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TURNAROUND EXCELLENCE“THE TINPLATE COMPANY OF

INDIA”

LOGOINTRODUCTION

• Vision 2012 – Be an industry leader in value creation, servicing packaging needs and creating a greener future.

• Born in 1922

• Largest producer of tin coated and tin free steel sheets in India, enjoying 35-40% market share and undoubtedly the industry leader for 85 years.

• Products – Open top sanitary cans, hr pickled coils, full hard coils, etc.

LOGOIMPACT OF GLOBALIZATION IN INDIA

AIM• Reduce trade barriers• Free flow of capital & technology• Free movement of labor

MEASURES TAKEN• Reduction of import duties• Encourage foreign investment• Encourage foreign technology transfer

agreements

LOGOMACRO-ECONOMIC FACTORS

Increasing income

Increasing health consciousness and

convenience needs

Retail boom

Government Policies India to become the food factory of the world Treble the size of processed food Increase the level of processing from 6% to 20% Increase the value addition from 20% to 35% Increase the share in global agricultural trade from 1.5%

to 3%

LOGOPESTEL ANALYSIS

Political •Stiff import duty in the 1980s

•Negotiate with government for rationalization of import duties in 1984

•Approval from government for production of TMBP

•Reduction in tariff in 1996

•Permit closure of HDP in 1999

Economic •Demand for tinplate greater than production in 50s & 60s.

•Cartel of TMBP manufacturers

•Low demand of tinplate in 1980s

LOGOPESTEL ANALYSIS

Social •Indiscipline among workers & supervisors in early 80s

•Exodus of competent engineers

•Stock out of material from 1996 from suppliers

•Shortage of medicine, onions & potatoes in canteen – leading to unrest

•High attrition rate in 1997 – 1998

•VRS to lay off employees in 1999

LOGOPESTEL ANALYSIS

Technological •Up gradation of technology, increase capacity

•Erratic electricity supply

•Hi silicon galvanized sheets in 1981

•Innovative technology in 1992, implementation got delayed

•Revise capacity of plant by Raina

Environmental

•Generate heat in the ambience to around 50 degrees Celsius.

Legal •TISCO consisted in court against BOCL.

LOGOSWOT ANALYSIS

Strengths Weaknesses

TOP and PMS initiatives were started to achieve more than 100% capacity utilization

Price initiatives Placed 6th position on its

TBEM score among all TATA group companies

Quality problem Weak research and

development facilities Inadequate focus on control

mechanism for prevention of lower grade imported tinplates.

Opportunities Threats

Increase of Indian GDP will provide opportunity for growth of packaging spend

Retail boom will increase packaged food products.

Changing food habits and health consciousness of next generation Indians

Innovation in alternative packaging such as HDPE, polyethylene, etc.

Reducing tariff levels on imports result in unscrupulous dumping of lower grade tinplate from CIS countries

Rising cost of tin which has to be imported completely from outside

LOGOSTRATEGIC CHALLENGES AND OPTIONS

Type Strategic Challenge Strategic Option

Global In India and international markets, competition is from world steel majors who have economies of scale, consistency in product offering and also focus on R&D

Address economies of scale.

Improve quality standards.

WTO triggered tariff lowering Enhance cost competitive- ness

Per capita consumption in India, less than 0.3 kg, is one of the lowest. A similar economy, like China, consumes 1 kg.

Increase growth of market size in India

LOGOSTRATEGIC CHALLENGES AND OPTIONS

Type Strategic Challenge Strategic Option

Business 80% of imports are non-prime. Dumped imports impact market share, prices and place in doubt growth for domestic players.

Address dumping and unscrupulous practices

Competition with substitute forms of packaging.

Enhance cost competitive- ness Packaging solutions/ innovations

Operations

Quality yields consistent at 87%.

Check inconsistent process management

Capacity utilization, though increasing, is at a slower rate.

Increase through puts

Customer Overall customer satisfaction steady at 61%.

74% against world class in similar industry

LOGOSTRATEGY TO FACE UP TO THE CHALLENGE

CUSTOMER SATISFACTION

PRODUCT QUALITY

BUSINESS PROCESS REDESIGN

TACTICAL PROCESSES

ORGANIZATIONAL CULTURE

TACTICAL DELIVERY

COMPLIANCE

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Identify the factors which can be reduced well below industry standards

Eliminate the factors that the industry has taken for granted

Raise the factors well above the industry standards

Create factors which the industry has never offered

ENVIRONMEN

T

STRUCTURE

STRATEGY

SCANOPERATIONALIZE

VALUE CREATE VALUE

LOGOCONCLUSION The opening of economy opened up opportunities.

It also possessed threat to many companies.

World class measures such as TPM and business excellence initiatives had helped the Indian tinplate manufacturers to stand back and turn around.

It also helped in gaining competitive advantage in terms of cost, productivity and quality.

However, the time is sharp to undertake future strategies whereby one has to innovate in terms of value and create a niche for itself.

The strategic approach needs a shift from competition to value innovation.

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GROUP MEMBERS:- Amitanshu Srivastava Amrita Das Anamika Dey Aneema Anand Kumar