Born: 3 March 1839 Died: 19 May 1904

JAMSHEDJI TATA

1. INTRODUCTION
Contribution in the development of Indias economic growth: The Indian steel industry is more than 100 years old now. The first steel ingot was rolled on 16th February 1912 - a momentous day in the history of industrial India. Steel is crucial to the development of any modern economy and is considered to be the backbone of the human civilization. The level of per capita consumption of steel is treated as one of the important indicators of socio-economic development and living standard of the people in any country. It is a product of a large and technologically complex industry having strong forward

and backward linkages in terms of material flow and income gener ation. All major industrial economies are characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries in their initial stages of development India is the 7th Largest steel producer in the world, employing over 1/2 million people directly with a cumulative capital investment of around Rs.1 lakh crore. It is a core sector essential for economic and social development of the country and crucial for its defense. The Indian iron and steel industry contributes about Rs.8,000 crore to
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the national exchequer in the form o f e x c i s e a n d c u s t o m d u t i e s , a p a r t f r o m e a r n i n g f o r e i g n e x c h a n g e o f a p p r o x i m a t e l y R s . 3,000 crore through exports. Consumption of finished ste el grew by 5.9 % and increased to24.9 million tones. steel consumption is likely to increase at a rapid pace in future due to large investments planned in infrastructure development, increase urbanization and growth in key steel sectors i.e. automobile, construction and capital goods. The Indian steel industry has emerged as one of the core sectors in the Indian economy with a very significant impact on economic growth. India with its abundant availability of high-grade iron ore, the requisite technical bas e and cheap skilled labour is thus well placed for t h e d e v e l o p m e n t o f steel industry and to provide a strong manufacturing base f o r t h e metallurgical industries. The deregulated Indian steel industry is performing at its peak level in almost all spheres. The total production of finished steel from April 2004 to March 2005 has been estimated to be about 383.25 lakh tones as against the production of 369.57 lakh tones during the same p e r i o d l a s t y e a r s h o w i n g a n i n c r e a s e o f 3 . 7 % . T h e m o s t s p e c t a c u l a r a c h i e v e m e n t h a s , however, been recorded in export performance. Steel has so far proved to be the single key factor responsible for industrial production and t h e r e b y , f o r e c o n o m i c
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growth. And it is growing from strength to strength with n e w e r developments B o t h w i t h i n s t e e l m a k i n g p r a c t i c e a s w e l l a s engineering developments, which ask for more usage of steel. S o m u c h s o , t h a t e c o n o m i c d e v e l o p m e n t h a s b e c o m e almost synonymous with steel.

2. M a j o r H a p p e ni n g
Political: In the 1920s and 1930s, when it was still called Tata Iron and S t e e l C o m p a n y , T I S C O ' s largely tribal workers fought pitched battles with the European or Parsi management. Work conditions and the right to organize were important rallying issues, and over the years, the company developed a reputation for union-busting, often by violent means. The value of Dorabjis Expansion Programmed came to be appreciated only during the phase when world was reeling under the pressure of the Great Depression. The Tatas survived the depression and supplied nearly of the countrys steel requirements. By the Second World W a r , T a t a s production capacities had expanded enough to make their prices l o w e r t h a n those of steel produced in England raising them to an authoritarian position. B y t h e 1 9 8 0 s , t h e g o v e r n m e n t w a s c l e a r l y i n c o n t r o l o f what had come to be called the commanding heights of

economy. More than 45% of output in organized industry came from the public sector as well as bank and other long-lending institution. In 198182, eight of the largest firms in India were in the public sector, as were 24 out of the top 30 in terms of total capital employee. In this sense it

could be said that Nehrus goals when he had began the planning process had been achieved. But this s uccess has to be seen i n t h e context of the fact that industrial growth rates had lagged at a b o u t 4 % p e r a n n u m between 1964-65 and 1975-76.This rate was in sharp contrast to what was happening

in theA s i a n e c o n o m i e s a n d i n S o u t h e a s t A s i a . T h e s e c o u n t r i e s h a d a c h i e v e d c o n s i s t e n t h i g h growth by opening up their markets and by abandoning policies of import substitution. I n d i r a G a n d h i i n h e r s e c o n d stint as prime minister was not willing to inaugurate a new industrial policy that departed from the socialist patte rn put in place by her father. Yet she was far too astute not to recognize the signs of crises that were waiting in the wings. She m a d e t h e g e s t u r e t h a t h e r government supports the expansion and modernization of

t h e private sector. The basic elements of the new policy began to emerge against the background of the India Special Drawing Rights billion -dollar loan agreement with the International Monetary Fund to cope with the balance of payment deficits.

Tata Iron & Steel Company R a j i v G a n d h i - B o t h i n t e r n a l & e x t e r n a l f i n a n c e s h o r t a g e s w e r e w o r s e n i n g . T r a d e d e f i c i t increased from 10 billion in 1983-84 to Rs. 34 billion in 1985-86 so it became difficult to repay loan.

Economic: TATA Steel, formerly Tata Iron and Steel Company Ltd (Tisco), the company around which the entire township of Jamshedpur was built, was registered in Bombay (now Mumbai) on August 26, 1907. It had an initial capacity of 160,000 tones of pig iron, 100,000 tones of i n g o t s t e e l , 7 0 , 0 0 0 tones of rails, beams and shapes and 20,000 tones of bars, hoops a n d roids. It also had a powerhouse, auxiliary facilities and a laboratory. It was in 1955 that Tata S t e e l b e g a n i t s t w o m i l l i o n - t o n e e x p a n s i o n p r o g r a m m e d t h e l a r g e s t p r o j e c t i n t h e p r i v a t e sector at that time. The project was completed in December 1958. Beginning in the 1980s , the company undertook in various phases an ambitious modernization

programmed. The first phase, between 1981 and 1985, involved a total project cost of Rs.223 crores. This phase, among other things, saw the installation of two 130 tone LD converters, two 250 tone a day oxygen plants, a bar forging machine, two vertical twin -shaft lime kilns and a tar-dolo brick plant. Significantly, a six-strand billet caster and a 130tone vacuum arc refining unit were installed, that too in the integrated steel plant. The second phase (1985-1992), involving a project cost of Rs.780 crores, saw for the first t i m e i n I n d i a c o a l i n j e c t i o n i n b l a s t f u r n a c e s a n d c o k e o v e n b a t t e r y w i t h 5 4 o v e n s u s i n g stampcharging technology. Apart from this, a 0.3 mtpa (million tone per annum) wire rod mill, a 2.5 mtpa sinter plant, a bedding and blending plant and a waste recycling plant of 1mtpa were installed. (2) The cost of the third phase (1992-1996) of the project was a whopping Rs.3,600 crores, and that of the fourth phase (1996-2000) Rs.1,300 crores. The company recently commissioned its 1.2 mt (million tone) capacity Cold Rolling Mill Complex at a project cos t of Rs.1,600crores. This four-phase modernization programmed has enabled Tata Steel to be equipped with the most modern steel-making facilities in the world. As of today, the Tata Steel facility has a hot metal capacity of 3.8 mtpa and a crude steel capacity of 3.5 mtpa, corresponding to
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a salable steel capacity

of 3.4 mtpa.

Tata

Steel has

b e e n i n t h e f o r e f r o n t o f I n d i a s industrialization and an engine of growth. It is part of Tata Group, a prestigious, family -owned Indian multinational with 2005 revenues of $17.8 billion, the equivalent of about 2.8% of India's GDP. Tata Steel's acquisition of Corus was a marriage made in heaven. Tata acquired Corus, which is 4 times larger than its size and the largest steel producer in U . K . T h e d e a l , w h i c h c r e a t e s t h e w o r l d s f i f t h l a r g e s t s t e e l m a k e r , i s I n d i a s l a r g e s t e v e r foreign takeover and follow Mittal steels $31 billion acquisition of rival Arcelor in same year. Tata acquires corus on April 2007 for a price of $12 billion. The price per share was 608 pence, which is 33.6% higher the first offer which was 455 pence. For the fiscal year ended March 2006, the company generated revenues of $3,693.6million (IR17,144.22 Crores), an increase of 0.1% over the previous fiscal year. The company saw a n e t i n c o m e of $755.4 million a n i n c r e a s e o f 8 % o v e r f i s c a l 2 0 0 5 months (IR3,506.38 Crores),

Social:
Social responsiveness became integral to organizational objectives of Tata Steel, even before the company was established in 1907. In 1970, however, Tata Steel formally incorporated its commitment to the stakeholder concerns,

including those of the nation, and environment, in its Articles of Association. The Company shall have among its objectives the promotion and growth of the national economy through increased productivity, effective utilization

of m a t e r i a l s a n d m a n p o w e r r e s o u r c e s a n d c o n t i n u e d a p p l i c a t i o n o f m o d e r n s c i e n t i f i c a n d managerial techniques in keeping with the national aspirations, and the Company shall be mindful of its social and moral responsibilities to the consumers, employees, shareholders, society and the local community. For Jamsetji Tata, the progress of enterprise, welfare of p e o p l e a n d t h e h e a l t h o f t h e enterprise were inextricably linked. Wealth and the generation of wealth have never "been ends in themselves, but a means to an end, for the increased prosperity of India. Tata Steels efforts at environment management are well recognized. Its Steel Works in Jamshedpur, all its mines, collieries and manufacturing

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d i v i s i o n s i n i t s o u t l o c a t i o n s a r e certified to ISO-14001. Jamshedpur is the only town in the country which has an ISO-14001

certified service provider. Significant achievements b y t h e C o m p a n y i n c l u d e a n improvement in environment

a n d r e s o u r c e c o n s e r v a t i o n , i n c l u d i n g a r e d u c t i o n i n g r e e n house erosion, raw materials and water consumption. The Company has increased waste reuse and recycling.

The heritage of returning to society what they earn evoke s t r u s t a m o n g c o n s u m e r s , employees, shareholders and the community. This heritage will be continuously enriched by formalizing the high standards of behaviour expected from employees and companies. The TATA name is a unique asset representing Leadership with Trust. Leveraging this asset to enhance group synergy and become globally competitive is the route to sustained growtha n d l o n g t e r m s u c c e s s . V a l u e s T r u s t e e s h i p I n t e g r i t y R e s p e c t f o r I n d i v i d u a l C r e d i b i l i t y Excellence.

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3. Various Policies of Tata Steel

Quality Policy Safety Occupational Health and Environmental Policy Human Resource Policy Social Accountability Policy Corporate Social Responsibility Policy Drug & Alcohol Policy HIV+ & AIDS Control Policy Energy Policy

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Towards organization: Tata was the 1st company to amend its articles of association

including the clause of social welfare.

Towards shareholders: Equal participation, straight forward business policy.

Towards employees: Pioneer of P.F. scheme, free medical and workmens corporation fund.

Towards Society: India should not be a economic super power but a happy country. Towards government: Suggestions of economic reforms and high tax Payer Company.

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Towards consumers: Consumer is the king of market. Quality products & services timely solutions of problems T a t a S t e e l i s a s i g n a t o r y t o t h e U n i t e d N a t i o n s G l o b a l C o m p a c t , a n d a b i d e s b y i t s 9 principles that address issues on Human Rights, Labor Rights and Environment, etc

Tata Iron & Steel Company Plantation of 1 lakh trees in and around Mumbai in collaboration with the National Society of the Friends of the Trees S p e c i a l p r o j e c t w i t h M / s N E E R I , i n o r d e r t o a s s e s s t h e c a r r y i n g c a p a c i t y o f t h e region and to ensure sustainable development in the region. Technology: (5) Tata Steel has been fortunate to have leaders and a rich reservoir of committed people who could see clearly through the future and transformed the plant into a modern technological giant with the power of their meticulous envisioning, strategy and planning, through several modernization programmes having spent more than Rs. 70000 millions on e n v i r o n m e n t - friendly technologies since 1980.
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Installation of a modern Cold Rolling Mill Complex, built at global speed and cost, is not only the epitome of Tata Steels modernization programme, but also remains a global benchmark in project management of its kind. It is also worthwhile t o m e n t i o n t h a t t h e C o m p a n y l o s t dearly for their decision on the installation of

E O F (EnergyOptimizing Furnace) at Jamshedpur Works, and CR M ( C o l d R o l l i n g M i l l ) a t Gopalpur in Orrisa. T h e T a t a s m a d e a g r e a t contribution in manpower deve lopment field too. From the v e r y beginning the Tatas invested substantial time, money and

resources in training schemes. In1 9 2 1 , t h e J a m s h e d p u r T e c h n i c a l I n s t i t u t e w a s s e t u p w i t h a p u r p o s e t o r e p l a c e f o r e i g n technical experts with their Indian counterpart s. Furnished with super-

sophisticated labs, advanced training aids and other infrastructural facilities, the Technical Training Institutes

inJ a m s h e d p u r i s t o d a y o n e o f t h e b e s t i n t h e c o u n t r y . R e c e n t l y , a n e w M a n a g e m e n t Development Centre has been built at Dimna to impart advanced management training to middle and senior level managers in the Company.

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4. MODERNISATION PROGRAMME

Tata Iron & Steel Company Installation of a modern Cold Rolling Mill Complex, built at global speed and cost, is not o n l y t h e h i g h l i g h t o f
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Tata Steels modernization programme, but also remains a g l o b a l benchmark in project management of its kind. Besides, the Company has also completely r e v a m p e d i t s i n f o r m a t i o n t e c h n o l o g y infrastructure to suit its modernized plant. It

spentc l o s e t o R s . 4 0 c r o r e s o n S A P i m p l e m e n t a t i o n a l o n e . T a t a S t e e l s m o d e r n i z a t i o n programmers are detailed in the section, Technology at its Best of the chapter, Imperatives of Change Management.

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Natural disaster: Disaster Management & Relief

Tata Steel has a long history of providing relief dur i n g n a t u r a l c a l a m i t i e s . S o c i a l consciousness runs deep

down to the last employee of the Company. Every employee contributes to such causes, complemented by an equal, or more, amount from the

Company.B e s i d e s , e m p l o y e e s a l s o v o l u n t e e r t o a d m i n i s t e r r e l i e f o p e r a t i o n s a n d p r o v i d e d i s a s t e r management services to other agencies involved.

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Relief Operations
Tata Steels relief and rehabilitation programme, e x e c u t e d b y t h e T a t a R e l i e f committee, is carefully largely planned

and time-tested to counter unforeseen devastation caused by floods, drought and other natural calamities, serving both immediate and long term needs of those affected, by offering them food, medical aid, rehabilitation, etc. It has even designed and constructed buildings that can withstand natural calamities such as earthquakes. India is a developing country and its economy is growing v e r y f a s t . I n s t e a d o f t h i s economical growth there is need for infrastructure to sustain this growth. The Government envisions India becoming a developed nation by 2020 with a per capita GDP of $154010.F o r a n a t i o n t h a t i s e c o n o m i c a l l y s t r o n g , f r e e o f t h e problems of underdevelopment and plays a meaningful role in the world as befits a nation of over one b illion people, the groundwork would have to begin right now. The Indian steel industry will be required and is willing to play a critical role in achieving this target. I f t h e s t e e l industry gears up in about 3 to 4 years, Indian steel can be both i n I n d i a n a n d foreign markets. Steel industry has seen a sunrise after a

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bad and cloudy night. Worries of financial institutions are over and have taken an exposure in this sector. Indian government a s p l a n n e d f o r pumping in a lot of money in infrastructure in com ing years, h e n c e s t e e l consumption will go up manifold.

GDP per capita to increase from USD 2500 and USD 5000 in 2020

Population growth rate of 1.3 - 1.5%

Continuously improving macro economic factors

A strong demographic profile: with a large consumer base

Growing urbanization

Stable social and political environment

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5. FUTURE PROJECTS
Indian Steel production likely to triple in next 15 years National Steel Policy Projections

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Global crude steel consumption is projected to increase to a p p r o x i m a t e l y 1,730 mtpa by 2020, driven by developing countries, including China. While China is becoming the new source of demand, t h e d e v e l o p e d economies as a whole still remain the largest portion of the worlds steel consumption. (Chart-3)

Positive demand fundamentals in development economics. (Chart-3)

Roads and power: The existing road network needs to be expanded and strengthened considerably for reducing t r a n s a c t i o n c o s t s o f t h e I n d i a n s t e e l p r o d u c e r s . T h e s t e e l p l a n t s a n d m i n e s n e e d t o b e integrated with the on-going programmes of national highway development and also with the proposed rural road schemes for expanding the delivery chain of steel across the country, especially the rural areas. The additional

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requirement of power for the steel industry would be 7000 MW by 20192020, requiring an additional investment of Rs 24500 crore.

In order to achieve the goal of 110 million tones of steel production by 2019-20, the NSP s e e k s t o r e m o v e t h e s u p p l y - s i d e c o n s t r a i n t s t o t h e g r o w t h o f t h i s i n d u s t r y i n a n o p e n , globally integrated and competitive environment. The country would need an investment in the range of Rs.1 lakh to 1.2 lakh crore in creation of additional steel capacities by 2011-12.Related areas like mining and power will require an additional investment of Rs. 25,000

to3 0 , 0 0 0 c r o r e . F u r t h e r , t h e r e i s a n e e d t o r e t a i n f l e x i b i l i t i e s i n t h e f i n a n c i a l s y s t e m t o encourage innovation. There are m a n y a r e a s o f t e c h n o l o g y d e v e l o p m e n t a n d a d o p t i o n , which can be risky but also highly rewarding. Venture capitalism needs to be promoted at a greater pace for early adoption of emerging technologies.

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PEST Analysis of Steel Sector:

Political Factors: On 19th Nov. 2008, 5% import duty slapped on steel to save the domestic market. In Oct., the government also removed a 15% export duty on long steel products use by the construction of two sectors road and power. Present government commitment that to make India an economic super power for that they inspire globalization and brass industries to improve GDP growth rate 8% to 10%.Ministry of Steel had no scheme to implement directly till 10th Plan (2002-07). In the 11thPlan (2007- 12) a new scheme named Scheme for promotion of Research & Development in Iron and Steel sector has been included with a budgetary provision of Rs. 118.00 crore for promotion of research & development in the domestic iron and steel sector. The scheme is presently at formulation stage.

Tata Iron & Steel Company Changing In government policy increase competition which benefits to the consumers. Before BJP government as ruler in 1999, there were no benefits got by steel industry. After 1999 when BJP came the industrial people would
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have got the benefits from EXIM as tax relief. W h e n N a r e n d r a M o d i became the Chief Minister the steel industry has started growing rapidly and the profit increased by Rs 9 to Rs. 13 per Kg. The existing regime of liberalization, decontrol and deregulation of industry in the country has opened up new opportunities for the expansion of the steel industry. With a view to accelerating the growth of the steel sector and attaining the vision of India becoming a developed e c o n o m y b y 2 0 2 0 , t h e M i n i s t r y o f S t e e l f o r m u l a t e d a National Steel Policy (NSP) in 2005. The following are the salient features of the NSP :(1) The NSP set out a broad roadmap for the Indian Steel Industry in its journey towards reform, restructuring and globalization.( 2 ) T h e l o n g - t e r m goal of the NSP is that India should have a modern and efficient s t e e l industry of world standards, catering to diversified steel demand. The focus of the policy is to achieve global competitiveness not only in terms of cost, quality and product-mix but also in terms of global benchmarks of efficiency and productivity. Government has a scheme for routing the allocation of steel material from main producers like SAIL, RINL, and TATA STEEL to SSI units, and other government departments (up to30% of the total allocation) through the small scale industries corporation, SSICs and also through National Steel Industry Corporation NSIC where SSICs are
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either

defunct or

not

ine x i s t e n c e . I n o r d e r t o e n s u r e t h a t s m a l l s c a l e i n d u s t r i e s o b t a i n t h e s e r a w m a t e r i a l s a s reasonable prices, the government provided nominal handling charges of approximately Rs.5 0 0 p e r t o n e to the corporation so that the corporation supply the steel m a t e r i a l a s t h e doorstep of the SSI units. P o l i t i c a l c o m p u l s i o n s w e r e the only reason for steel companies to cut prices. Otherwise, steel prices have been looking up quite some time n ow and there has been good demand of s t e e l i n d o m e s t i c a s w e l l a s i n t e r n a t i o n a l m a r k e t s . I n s t e a d o f p r i c e s g o i n g u p , t h e y a r e declining. The government had recently effected a 5% customs duty cut on non-alloy steel. Steel prices to go up as Railways increases iron ore freight rates in a move that may increase input cost for steel Cos like Tata Steel, Essar, Jindal and Ispat Industries, Indian Railways has decided to increase the freight rate of iron ore by around5%. The decision would push up freight rates by about Rs 100-200 per tone depending on the distance. The decision was taken to soothe the inflationary pressure. The price of the ore comprises between 30% to 45% (depending on the kind of iron and steel) of the total price of steel. Currently, the price of steel is around $750-900 per tone in the global
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market. The government has been fighting inflation due to rise in prices of various raw materials, iron ore being one of them. The Railways transported 53.59 million tone of iron ore for exports in2007 -08

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6. Implementation of the National Steel Policy (NSP), 2005:

Tata Iron & Steel Company Freight equalization Scheme was withdrawn in January, 1992. However, with the coming up o f n e w s t e e l p l a n t s i n different parts of the country, iron and steel products are freely available in the domestic market. Recent years have witnessed

unprecedented turmoil in the global steel market.

The crisis in

the international steel market might be attributed to the misbala n c e between capacity, d e m a n d a n d p r o d u c t i o n a n d c o n s e q u e n t d r o p in prices. Throughout the world there is

ana p p a r e n t o v e r c a p a c i t y ( e s t i m a t e d t o b e b e t w e e n 1 0 0 M t - 1 5 0 M t ) i n t h e s t e e l s e c t o r . According to the IISI, the companies have been selling their products below costs to survive in global competition. Since 2001, while growth has been negative in most mature markets, Asia has maintained steady growth rate. The Asian production growth has mainly been driven by the surge in steel demand and production in China. The huge Chinese appetite for steel has led the 10.2%surge in output. The growth in Chinese steel demand, generated mainly by demand from infrastructure sector is a beacon for Indian steel since both the nations are comparable on many counts.

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(C) The Indian steel manufacturers are faced with some major problems and concerns, which w o r k a s i n h i b i t i n g f a c t o r s t o t h e i r e f f o r t t o w a r d s g a i n i n g t h e c o m p e t i t i v e e d g e . A f e w o f these are:

Unremunerative Prices: Stagnating demand, domestic oversupply and falling prices in the last few years have hit Indian steel makers. Barring the sporadic rise in demand in the recent months, it has suffered from unremunerative prices to the extent that companies have been finding it difficult to maintain capital costs.

Stagnating Demand for Steel: According to Mc-Kinsey and Co the domestic steel industryis set to witness a 33% over capacity in the hot rolled coil sector by the year 2003 when thedomestic capacity currently at 45%, in long products and semis is expected to drop at 22% by that year. The non-flat products are also likely to face an over capacity of over 21.4%.

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Lower Consumption: Steel consumption in India over a period of time has exhibited astrategy correlation to GDP growth (correlation coefficient of 0.9855 between 1960-1961and 19961997) and gross domestic capital formation (0.981).The correlation with GDCF has been 1.0 for the period FY 1994 to 1999. As investmentsdeclined from 1996-1997 onwards, steel consumption also decreased. Failure to DevelopTrade Especially International Trade . T h e c o u n t r i e s w h i c h h a v e a c h i e v e d m a j o r g r o w t h including growth in steel industry, like Japan, China and South Korea have largely used their trading houses to develop their markets abroad. In India, they have singularly failed to do so.As a result, Indian steel industry does not have a major presence even in the neighboringcountries.The reasons for the same include lack of profit motive, wrong scale of assets, little or no co-ordination between plants and markets, inappropriate logistics/locations, over-manning, poor investment

decisions, lack of innovation and inadequate investment in requisite areas.

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Slow Industry Growth: The linkage between the economic growth of a country and t h e growth of its steel industry is strong. The Indian steel industry is no exception. The growtho f t h e d o m e s t i c s t e e l i n d u s t r y b e t w e e n 1 9 7 0 and 1990 was similar to the growth of theeconomy, which as a whole was sluggish. This sluggish growth in the steel industry h a s resulted in enhanced rivalry among existing firms. As the industry is not growing the onlyo t h e r w a y t o g r o w i s b y i n c r e a s i n g o n e . s market share. Consequently, the Indian steelindustry has

witnessed spurts of price wars and heavy trade discounts, which h a s d o n e Indian steel industry no good.

Social Factors: Corporate Social Responsibility (CSR) has been to develop the v i l l a g e s a s m o d e l s t e e l villages. All profitable steel PSUs have made commitments to the cause of CSR and have e a r m a r k e d a t l e a s t 2 % o f their distributable surplus for CSR activities. The total budget allocated for CSR in respect of the PSUs for 2007 -08 is around R s . 2 3 0 . 0 0 c r o r e . C S R activities focusing on environmental care,
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education,

health

care, cultural efflorescence

and peripheral

development, family welfare, social initiatives and other measures are underway in the PSUs. In view of the calamity brought in by the floods in UP, Bihar and Assam, some of the PSUs organized immediate relief measures in these affected states SAIL, NMDC Ltd. and RINL contributed Rs.5 crore, Rs.4 crore and Rs.2 crore respectively towards the flood relief measures. All the main producers have been urged by the Ministry to adopt villages around their plant and as part of their CSR activity and h e l p . U s e o f s t e e l h a s b e e n emphasized in items such as storage beans, bullock carts, buildings such as school buildings, p a n c h a y a t h a l l s , h e a l t h centre buildings, water tanks, waiting sheds etc. 129 villages a r e being developed into model steel villages.

Child labour is the issues of small scale sector of the steel industry. Children were exploited by paying them low wages. A decision was taken to have at least one dealer in each district in order to make availabl esteel items to common man. In order to ensure the availability of commonly used items of steel in the rural areas across the countr y, SAIL and RINL are expanding their distribution networks at a fast pace

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with the objective of having dealers in all the districts of the country. P r e f e r e n c e f o r S C , S T a n d O B C ent and occupation.A s i d e i t s l o n g history, Tata Steel has written the book o n welfare measures i n I n d i a n Industry many of which, have been subsequently followed by others i

Safety Measures For improvement in the overall safety situation in the Iron & Steel industries in Indiafollowing remedial measures need to be taken up: Tightening the legal system so that any instance of violat i o n o f s a f e t y p o l i c y , whether sector, does not go by public sector The or private system

unpenalised.

of f a c t o r y i n s p e c t o r a t e , s a f e t y o f f i c e r s a n d l e g a l f r a me w o r k h a s t o b e r e f u r b i s h e d accordingly. There should be up-gradation in legal provisions to take care of changes intechnologies / work environment so that loopholes are plugged as far as possible.

OHS Management system as per ILO guidelines and OHSAS 1 8 0 0 1 s h o u l d b e adopted in all plants.
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In India, many outdated technologies viz., twin hearth furnace, ingot making etc. arestill being practiced in some steel plants. These processes are hazardous to personnelworking there and it is required to phase these out immediately to improve safety in such plants. Apart from this, new technological development will also facilitate attainment of safe work environment.

Fire modeling and hazard risk analysis should be done in a l l p l a n t s f o r b e t t e r assessment of inherent risk/ hazard:

Social Audit (2002-03) The Social Audit being reported, for the period 1991 2001, w a s c o n d u c t e d d u r i n g t h e period 2002- 03 within the framework of
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the same Terms of Reference as that of the 2ndSocial Audit. The Audit Panel comprised of the following members recommended by theBoard:

Ms. Pheroza Godrej Justice S. K. Mohanty

The late Justice D. N. Mehta (Retd.) (Chaired the Panel until June 2003, when he suddenly passed away)

Ms. Tarjani Vakil, MD, EXIM Bank (opted out during the initial phase of the Audit)The Company nominated Mr. Ajit Jha, Resident Representative, New Delhi, Tata Steel, as the Secretary and Chief, Co-ordination, 3rd Social Audit, to provide management support to the Audit Panel, and later in the evaluation process, his role mandated to be independent of intra-company domain. Subsequently, Mr. S. K. Suman, Head, Coordination, Tata Steel was nominated by the management to provide research and report assistance to the Tata Iron & Steel Company Panel. Mr.
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Jha and Mr. Suman assiduously checked the facts and figures contained in thisreport

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7. SWOT ANALYSIS
Earlier known as Tata Iron & Steel Company upto 2005 Strengths of TATA STEEL: 1. Mineral Reserves Tata Steel has two collieries in West Bokaro and Jharia, in the state of Jharkhand. The iron ore units are located in Noamundi, Joda and Katamandi in the states of Jharkhand and Orissa. Tata Steel Limited also has amanganese mines and dolomite quarries in Orissa. These mines are located at an approximate distance of 150kms from Jamshedpur, home to the steel company's manufacturing facility. The Steel Company's iron ore units produce 9 million tons per annum of various grades of high quality iron ore including rich blue dust ore. The company in India is having mines of 281 million tones reserves in its mines in Jharkhand and thus having minerals to cater its needs for more than 20 years. The company has also been acquiring stake overseas in Canada, Mozambique, Australia etc. to boast its reserves for clean coking coal which is rarely available in India.

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2. Management Team - Tata Steel has a highly credible management team who has displayed their skills in expanding the company through inorganic route. The company has successfully acquired Nat Steel of Indonesia, Millennium Steel of Thailand and more importantly Corus. The companys virtuosos of finance have been able to find innovative ways to tackle the companys bulgeoning debt and keep the bottom line in the green zone despite lowering demand and huge debts accumulated.

3. Information Technology - The entire mining operation of the Company is safeguarded against accident occurrence. Proactive measures are undertaken to ensure the employee's health and productivity through ergonomically designed work stations and by protecting them from occupational hazards. All its mines are ISO-14001 -Environmental Management System Certified. Tata Steel's collieries use 'Surpac', a state-of-the-art mine planning software that estimates the volume of coal in every seam. This software is coupled with qualitative detailing that focuses on output consistency. To maximize productivity and utilization, a voice and data equipped Global Positioning System is used, which helps to supervise mining activity for machine movement and engine status.
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4. Innovativeness of TATA Steel with respect to its competitors - Tata Steel has the lowest operating cost for steel manufacture in the world

Further it has displayed effective means in adopting an eco-friendly and sustainable approach towards the manufacture of steel thus Proactive measures are undertaken to ensure the employee's health and productivity through ergonomically designed work stations and by protecting them from occupational hazards.

5. Adaptability of the company in the fast change of the environment - Tata Steel has displayed immense agility in the recent past during the global financial tsunami. Its virtuosos of various fields have adopted various methods like lowering of production and even shutting down of steel plants owing to the lack of demand, managing the balance sheet efficiently etc. The company has 70% of its procurement of raw materials for its operations in Asia through long term contracts and so its margins can be shielded from the nuances of the volatility of the financial markets

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6. Brand value - The TATA brand owing to its highly ethical and a socialistic approach to business have made its name synonymous to trust. After the acquisition of Corus another powerful brand, the brand value of the company has enhanced further.

7. Corporate governance - Tata Steel has had impeccable record for corporate governance. It has set the benchmark in global corporate governance principles of transparency,

accountability and equity for others to follow. Tata Steel has been consistently receiving prestigious awards at both the national and the international arena. Recently it bagged the Best Governed Company Award for corporate practices presented by Asian Centre for Corporate Governance.

8. Excellent integration with Corus Corus has a great reserve of around2000 metallurgists and technology which could be exploited by Tata Steel on several fronts.

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9. Excellent procurement philosophy - Tata Steel has around 70% of its supplies through long term contracts. Thus it can be shielded from the volatility of the financial markets.

10. Spawning upon opportunities - Tata Steel has been amongst the earliestto spot the escalation in the demand for steel in the forthcoming years. It hashence invested heavily in the expansion of its existing facility at Jamshedpurand is setting up other green field projects at Orissa, Jharkhand etc

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8. BUSINESS PLAN
Tata Steel Consulting provides business planning services to a range of industrial sectors, including:

Iron and steel - all long and flat products Tube and pipe Foundry and forge products Rail products Iron ore mining Engineering steels Wire products Metal fabrication industries Steel distribution and service centres Ferro alloys The business planning group operates independently or in tandem with other groups within Tata Steel Consulting and sometimes in collaboration with external organisations such as management consultants and investment banks. As a result it
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can always call upon an exceptional range of skills and experience to meet the diverse requirements of its clients.

Clients The business planning group has assisted a broad range of clients, in public and private sectors, situated in a large number of countries.

Expertise Assignments undertaken are diverse in terms of the problems and issues addressed. Tata Steel Consulting has provided strategic assistance to numerous manufacturing companies.

Methodologies A wide range of expertise and methodologies is employed by the business planning consultancy group. The first stage of assignments often requires detailed analysis

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of market prospects for the client company. This can involve extensive interview programmes in the metals consuming sectors as well as economic and demand forecasts.

New Delhi: The world's seventh largest steel maker Tata Steel Ltd, a part of India's diversified business conglomerate Tata Sons Ltd, plans to sell its stake in various group companies, including Tata Motors Ltd, to raise fund for expansion and repay high cost loans, the Business Standard reported citing unidentified bankers. The steel major may garner as much as Rs 72 billion via selling its stake in group companies, the bankers told the paper. Presently, Tata Steel owns 5.6% equity stake, worth Rs 50.14 billion, in Tata Motors. Besides, it also holds 51% stake in Tata Sponge; 73.4% in Tinplate India; 54.5% in Tayo Rolls; 32.5% in TRF Ltd; 0.7% in Tata Power and 50% in Dhamra Ports.

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The steel making company may sell these stakes to the holding company Tata Sons Ltd to raise funds, which will be utilized for expansion in the Odisha state and repay higher cost loans, bankers told the daily. Early this year, Tata Steel was holding discussion with Adani Group to divest its holding in the Dhamra port project (Odisha), media reports said, adding that the company is now awaiting the Odisha government's approval to raise capacity so that it gets a better valuation for the loss-making port company. Tata Steel plans to spend around Rs 420 billion in its Odisha plant in two phases. Total expenditure for the phase I has risen up to Rs 240 billion from the earlier estimated Rs 190 billion on account of currency fluctuation and other cost overrun Tata Steel Europe has won an order to manufacture 60,000 tonnes of highquality rail for a new high-speed line linking the two holy cities of Makkah and Madinah in Saudi Arabia. The new railway will allow millions of pilgrims to cross the 444km between the two cities at speeds of 320kmh. The line will cross desert, withstanding temperatures ranging from freezing to 50C, as well as sand storms, flash flooding and shifting dunes, a statement said.

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Grard Glas, rail sector head for Tata Steel, said: "This is a prestigious project which will see the holy cities being linked by rail for the first time. "Tata Steel is delighted to be contributing to this high-speed line, which will have to overcome some major challenges presented by building a high-capacity rail line across some of the most extreme terrain in the world." Steel for the project will be made at Tata Steel's Scunthorpe plant in the UK before being rolled into rail in lengths of 25 metres both there and at the company's plant in Hayange, Northern France, he said. Work on producing the rail will start at the end of this year and is expected to continue throughout 2014. Tata Steel rail has already been used successfully in similarly challenging conditions for projects in Brazil and Mauritania, the statement added. Last year the Saudi Railways Organisation awarded the contract for the finalphase of completing, running and maintaining the Haramain HighSpeed Rail Project to a group of Spanish infrastructure, construction and technology companies.

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The new line is expected to carry around 160,000 people a day - and even more during the Hajj pilgrimage. They will be transported on a fleet of 35 new high-speed trains. The project started in 2009, with an estimated cost of more than 12bn. The new rail line is set to open to the public in late 2014 or early 2015. Besides the two holy cities, the line will have three other stops, two in Jeddah for commuters and one in Saudi Arabia's new King Abdullah Economic City, a residential, industrial and commercial macro-complex that is still being built. Spanish construction companies Copasa, Imathia and OHL are responsible for building the line's superstructure and the track bases, as well as for the line's mechanisms.

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9. BIBLIOGRAPHY:
Websites: (1) http://steel.nic.in/Perfomance%20budget%20(2005-06)Englishchap2.pdf (2) http://www.ieIndia.orgpdf8989MM104.pdf (3) http://article.wn.com (4) http://steel.nic.in/ (5) http://www.tatasteel.com (6) http://greenbussinesscentre.com/images/photos/Exp48.pdf (7) http://www.tatasteel.com/newsroom/awards.asp (8) http://www.ieIndia.orgpdf8989MM104.pdf (9) http://www.tatasteel.cominvestorrelations2002pdfsmda.pdf (10) http://steel.nic.in/Performance%20Budget%20(200506)Englishchap2.PDF (11) http://www.tatasteel.cominvestorrelationsan200708investor-presentation-feb0 8.pdf (12) http://www.slideshare.net/pankajhambarde/tata-corus-ppt-presentation (13) http://www.tata.com/company/Articles/inside.aspx?artid=KfibEhYKXcE

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