TRIBHUVAN UNIVERSITY

INSTITUTE OF ENGINEERING
PULCHOWK CAMPUS

A
CASE STUDY
ON
TATA STEELS

SUBMITTED BY:
JAGDISH SHRESTHA
072MSTIM155

SUBMITTED TO
NAWARAJ BHATTARAI (PHD.)
TECHNOLOGY INNOVATION AND MANAGEMENT
DEPARTMENT OF MECHANICAL ENGINEERING

1. INTRODUCTION
Tata Steel was established in 1907. Tata Steel is Indias largest steel company with the capacity
of 25.6 million tones annually. It was also Asias first such enterprise. It is among the lowest cost
steel producer world wide. The capive raw material resources and state-of-the-art 5 million ton
plant at Jamshedpur, Jharkand, gives it a competitive edge over other steel players.
In order to be a global major, Tata Steel has acquired Corus (18 million ton), Natsteel Asia (2
million ton) and Millennium Steel( renamed Tata Steel Thailand-17 million ton) and is planning
more mergers and acquisitions in future. It plans to create manufacturing networks in eight
markets in South East Asia and Pacific countries.
The plant at Jamshedpur will also be expanded to 7 million tons by June 2008 and 10 million
ton by December 2010. The company will have a capacity of 50 million ton by 2015 through
organic growth. The Company has a wire manufacturing unit in Sri Lanka known as Lanka
Special Steel, and a joint venture in Thailand for limestone mining Sila Eastern.
The products are targeted at automobile sector and construction industry. They will emerge as a
major global player in wire business with manufacturing facilities in India, Sri Lanka and
Thailand.
Tata Steel products include hot and cold rolled coils and sheets, galvanized sheets, tubes, wire
rods, construction rebars, rings and bearings. To decommoditise steel, the company has
introduced brands like Tata Steelium, Tata Shaktee, Tata Tiscon, Tata Bearings, Tata Agrico, Tata
Wiron, Tata Pipes and Tata Stuctura. The companys Customer Value Management initiative
addresses the customer problems and provides solutions. The Retail Value Management
addresses the needs of distributors, retailers and end consumers. The company has opened steel
retail store- steel junction for steel shopping.

1.1.

Board of Directors

Tata steel has a well efficient board of directors, who have managed the company to achieve
higher productivity. The names of the directors and the designation they hold in the company are
given below briefly.
Mr. Ratan Tata

Chairman

Mr. James Leng

Non - Executive Deputy Chairman

Mr. Nusli N Wadia

Company Director

Mr. S.M Palia

Company Director

Mr. Suresh Krishna

Financial Institutions' Nominee

Mr. Ishaat Hussain

Board Member

Dr. Jamshed J Irani

Board Member

Mr. Subodh Bhargava

Board Member

Mr. Jacques Schraven

Non - Executive Independent Director

Dr. Anthony Haward

Non - Executive Independent Director

Mr. Philippe Varin

Non - Executive Non independent Director

Dr.T Mukherjee

Non Executive Director

Mr. B Muthuraman

Managing Director

Mr. Andrew Robb

Non Executive Independent Director

1.2.

Mergers and Acquisition

Tata steel over the past few years have been into Mergers & Acquisition with

major steel companies across the world. In 2005, Tata steel made its first major overseas
investment in Natsteel and later owing the whole 100% of the company. This led Tata steel to
enter into the South East Asia. In 2006, Tata steel acquired Millennium which further enhanced
its market position in South East Asia. In the same year Tata BlueScope Steel Limited was
formed as a 50:50 joint venture between Tata steel and BlueScope Australia. Tata Steel acquired
100% of the millennium companys share. Tata acquired Corus Group in financial year 2007 was
the biggest investment by an Indian company in an overseas venture. This acquisition has pushed
Tata steel into the sixth in terms of total production capacity.
Proportion
Company

Country

of

investment

Year
$ invested

activity

100%

USD 468m

Feb 2005

Thailand

67.1%

USD 167m

Apr 2006

UK

100 %

USD 12.2b

Jan 2007

of

Singapor
Nat Steel Asia

Millennium
Steel

Corus

1.3.

Corporate Social Responsibility

Tata Steel is a company that believes in values and social well being. It therefore has a strong and
active involvement in Corporate Social Responsibility, and is dedicated to the discharge of social
responsibilities to the community and the society at large, where industry is located.

Tata Steel was pioneers in setting up of labor welfare practice, even before it got mandated world
over. In 1912, it prepared a Memorandum of Health for the Steel City. The company conducted a
eight hour workday in 1912.
Medical aid in has been provided since 1915. A Welfare Department was initiated in 1917.
Leave with pay, provident fund, workmens compensation (1920) and maternity benefits (1928)
were also introduced.
Besides providing work for the unemployed the company took the decision to address the needs
of those who migrated to the locality in search of jobs. They supported entrepreneurship and
economic growth, in surrounding areas and later to other regions. The company extended a
helping hand to the rural poor empowering them with means for their livelihood.
At the same time, Tata Steel also addressed the basic need for health care, food, education and
income generation by developing rural infrastructure, empowering and other community welfare
programmes.
1.4.

Vision of TATA Steel

We aspire to be the global steel industry benchmark for Value Creation and Corporate
Citizenship
We make the difference through:
Our People: By fostering teamwork, 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 for our customers.
Our Innovative Approach: By developing leading edge solutions in technology, processes and
products.

Our Conduct: By providing a safe workplace, respecting the environment, caring for our
communities and demonstrating high ethical standards.
4

1.5.

Mission of TATA Steel

Consistent with the vision and values of the founder Jamsetji 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 values.

1.6.

Quality Vision 2016

We aspire to be the most trusted and preferred domestic supplier of value added steel with world
class quality of products and services.
1.7.

Values of Tata Steels

The Tata Group has always been driven by five core values:

Integrity. We must conduct our business fairly, with honesty and transparency.
Everything we do must stand the test of public scrutiny.

Understanding. We must be caring, show respect, compassion and humanity for our
colleagues and customers around the world, and always work for the benefit of the
communities we serve.

Excellence. We must constantly strive to achieve the highest possible standards in our
day-to-day work and in the quality of the goods and services we provide.

Unity. We must work cohesively with our colleagues across the group and with our
customers and partners around the world, building strong relationships based on tolerance,
understanding and mutual cooperation.

Responsibility. We must be responsible and responsive to the countries, communities

and environments in which we work, always ensuring that what comes from the people goes
back to the people many times over.

2. ANALYSIS
Parent Company: Tata Group
Category: Iron and Steel
Sector: Industrial Products
Tagline/ Slogan: Values stronger than steel
USP: The top ten global steel companies with annual crude steel capacity of over 28 million
tonnes per annum
2.1.

STP Analysis

Segment: Strip and Long steel products, Iron ore mining, Agricultural implements
Target group: Construction, automotive, infrastructure, capital goods
Positioning: The global steel industry benchmark for value creation and corporate citizenship
Key Players:
Arcelor Mittal ( Global)
BaoSteel ( China)
POSCO ( South Korea)
JFE Holdings ( Japan)
Local Players in India
SAIL
JSW Steel

2.2.

SWOT Analysis

Strength

Tata steel is the largest steel manufacturer in India and is the 6 th largest steel player
globally.
o The company is the largest producer of steel in India. It is the major supplier of
steel to the nation. Tata was previously ranked 56 th in the world. After the
acquisition of Corus, it moved ahead to 6th place in terms of production.

It is one of the lowest cost producers of steel and also the most efficient steel plant in the
world.
o They have direct access to raw material their cost of production is low compared
to other companies.

The acquirement of Corus enabled the company to upgrade its technology.

o With the acquisition of Corus, the company not only moved ahead in terms of its
production capacity but also in terms of its latest state of the art technology.

The company has backward integration in terms of raw materials such as iron ore and
coal. The company owns mines and coal fields which ensure that there is no fluctuation
in the price of raw material.
o Tata steel has its own coal mines which has led to easy access of raw material and
also to bring down the cost of production.

The company has a strong management team which focuses on expanding its presence
domestically as well as globally.
o The management team is one of the best among other companies. They have
efficient team which works to expand the company internationally.

The companys practices the best corporate governance in India which has helped the
firm in going for foreign acquisitions.
o The company has strictly followed the corporate norms. This has enabled them to
move ahead to acquire foreign companies.

Weakness

The acquisition of Corus group is difficult that expected.

o Corus group is one of the largest steel producers in UK. Tata steel management
had to make crucial decision. These decisions looked good in paper, but were
difficult to implement.

Equity dilution from acquisition of Corus would reduce its earning per share.
o The company has issued additional equity share in year 2007, which will have an
impact on the EPS. The value of the shares may come down.

Opportunities

India economy is fast growing in terms of steel consumption, giving a wider market
sector. India is second fastest growing economy after China.
o India is the second largest next to China, in terms of production of steel. China
leads the market by a huge margin, giving an opportunity for Tata steel to increase
its productivity and bridge the gap.

The nation is going through a transformation in infrastructure in terms of roads, ports,

airports.
o Many airports and other infrastructures are coming up in India, which will give a
good market for them domestically.

The consumer base is increasing

Threats

The price of steel in its peak and there can be a deflation in the price.
o Steel price has been inflating every year. There may come a period when the price
may start going downwards, which will affect the companys revenue.

There is no slowdown in the rate of production in China.

o Tata steel may have a chance to grab some part of market which China is
enjoying. But with Chinas production capacity going up every year, it is difficult
to get a bigger market share.

2.3.
2.3.1.
1.
2.
3.
2.3.2.
1.
2.
3.
4.
2.3.3.
1.
2.
3.
4.

Resource and Capabilities of Tata Steels

Tangible Resources
Financial resource
Physical Resource
Technological Resource
Intangible Resources
Reputational Resources
Research and Development
Organizational Culture
Human Resource
Capabilities:
Low cost manufacturing
Experienced Managing Team
Innovation Capability
Response to feedback from Customers

2.4.

PESTEL ANALYSIS OF TATA STEEL:

The PESTEL terms include the political, economic, socio-culture, environmental and legal
aspects from by which the company influenced. The growth or the progress of the particular
sector or the industry is depends upon these factors. These factors are important because these
factors are bound with each and every aspect of the society internally as well as externally.
2.4.1. POLITICAL ASPECT:
2.4.1.1.
MEANING OF THE POLITICAL ASPECT:
Political aspect means the aspect which includes the government intervention in the particular
sector or the for the company it is basically a political environment under which the company
have to perform in well manner to achieve the stability and target goals in sector under which the
business is running. This political aspect includes, taxation policy by which government decides
the various tax implication on the company it includes the import and export regulation and other
point which can be helpful for the growth of the company. Privatization and deregulation. The
next important aspect in the political factor is of international trade regulations in which the
government and various special ministry decides the various rules and regulations regarding the
international trade done by the company. Government may also introduce a general initiative
10

which can helpful in the encouragement of the business which is ultimately leads to the growth
of the company. Government stability is also one of the important factor in the business as the
many of the important rules and regulations are decided by the government regarding the
business it is important that the government should be stable in nature otherwise with change of
the government the policies introduced by the government may also change which can be lead
into instability in the business.it is also noted that the international stability is also important in
the growth of the business. International stability includes the no war situation and other things
which can be dangerous from the point of view of the company.
2.4.1.2.
POLITICAL FACTOR OF THE TATA STEEL:
2.4.1.2.1. INVESTMENT IN THE UNSTABLE POLITICAL COUNTRIES:
Though the Tata steel made the various acquisitions for the growth of the company and for the
reason of the expansion of the business they took a very high amount of risk by investing in the
countries like Bangladesh, Iran, and And Thailand. For example: the plan set up in the
Bangladesh is getting delayed by the question of gas supply, whereas the issue of lease of the
mining of the iron ore in the Iran country is responsible for the increase in the cost of the
production.
2.4.1.2.2. INFRASTRUCTURAL DEVELOPMENT IN THE INDIA:
Now a day's government is launching the various schemes for the development of the
infrastructure of roads and transport. Every year Tata steel and other steel industries in India
spends a huge amount on the freight and transportation with the launch of various schemes in
infrastructure company could be able to save some amount which company spends on the freight
and transportation.
2.4.1.2.3. EFFECTS OF THE LIBERLIZATION:
The various liberalization schemes launched by the government after the year 1991.when the
Indian economy opened globally, is responsible for the tremendous growth in the various sectors
but the particularly in this sector. Various features can be discussed as follows: The licensing is
required for the capacity creation which is removed Foreign equity investment got the
permission up to 74%. Reduction in import and tariff reduced from the 105%im year 19921993to 30% in the year 1996-1997. Apart from this restrictions on the import and export have
11

been reduced. These are the some important features of the liberalization policy which leads to
Tata steel to be on the growth path. Apart from this the mining policies of the government and
other policies helped the Tata steel in reduction of import a duty and export duty and other things
which are responsible for the high growth of the Tata steel industry globally.
2.4.2. ECONOMICAL FACTOR:
Another important aspect in the PESTEL ANALYSIS is of the economic point of view .the
growth and the stability of a particular company is depends on the economic conditions of the
country. It may be nation economy or international economy. Various factors are responsible for
the change in the economic conditions and with the change in these factors many times the
company also got affected if the economic condition is very unstable in the nature the business
may get affected from it as many times the business strategy got affected by this. The economic
aspect of pestel analysis includes market trends, inflation rate, demand and supply of the
particular commodity and globalization. If these factors are in unstable in nature the company
may face the tremendous loss. With the change in the economic conditions a company should
change its policy accordingly and to sustain in the depression period a detail research and survey
should be done by the particular country.
2.4.2.1.

ECONOMIC FACTOR OF TATA STEEL:

Two years back the United States economy faces the SUBPRIME CRISIS which affected the
each and every strong economy in a very negative way. During this period there was a very high
risk in the international capital markets regarding the liquidity. In the year 2007, many foreign
investments and equities got dampened because of the reduction in the confidence in the liquidity
and the returns on the investment. Due to the subprime crisis in us European markets faced the
problems of the recession this creates the bad impact on the Tata steel as the Netherlands, United
Kingdom and Germany are the main markets for the CORUS COMPANY.
Steel industry may got affected because of the cyclical economic condition because many
industries like automobiles, appliances and construction are depends on the steel industry and if
industries faces any kind of downturn in the economy Tata steel also may also face the losses.
Steel production process are completely dependent on the energy market which can affect the

12

Tata steel in the economic manner. With the acquisition of CORUS company gained the growth
prospective in nature but, the cost of acquisition goes beyond the financial expectations.

2.4.3. SOCIO-CULTURE FACTOR:

Socio-culture aspect means the achievements or the willingness of the company to do the welfare
of the people in society without the profit earning motive .it is deal with social responsibility .it
includes the initiatives taken by the company in the form of the skills, and attitudes towards work
and other aspects which can be dealed under the development of the society.
2.4.3.1.

SOCIO-CULTURE FACTOR OF TATA STEEL

TATA STEEL got awarded for the commitments in the business ethical behavior and improving
the lives of the employees and their families. For this purpose Tata steel got awarded by the
GOLDEN PEACOCK GLOBAL AWARD. TATA STEEL also focused to create the social
environment. They constantly made the improvements in the health issues, economic wellbeing
and education facilities provided to the nation. This policy works out in near 800 villages in
Jharkhand .Orissa and Chhattisgarh. Hospital on wheels is the basic innovation of the Tata's
whereas Tata is also responsible for the habitation in slum areas in urban developing cities.
2.4.4. TECHNOLOGICAL FACTOR :
Technological aspect in the pestel analysis means that how company is able to use the present
technologies in the productions process it can also state as how company is using the technology
for the maximum utilization of the resources. It includes the material process and it development,
speed in adaption of new technology, and software up gradation in the company for the
convenience.
2.4.4.1.

TECHNOLOGICAL FACTOR OF THE TATA STEEL:

Technological aspect should be always in the nature of changing as per the new circumstances.
Tata steel and the sail(steel authority of India ) started the E-PORTAL system in middle of year
13

2000.thistechnology is also known as the METAL JUNCTION which is helpful for not only to
Tata steel but also to entire industry. With the help of this technology e market is the biggest
market for the purchasing and selling of the steel in the world. To reduce the emersions of the
co2nin the environment the Tata steel is on with the research of the ultra-low carbon steel .Tata is
also engaged with the objective of the energy conservation schemes where Tata is doing research
to reduce the energy consumption in the production process.
2.4.5. ENVIRONMENTAL FACTOR;
Environmental aspect means how the company is protecting the environment from the pollution
and other factors which are harmful for the society and nature .it includes the pollution problem,
waste disposal methods of the company, noise control and other factors which can be included
under the environmental aspect.
2.4.5.1.

ENVIRONMENTAL FACTOR FOR THE TATA STEEL:

In the steel industry there is a major problem of the emersion of the co2 gas during the
production process which is extremely harmful for the nature and human being itself. Tata steel
is designing a programme in which Tata steel would be able to reduce the co2 emersion by 20 %.
The DHAMRA port is the joint venture of the LASRSEN AND TOURBO and TATA STEEL.
This joint venture came into existence for the protection of the Olive Ridley sea Turtles. These
project is established near the Orissa .DHAMRA port is also supporting for the saving in the
saltwater crocodiles as well as it is contributing the help to save the wildlife in india.it is also
providing the breeding grounds for the horse shoe crabs and other rare species of the reptiles and
amphibians.

2.4.6. LEGAL FACTOR:

Every company is bound with some internal and external rules and regulations which is helpful
for the smooth flow of the company. It also includes the international laws and regulations that
company is bound to follow it also include the safety and health regulations of the employees of
the company.

14

2.4.6.1.

LEGAL FACTOR OF THE TATA STEEL:

The main importance is given to the employee's safety at the work place Tata steel ensures the
EHS (ENVIRONMENTAL HEALTH AND SAFETY) under which the each and every
employee's activity is managed by the EHS framework. Along with this positive aspect the
company is also facing some legal problems. Though he Tata steel is not concern with the
problem of land acquisitions in singur west Bengal it is affecting the name of Tata. Unstable
government in Jharkhand and various tribal protestors are creating some legal issues for the Tata
steel. It should be noted that from past 100 years the company work is not disturbed because of
any kind of the strikes and internal issues. The introduction of provident fund is introduced by
the Tata steel in the year1920.1920 Tata introduced the leave pay scheme to the employees which
was actually applied later on in the year 1945 after the independence. Soon these schemes
introduced become the legal part of the INDIAN LAW.

2.5.

Growth Strategy

Companys long term strategy is to continue to pursue capacity expansion in India through
Greenfield projects as well including Orissa, Jharkhand and Chhattisgarh projects. Therefore the
India growth strategy remains a fundamental part of the long term strategy of the Tata Steel
Group. The strategic levers of the Group have remained the same over the last few years. The
current global economic scenario has only rephased some of these strategies in terms of timing
and speed. The four levers are
a) Making the European operations competitive by hastening the speed of the Weathering the
Storm and Fit for the Future program.
b) Quick completion of the expansion plans in India. The 3 mtpa project will be commissioned
by 2011 and will add significant value to the Group. Further expansion in India through the
Greenfield project in Orissa and Chhattisgarh are ongoing and their commencing will depend on
ground realities and iron ore allocation.
c) Investment in raw material assets to provide better raw material security especially to our
European operations.
15

d) Vigourous pursuit of continuous improvement across all our operations. Despite the current
slowdown in consolidation within the global steel industry, mergers and acquisitions remain a
critically important business strategy for most corporates. Steel analysts are expecting a new
wave of consolidation to take place in the next three years. Global giants are refocusing on
positive markets by applying their resources to the core business where they are most needed.
This creates opportunities to gain market share from competitors who diversify and split their
focus. Acquisitions and strategic alliances are also critical to strengthen, refocus and position
companies for increased growth and profitability. The Tata Steel Group is strongly pursuing its
long-term strategy of acquiring and developing mining projects for its raw material security for
iron ore and coking coal. The Group has been concentrating on the geographies that are
logistically favorable with respect to its plants in Europe and Asia.
2.6. Raw material strategy
One of the major problems faced in the steel sector is the availability of raw material. Tata Steel
in India is an integrated player, for the majority of its raw material requirements. However, raw
material self- sufficiency for the consolidated entity is at 25% post the Corus acquisition. It has
been the stated objective of the company to increase self-sufficiency of raw materials to 50% in
the medium to long term. Therefore company is acquiring new virgin sites with significant
resource potential & stocks or in terms of smaller existing ventures which can be quickly aligned
to the requirements in Europe. Riversdale Energy Mining Limited, holds an inferred reserve of
around 4 billion tons in one tenement, in Mozambique.

2.7.

Financing & Liquidity Strategy

For the global financial crisis, the company responded very quickly on many fronts and
financing was certainly one of them. Recognising the uncertain financing environment and the
fragile state of the global banking industry, company has focussed on both internal and external
levers. Primary importance is placed on conserving liquidity through reduced spend management
and sharp reduction in working capital levels. Also focus is given on improvement in the
16

productivity levels and reduction in overheads. On capital expenditure, company has reprioritised on the most value creating and critical projects and reworked the capital planning
strategy. On the external front, long term capital are raised which acts as a liquidity buffer in the
current circumstance. The above actions ensured that the Tata Steel Group had adequate liquidity
and also financial flexibility for growth and exigencies.
2.8.

Cost leadership & Differentiation Strategy

2.9.

Present
Strategic
Issues

2.10.

Global Leader/presence both in means of

Quality and Quantity.

Security & procurement of raw materials
Entering the new markets
Eliminating the RED color from balance sheet
Struggle to digest the big ticket global acquisitions
Leadership crisis within the company

Strategic focus

The strategic focus of the Company has been to increase the steelmaking capacity in excess of 50
million tons by 2015 through organic and inorganic growth. The key enablers identified to
achieve the strategic goal and to build a sustainable value centric culture are:
17

2.11.

Being the employer of choice

Oneness with the society
Leadership & talent management
Adaptability to changes in the external environment
Security of raw materials
Research & development and technological upgradation.
Branding
Financial prudence through capital stewardship &

performance

management.
Strategic Business Units

Apart from the main Steel Division, Tata Steel's operations are grouped under the following
Strategic
Business Units:
1. Bearings Division: Manufactures ball bearings, double row self-aligning bearings, magneto
bearings, clutch release bearings and tapered roller bearings for two wheelers, fans, water pumps,
etc.
2. Ferro Alloys and Minerals Division: Operates chrome mines and has units for making ferro
chrome and ferro manganese. It is one of the largest players in the global ferro chrome market.
3. Agrico Division: Tata Agrico is the first organised manufacturer in India of hand tools and
implements for application in agriculture.
4. Tata Growth Shop (TGS): Has designed, developed, manufactured, erected and commissioned
thousands of tonnes of equipment ranging from overhead cranes to high precision components,
including a rocket launch pad for the Indian Space and Research Organisation.
5. Tubes Division: The biggest steel tube manufacturer with the largest market share in India, it
aspires to strengthen its market presence by expanding and modernising its commercial and
precision tube manufacturing capacity.
6. Wire Division: A pioneer in the manufacture of steel wires in India, it produces coated and
uncoated wires, branded as Tata Wiron. The division also operates a wholly owned subsidiary in

18

Sri Lanka.
Joint Ventures, Mergers & Acquisitions
1. Corus: Europes second largest steel maker with operations in the UK and mainland Europe
and over 40,000 employees worldwide. Its long and strip products cater to the construction,
automotive, packaging, and engineering and other markets worldwide. Coruss takeover was the
one of the biggest merger in steel industry for which TATA was paying 608 pence per share
which is seven times of is original value.
2. Tinplate Company of India Limited (TCIL): With a market share of over 35%, it is the
industry leader in India.
3. Tayo Rolls Limited: India's leading roll manufacturer and supplier, the company produces rolls
which find application in integrated steel plants.
4. Tata Ryerson Limited (TRYL): TRYL Is in the business of steel processing and distribution.
5. Tata Refractories Limited (TRL): It produces High Alumina, Basic, Dolomite, Silica and
Monolithic Refractories and offers design, procurement and re-lining applications services.
6. Tata Sponge Iron Limited (TSIL): TSIL is the first Indian sponge iron plant based on Tata
Steel's Direct Reduction Technology.
7. Tata Metaliks: Amongst the top wealth creating companies (EVA+) in the country, Tata
Metaliks is engaged in the business of manufacturing and selling foundry grade pig iron.
8. Tata Pigments Limited: TPL's range of products includes oxides of iron, dry cement paint,
exterior emulsion paint and distemper.
9. Jamshedpur Injection Powder Limited (Jamipol): JAMIPOL manufactures carbide desulphurising compounds which are used for de-sulphurising hot metal for the production of lowsulphur, high-quality steel.
10. TM International Logistics Limited (TMILL): TMILL provides material handling and port
operation services at Haldia and Paradip Ports.

19

11. Mjunction services limited: Mjunction, operating at the cutting edge of Information
Technology, is a 50:50 venture of SAIL and Tata Steel. It is India's largest eCommerce company
and the world's largest eMarketplace for steel.
12. TRF Limited: TRF, one of India's leading companies in the business of design, manufacture,
supply, installation and commissioning of engineered-to-order equipment and systems in the
areas of bulk material handling, processing, reclaiming and blending.
13. Jamshedpur Utility and Service Company Limited (JUSCO): Re-engineered out of Tata
Steel's town services, JUSCO is a wholly owned subsidiary of Tata Steel and is the country's first
enterprise that provides municipal and civic services for townships.
14. The Indian Steel and Wire Products Limited (ISWP): Recently acquired by Tata Steel, ISWP
has two units - a wire unit comprising wire drawing mills, wire rod mills and a fastener division.
15. Tata BlueScope Steel Limited: A joint venture with BlueScope Steel Limited, Australia, Tata
BlueScope Steel Limited offers a comprehensive range of branded steel products for building
and construction applications.
16. Dhamra Port Company, Orissa: A JV between Larsen & Toubro Ltd. and Tata Steel Ltd., the
company will build a deep-draft (18 mtr) all weather port on the east coast of India.
17. Hooghly Met Coke & Power Co.: A joint venture with West Bengal Industrial Development
Corporation Ltd., HMC&PC envisages an annual met coke production capacity of 1.2 million
tons and 90 MW of electric power.
18. Lanka Special Steel Limited: The only unit in Sri Lanka manufacturing galvanised wires.
19. Sila Eastern Company Limited: Established to develop limestone mines in Thailand, mainly
for the captive use of Tata Steel.
20. NatSteel Holdings (NSH): A leading supplier of premium steel products for the construction
industry. NatSteel Holdings became a 100% subsidiary of Tata Steel in February 2004.
21. Tata Steel Thailand: The Company is the dominant steel producer in Thailand. The company
has the capacity to produce 1.7 million tons of steel for the construction industry per year.
20

22. Tata Steel KZN: Proposes to set up high carbon ferrochrome plant in South Africa.
23. Tata NYK : A joint venture with Nippon Yusen Kabushiki Kaisha (NYK Line) for setting up
a shipping company to cater to dry bulk and break bulk cargo.

3. DISCUSSION AND CONCLUSIONS

Tata Steel has set ambitious target to possess 50 million tonne per annum capacity by 2015.

Overseas acquisition till now add up to 21.4 million tonne, which includes Corus
production at 18.2 million tonne, Natsteel production at two million tonne and
Millennium Steel production at 1.2 million tonne. Company is looking to add another 29
million tonnes through the acquisition route.

Company has lined up a series of Greenfield projects in India and outside which includes

6 million tonne Plant in Orissa

12 million tonne in Jharkhand

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5 million tonne in Chhattisgarh

3-million tonne plant in Iran

2.4-million tonne plant in Bangladesh

5 million tonne capacity expansion at Jamshedpur

4.5 million tonne plant in Vietnam (feasibility studies underway)

Its expected that Tata Steel will rise to 4th position in the next 5 years just behind POSCO,
NIPPON and MITTAL ARCELOR. Beyond 2009 and up to 2012 its growth rate is expected to
be 5 million tonnes per year average. By 2012 Tata Steel is expected to have a turnover of US $
24 billion or Rs.120.000 crores and Net profit of US $ 5 billion or Rs. 25000 crores.
Tata Steel has provided many examples of how business-community relations are approached by
the private sector in India at the present time. Summaries of Tata initiatives reveal that the
company is working to improve both before and after-profit practice.
Corporate governance is being tackled through increased transparency in business operations,
illustrated in the establishment of an Audit Committee. The Tata Code of Conduct also means
that the company holds certain principles, based on value judgements that influence its policies
and procedures. One result of this has been the adoption of various organisational structures that
are responsible for targeting particular issues, such as the Family Welfare and Environmental
Management Department.
Moreover, Tata Steel has seemingly pushed back the boundaries of what is expected from
corporate social responsibility (CSR) in India at this time. Not only has it given donations to
local education, health and sports projects, but it has also demonstrated longer-term commitment
in theestablishment of the Tata Council for Community Initiatives (TCCI). Its participation in the
Global Business Coalition to raise awareness of HIV/AIDS has earned international recognition
over a sustained period. This is indicative of a move towards social investment, which heralds
a more serious commitment to CSR than donations or sponsorship.

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In short, a business might not have the technical or sociological knowledge to implement a
successful community project. Moreover, the community does need to have some opportunity to
voice their complaints, for these to be heard and then challenged by way of a community project
although it is worth bearing in mind that often those who are able to speak out are not
powerless. 11 Tatas paternal adoption of communities is therefore worrying, the implication
being that the targeted communities have minimal input into their future relations with the
company. Although Tata Steels initiatives have served communities on many levels, a means of
enhancing business-community relations in the future would require communication between
both sectors, when both parties are able to contribute to project selection and planning
procedures.

BIBILIOGRAPHY
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http://www.steelonthenet.com/production.html,
http://www.steelonthenet.com/production.html
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