant Cost Reductions Higher Mill Availabilities Higher Mill Speeds Better Capability Improved Customer Satisfaction Induction of Modern Technology for Better Quality.

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The work situated at JSR has the following parts: 1. Continuous weld mill, using Fretz moon (FM) process, for the manufacturing of black and galvanized tubes. 2. (HFIW) high frequency induction weld tube mill, for black and galvanized tube and also rectangular and square hollow sections. 3. HFIW tube mill for precision tubes.

Why government and farmers prefer TATA PIPES


Compared to other substitute pipes, Tata pipes are easier to sink as also easier to maintain. They are impervious to attack by rodents Made from pure steel, state of the art HOT strip mill, so longitivity of the pipes are assured. Pure and consistent thick zinc coating both on the inside and outside of the pipe leads to enhanced corrosion resistance leads to longitivity and reliability More weight per length which means greater thickness per length that is longitivity and higher value for money.

GOVERNANCE
The Tubes Business Excellence Council acts as a governing council and provides guidance to the Tubes SBU .The composition of the team is of a cross-functional nature ,which brings to the table varied perspectives and a wide experiential learning, Page | 23

which benefits the Tubes SBU in terms of balanced , well deliberated and considered decisions;

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WORKFORCE PROFILE
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Tubes SBU have a workforce of 1362 nos. committed to achieving its Aspirations. The workforce profile is WORKFORCE PROFILE Avg.Age (Yrs,) Graduates Diploma Sec/ HSC Master Engineer Can Read & Write 2 257 261 200 Category Finance& Total 114 16 635 688 52 125 997 1150 260 P.G. 12 10 4 26 21 29 25

Qualification

Officer

45

23 3

21

11 9

Accounts

14 40 98 180

33 45 3 132 8

Supervisors 51 Workers Total Contract Employee 48 47.5 40

GENDER WISE BREAK UP

Category Officer Supervisors Workers Total Contract Employee 109 123 965

Male 5 2

Female

Total 114 125 997 1362 260

32 42 45

1320 215

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ORGANISATION OBJECTIVES
We aspire to be the global steel industry benchmark for value creation and corporate citizenship.We make 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 product and services and creating values with our customers. Our INNOVATIVE APPROACH, by developing leading edge solutions in technology, process and product. Our CONDUCT, by providing a safe working place, respecting the environment, caring for communities and demonstrating high ethical standards.

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DATA ANALYSIS & INTERPRETATION


After collecting the data, first of all score index is calculated. It is calculated by adding up the skills of each supervisor in the particular section. The figure obtained is expressed in terms of percentage. Skill gap is calculated for each department separately. In order to find the skill gap we firstly calculate the desired skill index, with the help of given formula: Desired skill index = (No. of employees * No. of modules)/100*0.75 Then the actual skill index is calculated, Actual skill index = Actual total quadrants/Total no. of employees*No. of modules. Skill gap is basically the difference from the desired score index & the actual score index obtained by surveying. The average of the % of actual skills gives the skill index of a mill. From the following tables the skill index of PT mills can be studied:

PT MILLS
DEPARTMENT PT FINISHING CR ERW HT SECTION HYDROFORMING NO.OF NO. OF DESIRED ACTUAL EXISTING EMPLOYEES MODULE SCORE SCORE GAP INDEX INDEX 6 2 7 1 3 12 10 10 12 12 0.54 0.15 0.63 0.99 0.27 0.49 0.19 0.45 0.11 0.29 0.05 -0.04 0.18 0.88 -0.02

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ON THE BASIS OF ABOVE CHART, WE HAVE DRAWN PT MILLS THE GRAPH BELOW

INFERENCE:

As depicted in the above graph, the beautiful green coloured

rounded pillars shows the desired level of skill index of each department under PT mill, whereas, the brown coloured rounded pillar shows the actual level of skill index of the relative departments. The desired level of PT Finishing is 0.54%, ERW is 0.63% ,HT section is 0.99%, CR is 0.15% and at last Hydroforming with 0.27%. The Actual level of PT Finishing is 0.49%, ERW is 0.45%, HT section is 0.11% ,CR is 0.19% and Hydroforming is 0.29%.

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THE ACTUAL EXISTING SKILL GAP GRAPH IS PLOTTED BELOW

INFERENCE:

After looking the above graph of skill gap of the different

departments of PT Mill, we can assess the training need of them. As we can see that the major Gap exists in HT sections with a value of 0.88. Again ERW department comes on second position with the value of 0.18. Then, comes PT Finishing with the value of 0.05.The other department such as CR and Hydroforming are above desired level with their respective values -0.04 and -0.02. Efforts should be made to cover up the massive skill gap in the above mentioned sections so that the mill productivity rises and result in a good profitability.

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THE CHART FOR ST MILLS IS DRAWN BELOW ON THE BASIS OF CALCULATION DONE

ST MILLS
DEPARTMENT STP FINISHING STP WAREHOUSE PICK&GALV. HFIW NO.OF NO. OF DESIRED ACTUAL EMPLOYEES MODULE SCORE SCORE INDEX INDEX 6 12 0.54 0.52 2 4 4 12 12 10 0.18 0.36 0.30 0.19 0.35 0.33 EXISTING GAP 0.02 -0.01 0.01 -0.03

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ON THE BASIS OF ABOVE CHART, WE HAVE PLOTTED THE GRAPH BELOW

INFERENCE:

As depicted in the above graph, the blue coloured round pillar

indicates the desired level of the skill index and the red coloured one shows the actual level of skill index of the relevant department under ST MILL. We have obtained the desired level of skill level index of STP Finishing as the value of 0.54 whereas its actual level of index is 0.52. Same with STP Warehouse with desired level of skill index of value 0.18 and its actual index is 0.19. Again with Pick & Galv. With desired of 0.36 and actual of 0.35. And with HFIW with desired as 0.30 and actual as 0.33. On the basis of above values, we are able to find out the existing gap. Actual existing GAP is calculated by subtracting actual from desired one.

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THE EXISTING GAP GRAPH IS PLOTTED BELOW

INFERENCE:
values of such;

In the graph shown above, we can assess that every department

under ST Mill have a little variation from the desired level of skill index. They have STP Finishing Pick & Galv. HFIW = 0.02 = -0.01 = -0.03

STP Warehouse = 0.01

So, it shows that supervisors of different departments under ST Mill are skilful but such survey should be regularly designed after a defined time interval which will result in accumulating actual index of critical skill.

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THE CHART OF UTILITY AND MAINTENANCE DEPARTMENT IS DRAWN

UTILITY & MAINTENANCE


DEPARTMENT STP MECH. STP ELEC. PT MECH. PT ELEC. M\C SHOP REFRACTORIE S DG & G EE&I NO.OF NO. OF DESIRED ACTUAL EXISTING EMPLOYEES MODULE SCORE SCORE GAP INDEX INDEX 9 6 12 5 5 1 7 18 12 12 12 12 12 12 10 12 0.81 0.54 1.08 0.45 0.45 0.09 0.47 1.62 0.93 0.62 0.96 0.41 0.34 0.09 0.52 1.86 -0.12 -0.08 0.12 0.04 0.11 0.00 -0.05 -0.24

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THE GRAPH ON UTILITY & MAINTAINENCE HAS BEEN PLOTTED

INFERENCE:
On the basis of above graph, we can see the values of different departments under the Utility and Maintenance, one axis shows department whereas another shows value of index. Desired level of skill index of STP Mech. = 0.81 whereas, Actual level of skill index of STP Mech. is 0.93. Same is with STP Elec. With desired value of 0.54 and Actual level of 0.62. PT Mech. has desired value of 1.08 and its actual level value of 0.96. PT Elec. Have desired value of 0.45 but its actual value is 0.41. Machine shops desired level is 0.45 but its actual value is 0.34. Refractories desired level of index is 0.09 whereas its actual value is 0.09. Dg and Garage has the desired level of 0.47 but its actual index is 0.52. EE&I have desired level of 1.62 but its actual value is calculated as1.86. Page | 35

Actual value of skill Gap is calculated by subtracting actual from desired.

THE GRAPH OF GAP HAS BEEN PLOTTED BELOW

INFERENCE:

From the graph, we observe that PT Mechanical and machine Shop

have the maximum Gap level of values 0.12 and 0.11 whereas PT Electrical comes next with a value of 0.04. Rest of the departments are upon the mark or we can say that they are at desired level. The last heading under which different departments are included is TUBE SERVICES whose chart has been drawn here;

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TUBE SERVICES
NO.OF NO. OF DEPARTMENT EMPLOYEES MODULE ENGG. & DEV. FINANCE TECHNOLOG Y SEVICES[STP] TECHNOLOG Y SERVICES[PT] SUPPLY CHAIN DEPT. 5 15 7 19 0 12 11 10 14 0 DESIRED ACTUAL EXISTING SCORE SCORE GAP INDEX INDEX 0.45 1.24 0.52 2.00 0 0.32 0.53 0.62 2.26 0 0.13 0.71 -0.10 -0.26 0

GRAPH ON THE BASIS OF ABOVE INFORMATION IS PLOTTED BELOW

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INFERENCE: On the basis of graph, we can assess that Engg. And Devlopment
scores actual skill level index of 0.32 and its desired level is 0.45 which has skill gap of value 0.13. Another department is Finance whose actual skill score is 0.53whereas its desired level is 1.23, hence it has gap of 0.71. A technology service plays a vital role in the organisation. Its actual skill level for technology services for ST is 0.52 and its desired level is 0.62. This is target score. Technology services for PT have scored desired level of 2.0 values but its actual calculated as 2.26 which are also to the mark. Now, Skill Gap is calculated by subtracting actual from desired value.

GRAPH OF EXISTING GAP IS PLOTTED HERE

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INFERENCE: On the basis of above graph, it is clear that Finance department scores
maximum gap with the value of 0.7, Engg. And development stands on second position with the value of 0.13. Other departments are above the desired level with the respective values Technology services {ST} -0.1 and Technology services {PT} 0.26. So, in order to bridge the existing gap, it is really very necessary to design some training modules on the basis of their developmental and their functional competencies.

Words of Supervisors;
There is lack of proper and scheduled training at defined time interval. There is less training on developmental areas. Assessment must be done at regular time interval.

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CONCLUSION
Planning for training must be done so that every supervisor should be given training according to their need at a defined time interval.

Training is an investment; either external trainer is called or supervisors are sent for external training. So, to avoid this, those supervisors who have scored 100% can be given target to train their subordinates.

Developmental functions are important areas to be taken care of which will help them to enhance their skill.

Since, the major gaps cannot be bridged at one time so there must be a designed classroom training for them on every weekends, as weekends are of half day.

Employees should be sent for training in their own functional area or for Apprenticeship Training to SNTI or JOTC and post-training feedback need to be captured. The training effectiveness on the job is also captured by the training department and discussed with department heads.

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BIBLIOGRAPHY
1) Book referred; Hand book of training and development Steve Truelove Aswathappa , K. - Human Resource Management, Tata McGraw Hill P.S.V.RAO - Text book of Human Resource Management

2) Website referred;
www.tatasteel.com www.tatatubes.com www.google.com www.wikepedia.com

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