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A STUDY OF THE

STEEL INDUSTRY

WITH SPECIAL

REFERENCE TO

TATA STEEL

Course Details

Course : Industry ProjectSemester : VI

Course Code : MGT/IP1/324070

Submitted by

Name : Noopur

Enroll No. :

CUJ/I/2009/MBA/19

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DECLARATION

I Noopur hereby declare that this Industry project titled A STUDY OF THE

STEEL INDUSTRY INDUSTRYWITH SPECIAL REFERENCE TO

TATA STEEL is a bona fide work out by me.

I state that no portion of this project report

is published or submitted to any other organization. This study is the work

of my own, for the fulfillment of my Semester VI Industry project. I

hereby acknowledge that the information is genuine to the best of my

knowledge and has been collected from reliable sources, the Internet, and

the annual reports and corporate sustainability reports of the TATA

STEEL.

NoopurCUJ/01/2009/MBA/19Central University of JharkhandBrambe, Ranchi

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Certificate of Guide

This is to certify that Miss Noopur, Enroll No: CUJ/01/2009/MBA/19, student of

Semester VI of the IMBA Program has undertaken the project titled A STUDY OF

THE STEEL INDUSTRY INDUSTRYWITH SPECIAL REFERENCE TO TATA

STEEL under my guidance.

No portion of this project report is published or submitted to any other

University or organization. This study was done for the fulfillment of the requirements

of Industry Project during the Semester VI of the IMBA Program.

The information in the report is genuine to the best of my knowledge and has been

collected been collected from reliable sources, the Internet, and the annual reports and

corporate sustainability reports of the Tata STEEL. The analysis and compilation was

the original work of the student based on secondary data.

She has completed his project satisfactorily. This certificate is being issued for academic

purpose.

DR. TAPAS GHOSAL

HEAD

Centre for Business

Administration

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Acknowledgement

There are times when one feels a sense of accomplishment combined with a

sense of gratitude. Writing the acknowledgement page in this project is one

among them.

I would like to thankProf. Tapas Ghoshal (Dean, School of

Management Sciences) who provided us a golden chance for working on any

industry of my choice and. He was a constant help throughout the project and

his guidance was a key reason for the success of this project. .

I am also very grateful to all the faculty members whose constant

motivation and support has helped me to complete this project. Last but not

the least I thank all my team members whose constant hard work and

brainstorming sessions has led to the successful completion of this projectwork.

My project has become a reality only because of cooperation

of these among many other people who had helped me in successfully

completing this project.

Noopur

CUJ/01/2009/MBA/19

Central University of Jharkhand

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Brambe, Ranchi

Table of contents

S.No. Topic Page No.

1. Executive Summary 7

2. Overview Of Steel Industry

- Introduction

- Growth Of Indian Steel Industry

- Division Of Indian Steel

- Demand And Supply

- Market Analysis

- Mergers/Acquisitions

- Subsidies and Competitiveness

- SWOT

- Drawbacks

- Growth Parameters

- Future Projections

- Summary

9

10

12

13

14

14

15

16

17

18

19

20

3. Profile Of Tata Steel

- Introduction

- Company History

- Capacity Expansion

- Acquisition

- Operations

22

23

24

25

26

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- Vision/Mission

- Policies

- Profile Of Founders

- Board Of Directors

- Key Enterprise Process

- Strategic Business Units

- Joint Ventures, Subsidiaries and Associates

27

28

32

34

37

37

39

4. SWOT Analysis 45

5. Environmental Analysis 50

6. Customer, Competitor and Product Analysis 54

7. Marketing Strategy And Implementation

- BCG Matrix

- Porters 5 Forces Model

59

60

8. Financial Analysis 63

9. Corporate Social Responsibility 73

10. Future Outlook 77

11. Conclusion and Findings 78

12. Bibliography 79

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EXECUTIVE SUMMARY

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 generation. 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 the national

exchequer in the form of excise and custom duties, apart from earning foreign exchange of

approximately Rs. 3,000 crore through exports. Consumption of finished steel grew by 5.9

% and increased to 24.9 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 base and cheap skilled labor is thus well placed for

the development of steel industry and to provide a strong manufacturing base for the

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

period last year showing an increase of 3.7 %. The most spectacular achievement has,

however, been recorded in export performance.

Steel has so far proved to be the single key factor responsible for industrial production and

thereby, for economic growth. And it is growing from strength to strength with newer

developments-both within steel making practice as well as engineering developments,

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which ask for more usage of steel. So much so, that economic development has become

almost synonymous with steel.

8

OVERVIEW OF

STEEL

INDUSTRY

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INTRODUCTION

Steel is crucial to the development of any modern economy and is

considered to be the backbone of human civilisation.

It is a product of a large and technologically complex industry having

strong forward and backward linkages in terms of material flows and

income generation.

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Stages in Global Production of Steel

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Steel industry reforms particularly in 1991 and 1992 have led to strong and

sustainable growth in Indias steel industry.

Since its independence, India has experienced steady growth in the steel industry,

thanks in part to the successive governments that have supported the industry and

pushed for its robust development.

1981 1991 2001 2012

11

1.1 1.1 1.623.23

5.056.75

9.36

12.02

14.3

24.2

26.2

36.5

0

5

10

15

20

25

30

35

40

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The graph indicating an upward movement which shows the rising demand for Steel

in the following years.

OWNERSHIP OF INDIAN STEEL INDUSTRY

PUBLIC PRIVATE

SAIL

VISAKHAPATNAM STEEL

PLANT

FERRO SCRAP NIGAM

LIMITED

BIRD GROUP OF

COMPANIES

SPONGE IRON INDIA

LIMITED

MECON LIMITED

BHARAT REFRACTORIES

LIMITED

TATA-CORUS

ESSAR

ISPAT

JSW STEEL LIMITED

MUKAND LIMITED

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Indian steel industry is poised for rapid growth.

Indias share in world production of crude steel increased from 1.5%

in 1981 to around 7.3% in 2008.

The private sector is considered engine of growth in the steel

industry and technological changes and modernization are taking

place in both the public and the private sector integrated steel plants

in India.

DEMAND OF STEEL

Driven by a booming economy and concomitant demand levels,

demand of steel has grown by 12.5 per cent during the last three

years, well above the 6.9 percent envisaged in the National Steel

Policy.

Demand of Steel amounted to 53.10 mt in 2009-10 compared to

49.50 mt in 2007-08, recording a growth rate of 7.3 per cent, which

is higher than the world average.

SUPPLY OF STEEL

India is the worlds fifth largest steel producer and its share is 3% plus in

global steel output which is still very low.

China, the worlds biggest steelmaker, produces nearly ten times as much

as India.

Over the past ten years Indias crude steel output rose nearly 7%per year to

55.3 million tons , while global crude steel output increased by 4% .

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DEMAND SUPPLY MISMATCH

India is one of the worlds top ten steelmakers its domestic output is

insufficient to meet the demand in all segments.

Consumption of steel is very fast and as a consequence of the

prospective dynamic economic growth.

Secondly, there is demand for high-quality products which India will

not be able to supply in sufficient quantities for the foreseeable future.

MARKET ANALYSIS

Concentration ratio of an industry is an indicator of the relative size of

firms in relation to the industry as a whole.

The 4 firm concentration ratio of the Iron and Steel Industry is 71%.

Both homogenous product or product differentiation are possible

There is a price war and price rigidity

Price output decisions are very difficult and indeterminate.

This implies that there is oligopoly in the industry as it is dominated by

few major players.

MERGERS & ACQUISITIONS

Some important mergers and acquisition

Arcelor - Mittal

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o 32.2bn$ deal

o Mittal pips Severstal

Tata-Corus

o 11.3bn$ deal

o Tatas pip CSN

SUBSIDIES AND ISSUES OF COMPETITIVENESS

The income-tax benefits-related export activities are incorporated insections 80HHC, 10A and 10B of the Income Tax Act.

The reserve bank of India has accordingly issued directions to

commercial Banks to provide export credit both at pre- and post-

shipment stages.

India also administers a number of duty drawback schemes that allow

for the remission or drawback of import charges levied on inputs that

are consumed in the production of an exported product. Schemes suchas duty Entitlement pass book Scheme (DEPB) and Duty free

Replenishment certificate (DFRC) fall under this category.

The income-tax benefits-related export activities are incorporated in

sections 80HHC, 10A and 10B of the Income Tax Act.

The reserve bank of India has accordingly issued directions to

commercial Banks to provide export credit both at pre- and post-

shipment stages.

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India also administers a number of duty drawback schemes that allow

for the remission or drawback of import charges levied on inputs that

are consumed in the production of an exported product. Schemes such

as duty Entitlement pass book Scheme (DEPB) and Duty freeReplenishment certificate (DFRC) fall under this category.

SWOT ANALYSIS

SWOT Analysis of the Indian steel Industry:-

Strengths1. Availability of iron ore and coal

2. Low labour wage rates

3. Abundance of quality manpower

4. Mature production base

Weaknesses1. Unscientific mining

2. Coking coal import dependence

3. Low R&D investment

4. Inadequate infrastructure

Opportunities Threats

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1. Unexplored rural market

2. Growing domestic demand

3. Exports

4. Consolidation

1. China becoming net exporter

2. Protectionism in the West

3. Dumping by competitors

4. Global economic slowdown

FACTORS HOLDING BACK THE INDIAN STEEL

INDUSTRY

Energy supply

Problems procuring raw material inputs

Inefficient transport system

Recent financial crisis and Indian Steel Industry

17

SAIL

38%

JSW

13%

ISPAT

12%

4%

TATASTEEL

18%ESSAR

15%

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PLAYERS IN INDIAN STEEL

INDIAN STEEL INDUSTRY A BRIGHT FUTURE

RESOURCES

Abundant Iron Ore reserves

Strong Managerial skills in Iron and Steel making

Large pool of skilled Man-power

Established steel players with strong skills in steel making

OPPORTUNITIES

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High economic growth driven increasingly by industry

Faster Urbanization

Increased Fixed Asset Building

Automobiles and component industry growth

POLICY

Pro-active stance of Govt.

Encouragement for overseas investments

Growth in key sectors will drive the steel demand

Apparent Steel consumption

of countries

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Key Sectors driving growth:-

Infrastructure development.

Housing and urban development

High degree of urbanizations

High demand in the auto sector

Capacity building in steel making

These sectors in India are growing at an increasing rate.

IN SUMMARY..

Indian steel industry exudes optimism but crisis should get over as

soon as possible.

Investment in infrastructure is crucial to step up demand for steel.

Supply may have to be rationalized in line with the demand (Dom +

exports

Integrated Mills would hold the key in future growth of Indian Steel

supplies.

New technologies to use indigenous natural resources would have to be

developed

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Thus it is being predicted that the Indian steel would double its Steel

Production in the coming years.

21

PROFILE

OF

TATA STEEL

Steel Production

29 3134 36

50

70

110

0

25

50

75

100

125

150

2000-01 2001-02 2002-03 2003-04 2006-07 2011-12 2020

Year

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Tata Steel moves into its next target to become the worlds second largest

steel company by 2012 with the help of its most expensive between worth

$12.9 billions on Corus groups.

BUSINESS STANDRAD

INTRODUCTION

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Tata Steel (BSE: 500470), formerly known as TISCO and Tata Iron and

Steel Company Limited, is the world's sixth largest steel company, with an

annual crude steel capacity of 31 million tones. It is the largest private sector

steel company in India in terms of domestic production. Ranked 258th on

Fortune Global 500, it is based in it is based in Jamshedpur, Jharkhand , India.

It is part of Tata Group of companies. Tata Steel is also India's second-largest

and second-most profitable company in private sector with consolidated

revenues of Rs 1,32,110 crore and net profit of over Rs 12,350 crore during

the year ended March 31, 2008.

Its main plant is located in Jamshedpur, Jharkhand, with its recent

acquisitions; the company has become a multinational with operations in

various countries. The Jamshedpur plant contains the DCS supplied by

Honeywell .The registered office of Tata Steel is in Mumbai. The company

was also recognized as the world's best steel producer by World Steel

Dynamics in 2005. The company is listed on Bombay Stock Exchange andNational Stock Exchange of India, and employs about 82,700 people (as of

2007).

COMPANY HISTORY

Tata Iron & Steel Company Ltd. (TISCO) is the iron and steel production

company associated with the Tata group of some 80 different industrial and

other business enterprises in India, founded by members of the Tata family.

TISCO operates as India's largest integrated steel works in the private sector

with a market share of nearly 13 percent and is the second largest steel

company in the entire industry.

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Its products and services include hot and cold rolled coils and sheets,

tubes, construction bars, forging quality steel, rods, structural, strips and

bearings, steel plant and material handling equipment, Ferro alloys and other

minerals, software for process controls, and cargo handling services. Through

its subsidiaries, TISCO also offers tinplate, wires, rolls, refractorys, and

project management services.

Tata's Early Beginnings in the 1800s

Jamsetji Nusserwanji Tata was born into a well-to-do family of Bombay

Parsees in 1839. Tata Steel was established by Indian Parse businessman

Jamsetji Nusserwanji Tata in 1907 (he died in 1904, before the project was

completed). Tata Steel introduced an 8-hour work day as early as in 1912

when only a 12-hour work day was the legal requirement in Britain. It

introduced leave-with-pay in 1920, a practice that became legally binding

upon employers in India only in 1945. Similarly, Tata Steel started a Provident

Fund for its employees as early as in 1920, which became a law for all

employers under the Provident Fund Act only in 1952. Tata Steel's furnaces

have never been disrupted on account of a labor strike and this is an enviable

record.

Capacity Expansion

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Tata Steel has set an ambitious target to achieve a capacity of 100 million tone

by 2015. Former Managing Director B. Muthuraman stated that of the

100 million tone,

Tata Steel has lined up a series of Greenfield projects in India and outside

which includes-

1. 6 million tone plant in Orissa (India)

2. 12 million tone in Jharkhand (India)

3. 5 million tone in Chhattisgarh (India)

4. 3-million tone plant in Iran

5. 2.4-million tone plant in Bangladesh

6. 5 million tone capacity expansion at Jamshedpur (India)

7. 4.5 million tone plant in Vietnam (feasibility studies underway)

Acquisitions

Some of the major acquisitions in rcent years.

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Corus is Europes second largest steel producer. With main

steelmaking operations in the UK and the Netherlands, Corus supplies steel

and related services to the construction, automotive, packaging, mechanical

engineering and other markets worldwide. (www.corusgroup.com)

NatSteel Holdings is headquartered in Singapore and is a leading

supplier of premium steel products for the construction industry. It became a

100% subsidiary of Tata Steel in February 2004. NSH produces about 2 MT

of steel products annually across its regional operations.

(www.natsteel.com.sg)

Headquartered in Bangkok, Tata Steel Thailand is a major steel

producer in Thailand and is the largest producer of long steel products with a

manufacturing capacity of 1.7 mtpa. ( www.tatasteelthailand.com)

OPERATIONS OF TATA STEEL

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http://www.corusgroup.com/http://www.natsteel.com.sg/http://www.natsteel.com.sg/http://www.natsteel.com.sg/http://www.tatasteelthailand.com/http://www.corusgroup.com/http://www.natsteel.com.sg/http://www.tatasteelthailand.com/

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Tata Steel is one of the ventures of the Tata Group but it has many successful

companies under one umbrella. Some of the other notable Tata concerns and

their line of business is as follows:-

VISION AND MISSION

Vision

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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 for our customers.

Our innovative approach, by developing leading edge solutions in

technology, processes and products.

Mission

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.

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.

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POLICY OF TATA STEEL

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.

Corporate social responsibility

Tata Steel believes that the primary purpose of a business is to improve

the quality of life of people. Tata Steel shall conduct its business ever mindful of its social

accountability, respecting applicable laws and with regard for human

dignity.

Tata Steel shall positively impact and influence its partners in fostering

a sense of social commitment for their stakeholders.

Date:1stOctober2011

HM Nerurkar

( Managing Director)

Quality policy

Consistent with the group purpose, Tata Steel constantly strives to improve

the quality of life of the communities it serves through excellence in all facets

of its activities.

We are committed to create value for all our customers and key stakeholders

by continually standardizing, improving and innovating our offerings,

systems and processes involving all our employees.

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This policy shall form the basis of establishing and reviewing the Business

Objectives and Strategies and shall be communicated across the organization.

The policy will be reviewed to align with business direction and to comply

with all the requirements of TQM Principles.

Date: 1st October 2011 HM Nerurkar( Managing Director)

Human Resource Policy

Tata Steel is an equal opportunity employer.

Tata Steel recognizes that its people are the primary source of its

competitiveness.

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 equality in all its dealings

with its employees.

Tata Steel shall strive continuously to foster a climate of openness, mutual

trust and teamwork.

In the process Tata Steel shall strive to be the employer of choice by

attracting the best available talent and ensuring a cosmopolitan workforce.

30

Date: 1st October 2011

HM Nerurkar

( Managing Director)

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Safety Policy

Tata Steels safety and occupational responsibilities are driven by our

commitment to ensure zero harm to people we work with and society at large

and are integral to the way we do business.

Safety Principles

Safety is a 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 work permit and using necessary personal protective equipment.

We are committed to continual improvement in our S&OH performance.

We shall set objective-targets, develop, implement and maintain management

standards and systems, and go beyond compliance of the relevant industry

standards, legal and other requirements.

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Date: 1st October 2011

HM Nerurkar

( Managing Director)

.

Environment policy

Well shall develop & rehabilitate abandoned sites through a forestation

and landscaping and shall protect and preserve the bio-diversity in theareas of our operations.

We shall enhance awareness, skill and competence of our employees

and contractors so as to enable them to demonstrate their involvement,

responsibility and accountability for sound environmental performance.

We are committed to continual improvement in our environmental

performance.

We shall set objectives, targets, develop, implement and maintainmanagement standards and system, and go beyond compliance of the

relevant industry standards legal and other requirements.

We will truly succeed when we sustain our environmental achievement

and are valued by the communities in which we work.

Date: 1st October 2011

HM Nerurkar( Managing Director )

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33

PROFILE

OF

FOUNDERS

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Jamsetji Nusserji Tata(1839-1904) ranks among the greatest

visionaries enterprises of All time. Gifted with the most

extraordinary imagination and

Prescience, he laid the foundations of Indian industry, contributed to

Its consolidation, and became a key figure in Indias industrial

renaissance.

Sir Dorabji Tata (1859-1933)

J N Tata had exhorted to his sons to pursue and develop his lifes work;

His elder son, Dorabji Tata carried out the bequest with scrupulous zeal, and

distinction.

Jehangir Ratanji Dadabhai Tata (1904-1993)

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JRD Tata has been one of the greatest builders and personalities of modern India in

the twentieth century. He assumed Chairmanship of Tata Sons Limited at the young age of

34, but his charismatic, disciplined and forward-looking leadership over the next 50 years

and more, led the Tata Group to new heights of achievement, expansion and

modernization.

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Board of Director

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Senior Management People

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Ratan Naval Tata

Ratan Naval Tata, the chairman of the Tata Group, India's most respectedconglomerate. He was born in Mumbai on December 28, 1937. Ratan

Tata holds a degree in Architecture and Structural Engineering from

Cornell University. He has also done the Advanced Management Program

from Harvard Business School in 1974-1975. He is also chairman of other

Tata companies of other Tata companies, including Tata Motors, Tata

Consultancy Services, Tata Power, Tata Tea, Tata Chemicals, Indian hotels and Tata

Teleservices.

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Mr. Tata joined Tata Steel in December 1962. After serving in various other

Tata companies, he was appointed director-in-charge of National Radio & Electronics

Company Limited (NELCO) in 1971. In 1981, he was named chairman of Tata

Industries, the second Tata promoter company. Mr. Tata is also the chairman of two of the

largest philanthropic trust in the private sector in India.

Mr. Tata is associated with various organizations in India and abroad. He

is chairman of the Government of Indians Investment Commission and a member of

the prime ministers Council on Trade and industry, the National Hydrogen Energy

Board and the National Manufacturing Competitiveness Council.

The Government of India honored Mr. Tata with its second highest civilian

award, the Padma Vibhushan, in 2008.Earlier, in 2000; he had been awarded the Padma

Bhushan. He has also been conferred an honorary doctorate in Business administration by

the Ohio State University, an honorary doctorate in technology by the Asian Institute of

Technology, Bangkok, an honorary doctorate in science by the university of Warwick, and

an honorary fellowship by the London School of Economics.

KEY ENTERPRISE PROCESS

Leadership

Strategic planning and risk management

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Market Development

Investment Management

Human Resource

Improvement & change management

Order Generation

Operation and fulfillment

Supply Management

Research & Development

Information Management

Strategic Business Units of Tata Steel

A part from main steel division, Tata Steel operation is grouped under the

following strategic Business Units:

Bearing division: manufactures ball bearing, double row self-aligning

bearing, magneto, bearing, clutch release bearing and tapered roller bearing

for two wheelers, fans, water, and pumps.

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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.

Agrico Division: Tata Agrico is the first organized manufacturer in the India

of hand tools and implements for application in agriculture.

Tube Division: The biggest steel tube manufacturer with the largest market

share in India, it aspires to strengthen it market presences by expending and

modernizing its commercial and precision tube manufacturing capacity.

Wire Division: A pioneer in the manufacture of steel wire in India, it

produces coated and uncoated wires, branded as Tata wiring. The division alsooperates a wholly owned subsidiary in Sri Lanka.

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Joint venture, Associates and Subsidiaries

Tata steel has numerous joint ventures and subsidiaries. Among them are:

Jamshedpur injection powder ltd.

JAMIPOL manufactures carbide de-sulphurising compounds

which are used for de-sulphurising hot metal for the production

of low-sulphur, high-quality steel.

Website:- www.jamipol.com

Jamshedpur utility and service company

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. JUSCO is the only EMS 14001 civic services provider in the

country.

Website:- www.juscoltd.com

Lanka Special Steel Ltd.

The only unit in Sri Lanka manufacturing galvanized wires.

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Sila Eastern Company Limited

Established to develop limestone mines in Thailand, mainly forthe captive use of Tata Steel

Tata Steel KZN

Proposes to set up high carbon ferrochrome plant in South Africa. The plant is

slated to be commissioned by October 2007 with an annual production

capacity of 135,000 tons .

Tata Metallics Limited

Tata Metallics is recognized as Indias number one pig iron

manufacturing and selling company. Promoted by Tata Steel Limited and

assisted by The West Bengal Industrial

Tata Pigments Limited

TPL's range of products includes oxides of iron, dry cement

paint, exterior emulsion paint and distemper. Its products are used in

paints, emulsion, cement floors, plastic etc

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Tata Refractorys Limited (TRL)

It produces High Alumina, Basic, Dolomite, Silica and Monolithic

Refractorys and offers design, procurement and re-lining applications

services. It is one of the few companies worldwide to produce silica refractory

for coke

ovens and the glass industry. The Company has a basic bricks manufacturing

unit in China.

Tata Steel Processing and Distribution Limited (TSPDL)

Tata Steel Processing and Distribution Limited is wholly owned

subsidiary of Tata Steel. With 8 large processing units, 17 sales locations and

a host of partners like external processing agencies, suppliers, retailers and

other stakeholders, today TSPDL is Indias largest steel service organization

Tata Sponge Iron Limited (TSIL)

TSIL is the first Indian sponge iron plant based on Tata Steel's

Direct Reduction Technology. Its major product lines are sponge iron lumps

and fines.

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Tayo Rolls Limited

India's leading roll manufacturer and supplier, the company

produces rolls which find application in integrated steel plants, power plants,

the paper, textile and food processing sectors, and the government mint

Tinplate Company of India Limited (TCIL)

With a market share of over 35%, it is the industry leader in

India. It has the capability to supply all tinning line products including

electrolytic tinplate / tin-free steel and cold-rolled products.

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.

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Joint Ventures

A JV between Larsen & Toubro Ltd. and Tata Steel Ltd., the company will

build a deep draft (18 meters) all weather port on the east coast of India. The

port will handle 80 million tons per annum of cargo.

www.dhamraport.com

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 e-

Commerce company and the world's largest e-marketplace for steel. mjunction

offers a wide range of selling, sourcing and knowledge services that empower

businesses with greater process efficiencies

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. The Company is

constructing a state-of-the-art metallic coating and painting facility at

Jamshedpur

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Some of the major sectors for the Steel requirement are:

Fuelling Economic Growth

Huge Demand potential Over 1 bn. Population.

Booming middle class. 100mn. population earning more than US$ 3000 per annum

Increasing consumerism

Urbanization on fast track

Housing demand boom

Strong Banking & Judicial System

Large English speaking population 150 mn, powering Services sector

Skilled labor and managerial work force

Growing IT sector

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Large pool of skilled Technical work force

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SWOTANALYSIS

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SWOT analysis is done for a company to find out its overall Strengths,Weaknesses, threats and opportunities leading to gauging to gauging the

competitive potential of the company. The SWOT analysis enables a company

to recognize its market standing and adopt strategies accordingly.

STRENGHTS

Tata Steel Indian operations are self sufficient in the case of its major

raw material iron ore through its captive mines advanced.

Very advanced research and development wing which is carrying out

researches and experiments in the areas of raw materials, blast furnace

productivity ,steel making, product development, process improvement

etc.

Tata had a strong retail and distribution network in India and south east

asia.Tata was a major supplier to the Indian auto industry and the

demand for value added steel products was growing in this market.

The company is on its way to reach a crude steel capacity of 10 million

tons per annum by FY 2011 .The first phase of reaching the crude steel

capacity of 6.8 million tons per annum ,Brown field projects.

The company has in place adequate internal control systems and

procedure commensurate with the size and nature of its business. The

effectiveness of the internal controls is continuously monitored by the

Corporate Audit Division of the company.

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Tata Steel has been on a path of accelerated growth with foray into

several geographies and markets through aggressive mergers and

acquisitions.

Tata Steel now is in the process of implementing a structured approach

in risk management called Enterprise Risk Management (ERM).

Tata Steel addresses the risk of cyclicality of the Steel industry by

maintaining rich product mix and higher value added products whose

vitality is lower .Moreover the industry itself has been undergoing some

structural changes with consolidations. These changes are expected to

bring in greater stability to prices.

Tata Steel with its modernization plans has ensured that it deploys the

best technologies to ensure quality, cost efficiency and environment-

friendly processes. Through acquisition of Corus and with new

Greenfield ventures

Tata Steel has ensured that it has diversified the concentration risk in

single technology of Iron and Steel making.

WEAKNESSES

Endemic deficiencies, these are inherent in the quality and availability

of some of the essential raw materials available in India, eg, high ash

content.

India is deficient in raw materials required by the steel industry .Iron ore

deposits are finite and there are problems in mining sufficient amounts

of it.

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Raw materials for steel industry are depleting fast which are non

renewable, so company has to come up with sustainable methods in

steel production.

Steel production in India is also hampered by power shortages.

Insufficient freight capacity and transport infrastructure impediments to

hamper the growth of Indian steel industry.

Low Labor Productivity, in India the advantages of cheap labor get

offset by low labor productivity.

High cost of basic inputs and services high administered price of

essential inputs like electricity puts in Indian steel industry in a

disadvantage.

OPPORUNITIES

The biggest opportunity before Indian steel sector is that there is

enormous scope for increasing consumption of steel in almost all

sectors in India.

Unexplored rural market .The Indian rural sector remains fairly

unexposed to their multifaceted use of steel.

Excellent potential exist for enhancing steel consumption in other

sectors such as automobiles, packaging, engineering industries,

irrigation and water supply in India.

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It is estimated that world steel consumption will double in next 25

years. Quality improvement of Indian steel combined with its low cost

advantages will definitely help in substantial gain in export market.

Corus acquisition brings in a tremendous technological advantage by

access to best practices in global steel industry.

Booming infrastructure has opened up high demand for steel

worldwide.

THREATS

In the developed world, industries have been facing rising

environmental costs due to the increased concerns in global warming.

It is recognized that the steel and aluminum industries are significant

contributors to manmade green house gas emissions.

High raw material input cost and scarcity of nonrenewable raw

materials are a threat to the industry.

Threat of substitutes; plastics and composites pose a threat to Indian

steel is one of its biggest markets automotive manufacture.

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52

ENVIRONMENTAL

ANALYSIS

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ENVIRONMENTAL ANALYSIS

We can also call it as SLEPT ANALYSIS of TATA STEEL

ECONOMIC

Tata Steel became 6 Th biggest steel producers in the world after

acquiring Corus, but the cost of the integration goes much more beyond

the financial aspect. There are other factors which will add to overallintegration costs such as:

- Cross Cultural integration

- Employer-employee relationship

Steel production processes are energy dependant and price movements

in the energy market would accordingly affect Tata Steels bottom line.

The steel industry is highly cyclical receptive to general economic

conditions including the automotive, appliance, and energy industries.If

these industries face a downturn Tata Steel would definitely take a hit.

POLITICAL

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Tata invested a huge amount in politically unstable countries like

Bangladesh, Iran, Thailand, and Mozambique. The entire process of

setting plan is getting delayed in gas supply in Bangladesh; Iron oremine lease is escalating the project cost in Iran.

Increased infrastructure spending by the Government of India and

development of roads could generate significant savings in freight and

transportation cost making steel companies globally competitive.

SOCIAL

Tata Steel was awarded the Golden Peacock Award for Corporate

Social Responsibility for the year 2009.

From policies on corporate accountability, drugs and alcohol and HIV

prevention, to a Code of Conduct extends to its share holders, ethics and

responsibility are interwoven in the daily course.

Hundreds of people born with cleft lips or cleft palates are operated on

free through a project operation muskan.

Tata being socially responsible in the deployment of companys mobile

medical unit and treating more than 1456660 urban slum and remote

rural areas.

LEGAL

Tata Steel requires huge chunk of land. Sudden spree of big corporate

houses for grabbing the land makes the situation even more

competitive.

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Police firing in Kalinganagar and sudden death of protestors makes the

situation more complex.

Unstable Jharkhand government and the local tribals at an increase is

worsening the situation.

Representatives of environmental activitist group Greenpeace stormed

into the AGM in the guise of share holders of Tata Steel got on the

podium and alleged that the proposed port at dharma on the Orissa coast

will kill the migratory Olive Ridley turtles.

TECHNOLOGICAL

A technological analysis is based on the companys approach towards the

development and use of the technology. This strategy plays an important key

role in overall developing a competitive strategy and hence needs to be

consistent with the other value activities of the organization.

So in the same way Tata Steel made a technological strategy by

making use of E-Portal with the collaboration of SAIL. So Tata Steel forgednew business strategies using the web i.e. metal.junction.com, a 50:50 joint

venture of Tata Steel and Steel Authority of India Limited.

This is a dotcom story with a difference. Tata Steel made a

transformational change through process innovation www.metaljunction.com,

which accounts for about 14 million tones of saleable steel annually.

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56

CUSTOMERS,

COMPETITORS

AND

PRODUCTS

COMPETITORS

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COMPETITORS OF TATA STEEL

Name Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit TotalAssets

Tata Steel 465.50 45,210.03 29,073.50 6,865.69 76,745.77

SAIL 99.40 41,057.42 42,720.19 4,881.25 57,234.96

JSW Steel 687.85 15,347.12 23,368.86 2,010.67 29,176.61

Visa Steel 53.05 583.55 1,332.88 51.38 1,761.41

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Balance Sheet ------------------- in Rs. Cr. -------------------

Tata Steel SAIL JSW Steel Visa Steel SteelExchange

Mar '11 Mar '11 Mar '11 Mar '11 Mar '11

Sources Of Funds

Total Share Capital 959.41 4,130.40 563.18 110.00 43.40

Equity Share Capital 959.41 4,130.40 284.15 110.00 42.85

Share Application Money 178.20 0.00 529.38 0.00 38.15Preference Share Capital 0.00 0.00 279.03 0.00 0.55

Reserves 47,307.02 32,939.07 16,132.71 243.29 118.06

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net worth 48,444.63 37,069.47 17,225.27 353.29 199.61

Secured Loans 2,009.20 11,813.91 7,675.82 1,373.24 333.38

Unsecured Loans 26,291.94 8,351.58 4,275.52 34.88 5.62

Total Debt 28,301.14 20,165.49 11,951.34 1,408.12 339.00

Total Liabilities 76,745.77 57,234.96 29,176.61 1,761.41 538.61

Tata Steel SAIL JSW Steel Visa Steel SteelExchange

Mar '11 Mar '11 Mar '11 Mar '11 Mar '11

Application Of Funds

Gross Block 22,846.26 38,260.60 27,407.35 931.99 211.41

Less: Acumen. Depreciation 11,041.16 23,180.54 6,305.20 161.08 28.74

Net Block 11,805.10 15,080.06 21,102.15 770.91 182.67

Capital Work in Progress 6,969.38 22,228.43 6,169.05 1,390.54 116.36

Investments 46,564.94 684.14 4,098.81 61.04 16.69

Inventories 3,953.76 11,302.79 4,138.41 395.68 208.51

Sundry Debtors 428.03 4,161.30 838.65 47.99 169.88

Cash and Bank Balance 512.76 143.99 136.26 2.01 6.46

Total Current Assets 4,894.55 15,608.08 5,113.32 445.68 384.85

Loans and Advances 16,814.04 6,175.81 3,324.43 180.02 131.34

Fixed Deposits 3,628.78 17,334.87 1,750.62 86.50 20.29

Total CA, Loans & Advances 25,337.37 39,118.76 10,188.37 712.20 536.48

Deferred Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 10,383.04 13,994.33 11,984.37 1,159.16 308.37

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MAJOR LOCAL STEEL PLAYERS

CUSTOMERS OF TATA STEEL

Tata steel serves Customers in these market sectors globally;

Automotive Construction

Consumer goods

Engineering

Packaging

Lifting and Excavation

Energy and Power

Aerospace

Shipbuilding

Rail

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Defense and Security

TATA STEEL PRODUCTS

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MARKETING

STRATEGY AND

IMPLEMENTATIO

N

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MARKETING STRATEGY AND IMPLEMENTATION

BCG PRODUCT PORTFOLIO MATRIX

Tata Steel has stable market growth but has a relatively high market share

so it comes under cash cow. This implies that it is generating enough

revenue that can be pooled into stars and question marks.

HIGH

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LOW HIGH LOW

The relative market share and the relative market growth of TATA STEEL.

PORTERS FIVE FORCES MODEL

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STAR

Automobile, Tea , Chemicals

QUESTION MARK

Technology Consultancy

Engineering Services Composites

CASH COWSPower, Steel, Oil

And Gas

DOGS

Information Systems

And Communication

THREAT OF NEW

ENTRANTS

BARGAINING

POWER OF

BUYERS

RIVALRY AMONG

EXISTING

COMPETITORS

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ENTRY BARRIERS: High

Capital Requirement: Steel industry is a capital intensive business. Tata Steel has

made sufficient efforts in this regard.

Economies of Scale: Tata Steel being an integrated steel plant has its own mines for

key raw materials such as iron ore,coal and this protects them from the potential

threat for new entrants to a significant extent.

Government Policy: the govt has favorable policy for steel manufacturers and Tata

Steel being a century old company under the flagship of Tata Sons famous for its

Corporate Social Responsibility enjoys a respectable position in front of the Indian

Govt.

Product Differentiation: Steel doesnt fall in luxury or specialty good thus does not

have price difference. Steel does enjoys a premium for its products because of its

quality and its brand value.

Currently two majors Steel players Arcelor-Mittal and POSCO are the biggest threat

for Tata Steel.

COMPETITION: High

The Steel industry is truly global in terms of competition with large producing

countries like China significantly influencing global prices through aggressive

exports.

Steel being a commodity, its branding is not common as there is little differentiation

between competing products.

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BARGAINING

POWER OF

SUPPLIERS

THREAT OF

SUBSTITUTE

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The four major domestic steel rivals SAIL, JSW, ISPAT And ESSAR STEEL. Rest

are all smallish mills which together accounts for 30% of the total market share.

BARGAINING POWER OF SUPPLIERS: High

The bargaining power of suppliers is low as Tata Steel plant is fully integrated.

Since domestic raw material sources are insufficient to supply the Indian steel

industry, a considerable amount of raw materials has to be imported.

Tata Steel in order to safeguard itself from the high bargaining power, Tata Steelhas forayed itself into the concept of BACKWARD INTEGRATION.

It is also evaluating several other mineral projects in Australia and Brazil.

To achieve coal security by way of imports, the company has formed a joint venture

with an Australian company for producing coal in Mozambique.

For limestone Tata Steel has entered into a joint venture with the AL Bahja Group

of Oman.

THREATS OF SUBSTITUTES: LOW

Plastics and Composites pose a threat to Indian steel is one of its biggest markets-

automotive manufacture.

Steel has already been replaced in some large volume applications, Railway

sleepers(RCC sleepers),large diameter water pipes(RCC pipes)etc.The substitution

is more prevalent in the manufacture of automobiles and consumer goods industry.

BARGAINING POWER OF CONSUMER: MIXED

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Some of the major steel consumption sectors like automobiles, oil and gas, shipping,

consumer durables and power generation enjoy high bargaining power ang get

favorable deals.

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FINANCIAL

ANALYSIS

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FINANCIAL ANALYSIS

The principal contents of the modern approach to financial managementcan be said to be. How large should an enterprise be, and how fast shouldit grow? In what form should it hold assets?

What should be the composition of its liabilities?

This financial management in the modern sense of the term can becategories into three major decisions as function of finance.

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The investment decision

The finance decision

The dividend policy decision

Financial analysis follows a comprehensive framework Oflooking at various parameters, the ratios play a verydominant role:-

Current Ratio

Interest Coverage Ratio

Earnings Per Share

Profit after paying Tax

Per Share Earning

Total/ Debt Net Worth Ratio

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An indication of a company's ability to meet short-term debt obligations

CURRENT RATIO= current assets/current liabilities

If current liabilities exceed current assets, then the company may have problems

meeting its short-term obligations

higher the ratio-more liquid the company

In case of TATA Steel , CR was very high as their inventory was high.

A calculation of a company's ability to meet its interest payments on outstanding

debt.

Interest coverage ratio is equal to earnings before interest and taxes for a time

period.

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The portion of a company's profit allocated to each outstanding share of common

stock. Earnings per share serve as an indicator of a company's profitability.

A financial performance ratio, calculated by dividing net income after taxes by net

sales. A company's after-tax profit margin is important because it tells investors the

percentage of money a company actually earns per dollar of sales.

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A valuation ratio of a company's current share price compared to its per-share earnings.

In general, a high P/E suggests that investors are expecting higher earnings growth in the

future compared to companies with a lower P/E.

This ratio shows the extent to which the company is dependent on Outside Interest bearingfunds compared to shareholders funds.

The ratio should ideally be less than 1 i.e. the amt of funds contributed by outside loansshould be less than the shareholders funds.

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ANALYSIS OF THE CAPITAL STRUCTURE:

Seeing the trend in the change of capital structure of tata steel for the last ten

years, we can say that the share of institutional (non promoters) are increasing

and the holding of promoters (non institutional are decreasing. This is because

the foreign money flowing in the Indian market.

The cost ofcapital is a term used in the field of financial investment to refer

to the cost of a company's funds (both debt and equity), or, from an investor's

point of view "the shareholder's required return on a portfolio of all the

company's existing securities.

The cost of debt is relatively simple to calculate, as it is composed of the rate

of interest paid. In practice, the interest-rate paid by the company can be

modeled as the risk-free rate plus a risk component (risk premium), which

itself incorporates a probable rate of default (and amount of recovery given

default).

The cost of equity is the minimum rate of return a firm must offer

shareholders to compensate for waiting for their returns, and for bearing some

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risk. The return consists both of dividend and capital gains, e.g. increases in

the share price.

Under the Capital Asset Pricing Model Approach, the cost of equity

is defined as,

re = rf + (rm rf)*

Where,

rf = Risk free return (Obtained from 364 days Treasury bills of

Government)

rm = Average return of market

= Risk Factor

The risk factor is calculated by using the Sensex as the standard and

calculating the slope of the company price with that of the Sensex.

Risk free rate of return is the government security Treasury bill rate and is

obtained from the site of government of India.

Market risk rate is calculated from the change in the sensex price.

The obtained values are shown below:

Year 2010 2009 2008 2007 2006

Beta1.51 1.71 1.92 1.39 1.25

risk free rate (Rf) 7.81 6.74 8.12 7.91 7.77

market return rate

(Rm)

14.32 81.03 -52.44 47.14 46.7

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cost of equity (Re) 24.2803 198.4082 -136.0128 91.8622 90.3016

Cost of Preference Shares

Preference capital, payment of dividends is not legally binding on the firm &

even if the dividends are paid, it is not a charge on earnings, rather it is a

distribution or appropriation of earnings to preference share holders. Cost of

Preference share is not adjusted for taxes because preference dividend is paid

after corporate taxes have been paid. Preference dividends do not save any

taxes.

Cost of Irredeemable Preference Shares

The preference share may be treated as a perpetual security if it is

irredeemable Thus, its cost is given by following equation:-

Kp = Dp/P0(1-f)

Where ;

kp = Cost of Preference Capital

d = Constant Annual Dividend Payment

P0 = Expected Sales Price of Preference Shares

F = Flotation Costs as a percentage of Sales Price

Redeemable Preference Share

The cost of redeemable preference shares is given as follows:

P0(1-f) = n

t=1 Dpt/(1+kp)t + Pn/(1+kp)

Where;

P0 = Expected Sales Price of Preference Shares

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F = Floatation Cost a percentage of Preference Shares

D = Dividends paid on Preference Shares

P n = Repayment of Preference Capital Amount

A GRAPHICAL PRESENTATION OF THE SHARE CAPITAL

RESERVES AND SURPLUS AT AN INCREASING

RATE

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Financial Data of TATA Steel:

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0

5000

10000

15000

20000

25000

20072008 2009 2010

2011

Reserves and surplus

Reserves and surplus

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CORPORATE SOCIAL RESPONSIBILITY

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TATA STEEL

Year 2010 2009 2008 2007 2006

Owner's fund

Equity share capital 887.41 730.79 730.78 580.67 553.67

Share application money - - - 147.06 -

Preference share capital - 5,472.66 5,472.52 - -

Reserves & surplus 36,281.34 23,501.15 21,097.43 13,368.42 9,201.63

Loan funds

Secured loans 2,259.32 3,913.05 3,520.58 3,758.92 2,191.74

Unsecured loans 22,979.88 23,033.13 14,501.11 5,886.41 324.41

Total 62,407.95 56,650.78 45,322.42 23,741.48 12,271.45

total debt25,239.

2026,946.

18 18,021.699,645.

332,516.1

5

total equity37168.

7529704.

6 27300.7314096.

15 9755.3

d/v0.4044

230.4756

540.397633

0040.4062

650.2050

41

e/v0.5955

770.5243

460.602366

9960.5937

350.7949

59

Interest 1,848.19 1,489.50 929.03 251.25 168.44

Rate of Interest(Rd) 7.32 5.53 5.16 2.60 6.69

Beta 1.7 1.65 1.44 1.49 1.57

risk free rate (Rf) 7.81 6.74 8.12 7.91 7.77

market return rate (Rm) 14.32 81.03 -52.44 47.14 46.7

cost of equity (Re) 18.877129.31

85 -79.086466.362

768.890

1

Assuming Tax Rate to be 33%

WACC 13.22689 69.56922

-

46.2656549 40.11091 55.68446

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A Century of Trust

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In a free enterprise, the community is not just another stake

holder in the business but in fact the very purpose of its

existence.

- JAMSETJI TATA

At the Tata Group our purpose is to improve the quality of life of the

communities we serve. We do this through leadership in sectors of

national economic significance, to which the group brings a unique set

of capabilities. This requires us to grow aggressively in focused area of

business.

Our heritage of returning to society what we earn evokes trust among

consumers, employees, shareholders and the community. This heritage

will be continuously enriched by formalizing the high standards of

behaviors expected from employees and companies.

The Tata name is a unique asset representing leadership with trust.

Leveraging this asset to enhance group synergy and becoming globally

competitive is the route to sustained growth and long-term success.

Empowering Communities

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Inclusive Growth

the touchstone of sustainability

Land & Water Management

Rural Livelihood

Health & Sanitation

Education & Skill Development

Sports

Infrastructure Development

Advocacy Right To Information, Training of PRI members

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DISASTER RELIEF

Tata Relief Committee - has sent immediate relief in times of natural

calamities 1 Million Families

Long-term assistance offered

- Tata Relief Committee is serving in 15 districts

- 435 houses and 31 school-cum-cyclone shelter

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FUTURE OUTLOOK OF TATA STEEL

Currently the global steel industry is going through unprecedented times. The steel industry

is growing at the rate of 6% for the last seven years. The iron ore and coking coal pieces are

at a record high both due to insufficient capacity creation for these and the heavy

consolidation of minerals companies. Oil prices and freight rates are at an all time high. The

combined effect of all these have driven steel prices at a level higher than ever before.

The new scenario both external due to high raw material and freight cost called for a new

vision, strategies and action plans. The company has co-created a shared vision with its

employees of becoming a global framework in value creation and corporate citizenship.

Company has set goals for 2012 in terms of Returns on Capital Invested, Safety, Carbon

dioxide emissions and of becoming the employer of choice in the industry. The integration

with Corus is proceeding smoothly and is yielding better than the predicted results.

Continues improvement projects are being given focus in all companies sites and

businesses. There is greater emphasis on safety. They have well laid out plans to reduce

CO2 emissions to benchmark levels atleast down by 20% by 2020 as compared to 1999.

The Tata Steel group will pursue strategic growth through capacity expansion and access to

raw materials.

The group is expanding its capacity in India through expansion of its operations in

Jamshedpur to 10 million tones per annum and through the construction of a 6 million tones

per annum Greenfield site in Orissa.Tata group will be a part of the solution and is

committed to minimize the environmental impact of its operations and its products.

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CONCLUSION AND FINDINGS

Backed by 100 glorious years of experience in steel making, Tata Steel is among the top tensteel producers in the world with an existing annual crude steel production capacity of 30Million Tonnes Per Annum (MTPA). Tata Steel has a balanced global presence in over 50developed European and fast growing Asian markets, with manufacturing units in 26countries.

Through investments in Corus, Millennium Steel (renamed Tata Steel Thailand) andNatSteel Holdings, Singapore, Tata Steel has created a manufacturing and marketingnetwork in Europe, South East Asia and the pacific-rim countries. The term focus is on theimplementation of the Fit for Future restructuring in Europe, to continue with the 3 mtpa

expansion project in Jamshedpur and overseas raw material projects, to increase productionvolume in India and optimise working capital management across the Group to preserveliquidity

Globalization is very relevant to Tata Steels growth trajectory because the steel market isincreasingly becoming global. "A global market is one where a single price holds and allcustomers can buy that product at this price excluding the transaction and transportationcosts. In the steel industry, in every region the regional prices are increasingly being set byglobal trends.Tata Steels Purpose: To add economic value Tata steels product

Improve the quality of life for its employees and communities the company serves

BIBLIOGRAPHY

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Journal & publications :-Available from Tata steel BD & S department.

Marketing Management by Philip Kotler (Eleventh edition)

Research Methodology by C R Kothari (Second edition)

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

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http://steel.nic.in/Perfomance%20budget%20(2005-06)Englishchap2.pdfhttp://www.ieindia.orgpdf8989mm104.pdf/http://article.wn.com/http://steel.nic.in/http://www.tatasteel.com/http://steel.nic.in/Perfomance%20budget%20(2005-06)Englishchap2.pdfhttp://www.ieindia.orgpdf8989mm104.pdf/http://article.wn.com/http://steel.nic.in/http://www.tatasteel.com/

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THANK YOU!!!!!