Presentation On Tata Steel

Presentation on TATA STEEL Jamshedpur By: Parveen Singh PGDM(2008-2010)

IMPORTANCE OF STEEL

STEELS OF YESTERDAY  DULL  GREY  COMMODITY  USEFUL BUT UNINTERESTING\  LIMITED STRENGTH RANGE  HEAVY  PRONE TO RUST

STEEL OF TODAY  PRODUCT OF “BEAUTY”  DURABLE,CORROSION RESISTANT  ENVIRONMENT FRIENDLY  RECYCLABLE,REUSABLE  BRANDED PRODUCTS  COMPLEX SHAPES  WIDE COMBINATIONS OF PROPERTIES

GLOBAL STEEL INDUSTRY OUTLOOK:POSITIVE  Global demand:950 mill tones @6%  Demand for flats in china: imports for something  Chinese steel production:21% in 03,220 mill t+  Continuing consolidation

KEY CONCERNS  STEEL sector-still fragmented  Volatile prices -metallics -iron ore -coal  Weaker dollar -↑costs in $  Uncertainty : @demand growth

THE REASON FOR PICKING TATA STEEL

• It is Asia’s first and India largest steel company in private sector. • It is India’s 2nd largest and 2nd most profitable company in private sector. • HR practices

Type : Public (BSE;NSE) Headquarters : Jamshedpur,Jharkhand,India Industry : Steel Revenue : US$ 28.962 billion (2009) Employees : 86,548 (2009)

THE FOUNDERJAMSHETJI NUSSERWANJI TATA • Gifted with the most extraordinary imagination and prescience. • Born on 3rd march 1839. • A pioneer in town planning, he was mainly responsible for modernizing Bombay . • Died in 1904.

THE PIONEERSSIR DORABJI TATA • J N TATA had exhorted to his son to pursue and develop his life’s works; his elder son ,Dorab Tata carried out the bequest with scrupulous zeal, and distinction. • Became the first chairman of TATA enterprises. • He had a deep interest in people. • A great sportsman.

AN OVERVIEW  Established in 1907 by Jamsetji Nusserwanji Tata.  Formerly known as TATA IRON AND STEEL COMPANY LIMITED(TISCO)  28.1 million p.a. of crude steel production capacity.  Ranked 315th on fortune global 500(post the Corus acquisition).  Listed in NSE and BSE.  Headquartered in Jamshedpur,Jharkhand and registered office in Mumbai ,India.

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Consistent with the vision of the founder JAMSHEDJI TATA; Tata steel strives to strengthen India’s industrial base through the effective utilization of men and material. The means envisaged to achieve this are high technology and productivity, consistent with modern management practices. • Tata steel recognizes that honesty and integrity are essential ingredients of a strong and stable enterprises, profitability provides the main spark for economic activity. • Over all the company seeks to scale heights of excellence in all that it does in an atmosphere free from fear, and one which encourages innovativeness and creativity.

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We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship. We make the difference through: Our people, by fostering team work, nurturing talent, enhancing leadership capability and acting with pace, pride and passion. Our offer, by becoming the supplier of choice, delivering premium products and services, and creating value with our customers. Our innovative approach, by developing leading edge solutions in technology, processes and products. Our conduct, by providing a safe working place, respecting the environment, caring for our communities and demonstrating high ethical standards.

Goals 2012 • Value Creation: Increase our return in invested Capital (ROIC) to 30% from the current 16%. • Safety: Reduce Loss Time Injure Frequency (LTIF) to 0.4 compared to the current 1.7. • Environment: Reduce Carbon Dioxide(Co2) emissions to 1.5 Tones/tonne of liquid steel compared to the current 1.8T/tls. • Employer of choice: Across all industries – to quartile

PRODUCTS • • • • • •

Hot and cold rolled coils and sheets Galvanized sheets Tubes Wire rods Construction rebar’s Bearings

TOP 5 SHAREHOLDERS NAME %age holds Tata sons limited 27.9 Life insurance co. of India 10.15 Tata motors 4.3 Deutsche securities Mauritius ltd 1.97 HSBC global investment funds a/c HSBC global investment fund Mauritius ltd 1.78

JOINT VENTURE

Associates

INVESTMENTS • NATIONAL JHARKHAND CHHATTISGARH ORISSA - KALINGANAGAR -DHAMRA PORT TAMIL NADU

• INTERNATIONAL SOUTH AFRICA AUSTRALIA MOZAMBIQUE IVORY COAST (W.AFRICA) OMAN VIETNAM

TATA STEEL : THE PATH FORWARD

• Dominant Asian low cost steel major • Value addition through de-integrated production • Dominating high end flats market in India • Strong player in construction segment • Alliances with leaders of steel technology

TATA STEEL FUTURE STRATEGIES • Continuous improvement projects are being focus in all companies and businesses. • Greenfield project in India are progressing. • Enhance there raw material security. • Greater emphasis on safety. • Plans to reduce CO2 emission to benchmark levels.

STRATEGIC BUSINESS UNITS  BEARING DIVISION  FERRO ALLOYS AND MINERALS DIVISION  AGRICO DIVISION  TATA GOWTH SHOP(TGS)  TUBES DIVISION  WIRE DIVISION

CONCEPTS USED • INORGANIC GROWTH -the growth which is occurred by merger, ventures and acquisitions. - TATA STEEL WITH CORUS.

• ORGANIC GROWTH -company grows, by not going for mergers and ventures. -focus on the customer (how to retain and how to make new customers)

SWOT ANALYSIS

STRENGTH • Self sufficient in the case of major raw material iron ore. • Very advanced research and development wing. • Strong retail and distribution network . • Tata steel has been on the path of accelerated growth with foray into several geographies and markets through aggressive mergers and acquisitions.

WEAKNESS • Raw material for steel production are rapidly depleting and are non renewable. • Steel production in India is hampered by power shortages • Low labour productivity • High costs of basic inputs and services

OPPORTUNITIES • Enormous scope for increasing consumption. • Unexplored rural market. • Corus acquisition bring in a tremendous technological advantage by access to best practices in global steel industry. • Booming infrastructure.

THREATS • Rising of environmental costs due to the increased concerns on global warming. • Threat of substitutes. • Scarcity of non renewable raw material.

References : • • • •

“Turnaround and Transformation: Path to Global Competitiveness”, Steel Authority of India Limited, September 1, 1999 Data available on www.tatasteel.com “strategies for sustainable turnaround of Indian steel industry”, http://www.ieindia.org/publish/mm/1003/oct03mm2.pdf, S G Dastidar. “Reforms and Restructuring in Global Steel” , Iron and Steel Review, December 2005

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