samrat final project

8/2/2019 Samrat Final Project

1/25

PROJECT

INTRODUCTION

Tata Steel, formerly known as TISCO and Tata Iron and Steel Company Limited, is theworld's sixth largest steel company, with an annual crude steel capacity of 31 million

tonnes. 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 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. Backed by 100 glorious years of experience in steel making, Tata Steel is among

the top ten steel producers in the world with an existing annual crude steel production

capacity of 30 Million Tonnes Per Annum (MTPA).

Geared towards the construction and automotive sector,

Millennium provided Tata Steel strategic space in the heart of the ASEAN region,

enhancing its market position in South East Asia. The company has enhanced its

competitive advantage in raw materials further, buying a five per cent interest in the

Carborough Downs coal project located in Queensland, Australia. Its backward and

forward integration plans include the development of a deep-sea port in Orissa.

Through investments in Corus, Millennium Steel (renamed Tata Steel Thailand) and

NatSteel Holdings, Singapore, Tata Steel has created a manufacturing and marketing

network in Europe, South East Asia and the pacific-rim countries. Corus, which

manufactured over 20 MTPA of steel in 2008, has operations in the UK, the

Netherlands, Germany, France, Norway and Belgium. Tata Steel Thailand is the largest

producer of long steel products in Thailand, with a manufacturing capacity of 1.7

MTPA. Tata Steel has proposed a 0.5 MTPA mini blast furnace project in Thailand.

Tata Steel, through its joint venture with Tata BlueScope Steel Limited, has also

entered the steel building and construction applications market. The iron ore mines and

collieries in India give the Company a distinct advantage in raw material sourcing. Tata

Steel is also striving towards raw materials security through joint ventures in Thailand,

1


2/25

PROJECT

Australia, Mozambique, Ivory Coast (West Africa) and Oman. Tata Steel has signed an

agreement with Steel Authority of India Limited to establish a 50:50 joint venture

company for coal mining in India. Also, Tata Steel has bought 19.9% stake in New

Millennium Capital Corporation, Canada for iron ore mining.

Exploration of opportunities in titanium dioxide business in Tamil Nadu, ferro-chrome

plant in South Africa and setting up of a deep-sea port in coastal Orissa are integral to

the Growth and Globalization objective of Tata Steel.

INDUSTRY PROFILE

Indias economic growth is contingent upon the growth of the Indian steel industry.

Consumption of steel is taken to be an indicator of economic development. India

2


3/25

PROJECT

occupies a central position on the global steel map, with the establishment of new state-

of-the-art steel mills, acquisition of global scale capacities by players, continuous

modernization and up gradation of older plants, improving energy efficiency and

backward integration into global raw material sources.

Going forward, steel production growth in the world average, as the per capita

consumption of steel in India, at around 46 kg, is well below the world average (150

kg) and that of developed countries (400 kg). Indian demand is projected to rise to 200

million tonnes by 2015. By 2012, the steel production capacity in India is expected to

touch 124 million tonnes and 275 million tonnes by 2020.

The establishment of Tata Iron and Steel Company (TISCO) in 1907 was the starting

point of modern Indian steel industry. Afterwards a few more steel companies were

established in the private sector. In 1948, a new Industrial Policy restricted new

ventures in the iron and steel industry to the Central Government. In the 50s and 60s

the plants at Rourkela, Bhilai, Bokaro and Durgapur were set up. In 1973, the Steel

Authority of India Ltd. (SAIL) was created as a holding company to oversee most of

India's iron and steel production.

COMPANY PROFILE

Established in 1907, it is the first integrated steel plant in Asia and is now the world`s

second most geographically diversified steel producer and a Fortune 500 Company. Its

main plant is located in Jamshedpur, Jharkhand, with its recent acquisitions; the

3


4/25

PROJECT

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 and National Stock Exchange of India, and employs about 82,700 people (as

of 2007). Tata Steel has a balanced global presence in over 50 developed European and

fast growing Asian markets, with manufacturing units in 26 countries. It was the vision

of the founder; Jamsetji Nusserwanji Tata., that on 27th February, 1908, the first stake

was driven into the soil of Sakchi. His vision helped Tata Steel overcome several

periods of adversity and strive to improve against all odds. Tata Steel`s Jamshedpur

(India) Works has a crude steel production capacity of 6.8 MTPA which is slated to

increase to 10 MTPA by 2010. The Company also has proposed three Greenfield steel

projects in the states of Jharkhand, Orissa and Chhattisgarh in India with additional

capacity of 23 MTPA and a Greenfield project in Vietnam.

The TATA Steel story is a classic example of synergy leveraged through the inorganic

route. In 2005, Tata Steel acquired NatSteel Asia. This helped the company not only to

establish a beachhead in seven countries across the region, namely Singapore,

Thailand, China, Malaysia, Vietnam, the Philippines and Australia, but also provided it

with a customer base for close to two million tonnes of steel. As a brand, NatSteel's

strong equity in the region was yet another strategic gain for Tata Steel. The company's

strong human resources and managementeffectiveness is also an inheritance of

immense value. Operationally, NatSteel's finishing facilities across the region provided

Tata Steel with the necessary support for upstream capacity expansions in India, as well

as access to knowledge and expertise in downstream processing of bars and wire rods.

The acquisition of Millennium Steel in 2005, Thailand's dominant steel producer, stillconsolidated Tata Steel's gains from the NatSteel deal. Millennium's three operating

units gave the company a cumulative capacity to produce 1.2 million tonnes of steel per

annum through the electric arc furnace route along with a long products rolling capacity

of 1.7 million tonnes a year.

4


5/25

PROJECT

Divisions:

1. Corus

2. Tinplate Company of India Limited (TCIL)

3. Tayo Rolls Limited

4. Tata Ryerson Limited (TRYL)

5. Tata Refractories Limited (TRL)

6. Tata Sponge Iron Limited (TSIL)

7. Tata Metaliks

8. Tata Pigments Limited

9. Jamshedpur Injection Powder Limited (Jamipol)

10. TM International Logistics Limited (TMILL)

11. mjunction services limited

12. TRF Limited

13.Jamshedpur Utility and Service Company Limited (JUSCO)

14. The Indian Steel and Wire Products Limited (ISWP)

15. Tata BlueScope Steel Limited

16. Dhamra Port Company, Orissa

17. Hooghly Met Coke & Power Company

18. Lanka Special Steel Limited

19. Sila Eastern Company Limited

5


6/25

PROJECT

20. NatSteel Holdings (NSH)

21. Tata Steel Thailand

22. Tata Steel KZN

23. Tata NYK

Vision into reality:

Tata Steel is Asias first and Indias largest private sector integrated steel

manufacturer. The Company in 2008 co-created a shared vision with its employees of

becoming a global benchmark in Value Creation and Corporate Citizenship. Although

the Corporate Citizenship concept in Tata Steel has evolved considerably over the

years, it has been reinforced by goal setting, measurement and reporting across the

organization. Sustainable Development, through the improvement of the quality of life

of its employees and the communities it serves, is enshrined within it. To translate this

Vision into reality, Tata Steel has altered paradigms, repositioned benchmarks and has

re-evaluated its core competencies.

Mission:

Consistent with the vision and values of the founder Jamsedji Tata, Tata Steel strives to

Strengthen Indias industrial base through the effective utilization of staff and

materials. The Means envisaged to achieve this are high technology and productivity,

consistent with modern management practices .Tata Steel recognizes that while honesty

and integrity are the essential ingredients of a strong and stable enterprise, profitability

provides the main spark for economic activity. Overall, the Company seeks to scale the

heights of excellence in all that it does in an atmosphere free from fear, and thereby

reaffirms its faith in democratic value.

Board of Directors:

Mr. R N Tata Chairman

6
http://www.tatasteel.com/Company/Rtata.asphttp://www.tatasteel.com/Company/Rtata.asp


7/25

PROJECT

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. Jacobus Schraven Non - Executive Independent Director

Dr Anthony Hayward Non - Executive Independent Director

Mr. Andrew Robb Non - Executive Independent Director

Mr. Philippe Varin Non - Executive Independent Director

Mr. B Muthuraman Managing Director

Mr. Kirby Adams Non - Executive Independent Director

Mr. H M Nerurkar Executive Director, India and South East AsiaOperations

Policies of TATA Steel:

QUALITY POLICY

Tata Steel shall constantly strive to improve the quality of life of the communities it

serves through excellence in all facets of its activities. This policy shall form the basis

7
http://www.tatasteel.com/Company/jamesleng.asphttp://www.tatasteel.com/Company/nusli.asphttp://www.tatasteel.com/Company/sam.asphttp://www.tatasteel.com/Company/suresh.asphttp://www.tatasteel.com/Company/ihussain.asphttp://www.tatasteel.com/Company/irani.asphttp://www.tatasteel.com/Company/s_bhargava.asphttp://www.tatasteel.com/Company/jacobus.asphttp://www.tatasteel.com/Company/anthony-hayward.asphttp://www.tatasteel.com/Company/muthuraman.asphttp://www.tatasteel.com/Company/HMN.asphttp://www.tatasteel.com/Company/jamesleng.asphttp://www.tatasteel.com/Company/nusli.asphttp://www.tatasteel.com/Company/sam.asphttp://www.tatasteel.com/Company/suresh.asphttp://www.tatasteel.com/Company/ihussain.asphttp://www.tatasteel.com/Company/irani.asphttp://www.tatasteel.com/Company/s_bhargava.asphttp://www.tatasteel.com/Company/jacobus.asphttp://www.tatasteel.com/Company/anthony-hayward.asphttp://www.tatasteel.com/Company/muthuraman.asphttp://www.tatasteel.com/Company/HMN.asp


8/25

PROJECT

of establishing and reviewing the Quality Objectives. The policy will be to comply with

all the requirements of the Quality Management Standard.

HUMAN RESOURCE POLICY

Tata Steel recognizes that its people are the primary source of its competitiveness. It is

committed to equal employment opportunities for attracting the best available talent

and ensuring a cosmopolitan workforce. It will pursue management practices designed

to enrich the quality of life of its employees, develop their potential and maximize their

productivity. It will aim at ensuring transparency, fairness and equity in all its dealing

with its employees. Tata Steel will strive continuously to foster a climate of openness,

mutual trust and teamwork

RESEARCH POLICY

Tata Steel believes that research provides the foundation for sustained, long-term,

stakeholder delight. Tata Steel shall nurture and encourage innovative research in

creative ambience to ensure that the competitive advantage in its overall business is

retained and surpassed. Towards this goal, the Company commits itself to providing allnecessary resources and facilities for use by motivated researchers of the highest

caliber. Research in Tata Steel be aligned to the technological initiatives necessary to

evolve and fulfill the overall business objectives of the Company.

SAFETY PRINCIPLE

Safety is line management responsibility. All injuries can be prevented. Felt concern

and care for the employee on 24 hours safety shall be demonstrated by leaders.

Employees shall be trained to work safely. Working safely shall be condition of

employment. Every job shall be assessed for the risk involved and shall be carried out

as per authorized procedures/ checklist/ necessary work permit and using necessary

personal protective equipment.

8


9/25

PROJECT

SOCIAL ACCOUNTABILITY POLICY

Tata Steel, in accordance with its founding principles, will continue to improve the

quality of life of its employees and the communities it serves. Tata Steel will conduct

its business ever mindful of its social accountability, respecting applicable laws and

with regard for human dignity. Tata Steel will positively impact and influence its

partners in fostering a sense of social commitment for their stakeholders.

CORPORATE SOCIAL RESPONSIBILITY POLICY

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

life of people. Tata Steel will volunteer its resources to the extent it can reasonable

afford, to sustain and improve healthy and prosperous environment and to improve the

quality of life of the people of the area in which it operates.

HIV/ AIDS POLICY

Tata Steel is committed to contribute to the global effort towards halting and reversing

the course of HIV/ AIDS. The Company would take measures to actively disseminate

information & education regarding HIV/ AIDS within our workplace and surrounding

communities, with the objective to reduce its transmission.

Corporate Sustainability:

Regarded globally as a benchmark in corporate social responsibility, Tata Steel's

commitment to the community remains the bedrock of its hundred years of

sustainability. Its mammoth social outreach programme covers the company-managed

city of Jamshedpur and over 800 villages in and around its manufacturing and raw

materials operations through uplift initiatives in the areas of income generation, health

and medical care, education, sports, and relief. The Company, fully conscious of its

responsibilities to the future generations, has always taken pro-active measures to

ensure optimum utilization of natural resources. This is reflected in the ISO-14001

certification that all its operations have achieved for environment management. The SA

9


10/25

PROJECT

8000 certification for work conditions and improvements in the workplace at the steel

works in Jamshedpur, along with its Ferro Alloys and Minerals Division, is a reiteration

of its commitment towards the Company's employees.

Tata Steel has pioneered numerous employee welfare measures such as the 8 hours

working day and the three tier joint consultation system of management which have

been the platform for nearly 80 years of industrial harmony in its Steel Works in

Jamshedpur Having espoused the philosophy of Sustainable Development, the

Companys operations, including all its out locations are inextricably interlinked with

the progress of the enterprise, the welfare of the people and the health of the

environment. As global initiatives in promoting responsible business gather

momentum, Tata Steel stands as a beacon of social and environmental commitment, not

only in India but across the world as well. Today, Tata Steel is well positioned to take

forward its 100-year ethos with renewed vigor, having formally integrated its

economic, environmental and social performance reporting. Tata Steels commitment

to sustainable development and growth is amply reflected in its Vision. The Company

has identified and is proactively engaged in addressing economic sustainability,

environmental concern and the social needs of its stakeholders. The core issue,however, identified by Tata Steel, which underpins all these is Value Balancing; such

that long-term partnerships are established with its stakeholders.

Sustainability has also been integrated into the business systems at Tata Steel. Inputs

from stakeholders through formal and informal processes allow the Company to focus

on their concerns, to identify issues and delineate strategic objectives.

TATA Steel Limited Strategies:

10


11/25

PROJECT

11


12/25

PROJECT

Tata companies have evolved a collective commitment to evolving stronger

connections between their values and first- in-class business practice not by putting

either one ahead of the other, but by finding mutually beneficial bridges between them.

In a free enterprise, the community is not just another stakeholder in business,

but is in fact the very purpose of its existence. Jamsetji N. Tata (Founder, Tata

Group, 1868) The Tata philosophy of management has always been and is today

more than ever, that corporate enterprises must be managed not merely in the

interests of their owners, but equally in those of their employees, of the customers

of their products, of the local community and finally of the country as a whole.

J. R. D. Tata Starting in the early 1990s, the group has invested in structures and

processes that would gradually align its pro-social and pro-environmental values with

excellence in business endeavors. These efforts culminated in 2003 with the

introduction of The Tata Index for Sustainable Human Development, a pioneering

effort aimed at directing, measuring and enhancing the community work that assists all

TATA companies in their social responsibility efforts. The index had been developed

by the TATA Council for Community Initiatives (TCCI), a council of Tata companies

CEOs chaired by Mr. Kishor Chaukar, in partnership with TATA Quality Management

Services (TQMS). Since June 2004, the Tata Index has been deployed annually to

assure continuous improvement in the delivery of social responsibility initiatives at the

company level. In 2005, reporting companies averaged almost half of its intended goal,

i.e. 452.95 points on a 1000 point scale, with companies scoring as high as 712 (Tata

Steel). In 2006/07, TCS scored 490. Tata Motors, now at 663, was one of the best

performers on corporate sustainability within the group. The purpose behind the Index

was to seed new benchmarks and motivates continuous innovation in sustainability

across each companys operations. TCCI offered a common platform where eachcompany could share their challenges and achievements with the others and would

learn how to nurture stronger internal leadership structures that promoted business

excellence the TATA way. The idea of explicitly tracking social impact originated

with Tata Sons. Under the Chairmanship of Mr. Ratan N. Tata, the Group searched for

12


13/25

PROJECT

a new way to harness collective synergies among the Tata companies. This led to the

Business Excellence Model (TBEM), a detailed business process reform which began

formalizing the set of core values that the Tatas had lived by for over a century. One of

the offshoots of this effort was the adoption of a more systematic, unified TATA

approach to CSR, rooted in Jamsetji Tatas social legacy, and the creation of the Tata

Index for Sustainable Human Development, a trendsetting approach to mapping and

measuring the social development endeavors of Tata Group companies.

The Index itself was a remarkable innovation. First, it broke down sustainability

responses into three nested levels: systems (275/1000), people (175/1000) and program

(550/1000), making it easy to measure, and easy to identify areas for improvement.

Second, the indexation exercise places great emphasis on process not just outcomes.

For example, here is how a company might apply the index to its own operations:

For each assessment, the Corporate Sustainability Facilitator representing a Tata

company and the Community Head for the project would also identify specific

opportunities for improvement. These might read: The Company mentions of a regular

convention of review. However, it is not clear as to how the review findings are

incorporated into Companys strategy. or The Company trains its Facilitators /

project leaders for leadership. However, it is not clear how the training imparted is

actually benefiting them. or The Company declares underprivileged women as its

key community. However, there is no evidence on the process of identification of this

community. or The Company states that the key community has

benefited in terms of self-reliance. However, it is not clear as to how the key

community has actually built self-reliance.

Tata Steel: THE QUEST FOR BUSINESS EXCELLENCE

13


14/25

PROJECT

Tata Steels 3C model for excellence More than the use of tools and techniques, Tata

Steels journey to international competitiveness had much to do with the personal

commitment and change-oriented leadership of its top management with an intense

focus on the 3Cs: change, costs, and customers. The top managements checklist for

driving change in the company included the following:

Lead the change process and take personal ownership; the responsibility cannot

be delegated.

Be the role model and the first to change; personal involvement and investment

of time is the key to success.

Create endless opportunities for two-way communication within the company.

Create a sense of urgency (not panic); embrace change even when it does not

appear necessary.

Set up a small hand-picked group to drive change in the organization; train andempower them.

Set key result areas (KRAs) carefully; include the top management in it. In Tata

Steel, this is now done through the Managing Directors balanced scorecard.

14


15/25

PROJECT

Through this process, the Managing Director puts himself through the

credibility test by including himself in the accountability process.

Tata Business Excellence Model (TBEM)

According to a report by World Steel Dynamics (WSD), in April 2001, Tata

Steel(TISCO) was ranked as the world's lowest cost producer of steel (Refer Exhibit I).

TISCO's operating cost at the 'hot metal' (liquid) stage was $75 per tonne. The

company's cost per tonne of finished steel stood at $152 in the financial year 2001. The

ranking was based on several factors including low operating costs, special company

culture, good profitability, skilled and productive workforce, high quality and niche

products and proactive and experienced management. According to the media reports,TISCO's achievement of becoming the lowest cost producer of steel in the world was

mainly attributed to the company's successful implementation of the Tata Business

Excellence Model (TBEM). Based on the Malcolm Baldrige Award, TBEM aimed at

establishing a link between business performance and individual performance. TISCO

was the first and only Tata group company to achieve the JRD QV award (Refer

Exhibit II) in 2000, having scored 616 points out of 1000 points on the TBEM scale.

The adoption of TBEM had helped not only TISCO, but also several other companies

in the Tata group (Refer Exhibit III) in enhancing the quality of their business

processes. The objective of TBEM was to facilitate every Tata group company achieve

business excellence and establish themselves as leaders in their respective industries.

The implementation of TBEM had benefited several Tata group companies by

improving their productivity significantly. R Gopalakrishnan, Executive Director, Tata

Sons Limited,5 commented on the benefits of TBEM: "The renewal of Tata group is

principally on the basis of TBEM. The model itself is under constant updation so as to

keep itself fresh, vibrant, and contemporary. The model has done a great deal of good

for the Tata group as a whole."

The significance of 'organizational excellence' was not much appreciated in the

corporate sector as late as 1982, when Thomas Peters and Robert Waterman's book, 'In

Search of Excellence' was published.

15


16/25

PROJECT

Earlier, organizations focused on a single aspect to improve quality, for example,

improving product and process, or systems quality. However, focusing only on a single

aspect was considered insufficient in improving the overall organizational performance.

Peters and Waterman proposed that there was a need for a broad-based business

excellence model for businesses that should focus on an organization-wide thrust to

improve quality. In 1987, Malcolm Baldrige proposed a business excellence model for

achieving organizational excellence in quality management. Companies that

successfully adopted the model were given the Malcolm Baldrige National Quality

(MBNQ) Value Award, introduced in the US in 1988. This award was conferred

exclusively on the US-based companies.

16


17/25

PROJECT

Further to the above developments, the Tata Group introduced the Tata Business

Excellence Model in 1996. By implementing TBEM, the management of the Group

aimed at bringing about organizational transformation, which was necessitated by the

rising global competition. The objective of TBEM was to improve the performance and

efficiency of the Tata Group in various business areas and to enable them to

successfully overcome the global competitive challenges. However, the management

felt that the attitudes and perceptions of people had to be changed first before a major

change could be brought about in the functioning of the organization.

Business excellence has been embedded in the Tata Group through a holistic

methodology that enables companies to heed the call of quality. We have adopted theTata Business Excellence Model (TBEM) to achieve well-defined levels of business

excellence. TBEM is a framework defining the quality movement in the TATA Group.

It has been adapted in the early 1990s from the renowned Malcolm Baldrige

archetype. The Model works under the aegis of Tata Quality Management Services

(TQMS), an in-house organization mandated to help different Tata companies achieve

their business objectives through specific processes. The TBEM methodology has been

molded to deliver strategic direction and drive business improvement. It contains

elements that enable us to capture the best of global business processes and practices. It

translates into an ability to evolve and stay in step with ever-changing business

performance parameters.

Knowledge Management in Tata Steel:

Tata Steel decided to embark on formal KM initiative in the year 1999. The beginning

was made in July99 to place a Knowledge Management (KM) programme for the

company to systematically & formally share and transfer learning concepts, best

practices and other implicit knowledge. The emphasis on knowledge management was

clearly demonstrated in 1999 while coining the vision statement of the company

which read Tata Steel enters the new millennium with the confidence of learning and

knowledge based organization... Then followed the new vision statement, co-

created by the employees in 2001 (which again identified Manage Knowledge as one

17


18/25

PROJECT

of the main pillars in strategy to become EVA+ by 2007. This clearly indicated the

thrust Senior Management wanted on an initiative like KM. . The essence of

Knowledge management is to capture the available abundant knowledge assets either in

form of tacit (experience, learning from failure, thumb rules, etc.) or explicit (literature,

reports, failure analysis etc.), to organize and transform the captured knowledge, and to

facilitate its usage at right place and at the right time.

Phases of Knowledge Management

Starting from a small sapling in 1999, the KM system of Tata Steel underwent a lot of

improvements, and changes. In the process, it passed through many learning phases to

reach its current state. The various phases of KM spiral at Tata Steel are shown in Fig

2. In its latest phase, the Knowledge Management has been identified as one of the

main enablers to make TATA Steel self reliant in technology which will enable the

company global player in new future.

18


19/25

PROJECT

Stakeholders in KM Tata Steel aims at capturing knowledge from various working

groups and outside agencies who play a major role in day-to-day functioning. The

major stakeholders covered under KM being:

Senior Management

Officers

Employees (Supervisors & Workmen)

Customers

Supplier

Experts (In & outside company)

MARKETING DEPARTMENT

Innovative Market Place Initiatives:

For Retail Customers: Innovation with Retail Customers such as Distributors,

Retailers, End Customer, Fabricator, Smaller OEs has been done by:1) E- Linking the distributors

2) Retail Value Management

3) Brand Management

4) Recommended Consumer Price

5) Retail Identity Programme

For Institutional Customers:

Key Accounts are handled using innovations like:1) Customer Value Management

2) Advanced Planning System

3) Dedicated Service Centers

4) Tie-up with global majors for high end products

19


20/25

PROJECT

5) EVI for the Auto Segment

6) Long tem Contracting

Tata Steel Limited Sales and Distribution Indian Sales Tata Steel Limited currently

sells approximately 91% of its Indian operations production in the Indian market. In

India, Tata Steel Limited sells the majority of its steel products to the construction and

infrastructure industries, the automotive industry and the general engineering industry.

Tata Steel Limiteds principal products sold to the Indian construction and

infrastructure industry are long products. Tata Steel Limited targets large construction

companies involved in infrastructure projects as customers. Tata Steel Limiteds

principal products for the Indian automotive industry are hot rolled sheets, cold rolled

sheets and galvanized products. Tata Steel Limiteds Indian operations supplied

664,000 tonnes of products to the Indian automotive industry in the year ended March

31, 2006 and 856,881 tonnes in the year ended March 31, 2007. Tata Steel Limited

supplies such automotive-grade steel products to a significant proportion of Indian

automotive industry participants, including Tata Motors, Mahindra & Mahindra,

Toyota Kirloskar Motor Limited, Honda Siel Car India and Honda Motorcycle &

Scooter India Limited. Tata Steel Limiteds principal products for the Indian generalengineering industry are cold rolled sheets and galvanized sheets. Tata Steel Limited

also a supplier of steel to the appliance sector, including to customers such as

Whirlpool, LG and Voltas.

Indian Distribution and MarketingTata Steel Limited delivers steel products to Indian

customers through:

direct supply channels,

21 stockyards,

25 consignment agents,

15 external processing agents and

20


21/25

PROJECT

A network of distributors and retailers operating through 22 sales locations in

India.

Because Tata Steel Limiteds operations are located in eastern India while much of the

market for steel is on the west coast of India, Tata Steel Limited incurs additional

inland transportation costs relative to its competitors that are in closer proximity to the

bulk of the Indian market. In addition, Tata Steel Limiteds Jamshedpur plant is

approximately 250 kilometers away from the nearest port, which adds to Tata Steel

Limiteds distribution costs. Tata Steel Limited has established brands for many of its

products in the Indian market. For example, Tata Steelium, the steel with soul, is one

of the first branded cold rolled steel products in India. Tata Steel Limited is also using

the Tata Shaktee brand for its corrugated galvanized sheets, Tata Steelium for cold

rolled sheets, Tata Tiscon for rebars and Tata Wiron for wires. Products manufactured

by Tata Steel Limiteds tubes unit are marketed under three brands: Tata Pipes, Tata

Structura and Tata Precision.

Tata Steel Limited has introduced a number of marketing initiatives in recent years. For

example, Tata Steel Limited was the first company in India to introduce the concept of

a recommended consumer price on a steel product, by fixing the price of Tata Tiscon

products for a set period of time according to a pre-determined price list. In 2006,

through its Steelium service center, Tata Steel Limited trained through 29 sessions in

eight different languages, approximately 550 dealers of Tata Shaktee products on

various selling techniques. Through initiatives such as Customer Value Management

and Retail Value Management, Tata Steel Limited has developed new collaborative

approaches to meet its customers needs. In addition, on December 12, 2005, Tata Steel

Limited inaugurated its Steel junction store. As Indias first organized steel retail store,

21


22/25

PROJECT

Steel junction is a mid-size specialty store that sells a range of steel products. The store

was launched with the aim of raising awareness about the versatility of steel products

and to promote a new and more direct venue for selling steel products to end-users.

HUMAN RESOURCE DEPARTMENT

Over the years TATA Steel has done pioneering innovation in HR stream and have set

standards and benchmarks for the industry to follow. Some of the innovative started

were:

1912 - 8 hour workday

1916 - Social Welfare Scheme launched for employees

1920 - Leave with pay

1934-profit sharing bonus

1934 - Tata Steel responded to earthquake in its Bihar province with relief

supplies

1951 - Planned family norms promoted at community level

1970 Included Corporate Social Responsibility in its Articles of Association

1958 - 225 acre Jubilee Park created for the citizens of Jamshedpur

1979 - Launched concerted rural development initiatives

22


23/25

PROJECT

1995- Tata Business Excellence Model - makes sustainable growth a priority

and has I included this in its key enterprises process

1999- Tata Code of Conduct - mandates good governance ethical behavior by

organizes organizations as well as each and every employee.

1995- Tata Council for Community Initiatives provides the superstructure for

CSR eff efforts across the group

2003- Tata Index for Sustainable Development - a CSR measure adopted across

the Tata G Group many landmarks in Labor Welfare:

1915 - Free Medical Aid to all employees and dependent family members

1917 - Welfare Department set up

1956 - Joint Consultation instituted with Union Management Agreement

1990 - Incentive for Higher Technical Education

2001 - Family Benefit Scheme

2003 - R D Tata Technical Education Centre

2003 - Initiated process for SA 8000 certification

2004 - Completed 75 years of Industrial Harmony

2004 - Inserted clause against Sexual Harassment in the Works Standing Order

Sustainable Development:

Having espoused the philosophy of Sustainable Development, the Companys

operations, including all its out locations are inextricably interlinked with the

progress of the enterprise, the welfare of the people and the health of the

environment. As global initiatives in promoting responsible business gather

23


24/25

PROJECT

momentum, Tata Steel stands as a beacon of social and environmental

commitment, not only in India but across the world as well. Today, Tata Steel is

well positioned to take forward its 100-year ethos with renewed vigour, having

formally integrated its economic, environmental and social performance

reporting. Tata Steels commitment to sustainable development and growth is

amply reflected in its Vision. The Company has identified and is proactively

engaged in addressing economic sustainability, environmental concern and the

social needs of its stakeholders.

The core issue, however, identified by Tata Steel, which underpins all these is

Value Balancing; such that long-term partnerships are established with its

stakeholders. Sustainability has also been integrated into the business systems at

Tata Steel. Inputs from stakeholders through formal and informal processes

allow the Company to focus on their concerns, to identify issues and delineate

strategic objectives.

CONCLUSION

Looking to the future, Tata Steel has announced that the company would be focusing

on co-branding initiatives with its high-end customers such as Telco, Ashok Leyland.

Company sources say that initially Tata Steel would be focusing on the automobile

sector; later the co-branding initiative will be expanded to the consumer durables sector

also.

Tata Steel also announced that it would focus on improving its product mix by

introducing high-end products.

24


25/25

PROJECT

Tata Steel assumes that the Jamshedpur plant would be able to raise its capacity to 7

Million Tons Per Annum by the coming year itself. Tata Steel is also planning to

enhance its productive capability by way of investments and organic growth.

Tata Steel wants to open three greenfield steel plants in eastern India. It plans to open a

12 Million Tons Per Annum plant in Jharkhand, a 5 Million Tons Per Annum plant in

Chattisgarh, and a 6 Million Tons Per Annum plant in Orissa. It also plans to open

offshore steel plants in Iran and Bangladesh.

BIBIOGRAPHY

www.wikipedia.com

www.tatasteel.co.in

http://finance.mapsofworld.com/company/steel/tata.html

25

samrat final project

Documents