Professional Documents
Culture Documents
Submitted By:-
Anindya Sankar Kundu
(08BS0000328)
Sec –A
Introduction
Tata Steel is headquartered in Mumbai, Maharashtra, India. The Company’s Stocks are listed
and traded on the Bombay Stock Exchange, the National Stock Exchange, at Mumbai & New
Delhi respectively, as also on other major Exchanges all over India.
The Second Phase (1985-1992), involving a project cost of Rs. 780 crores, saw for the first time
in India coal injection in blast furnaces and coke oven battery with 54 ovens using stamp-
charging technology. Apart from this, a 0.3 mtpa (million tonne per annum) wire rod mill, a 2.5
mtpa sinter plant, a bedding and blending plant and a waste recycling plant of 1 mtpa were
installed.
The company recently commissioned its 1.2 mt (million tonne) capacity Cold Rolling Mill
Complex at a project cost of Rs. 1600 crores. This Four Phase Modernization Programme has
enabled Tata Steel to be equipped with the most modern steel making facilities in the world.
As of today, the Tata Steel facility has a Hot Metal capacity of 3.8mtpa and a Crude Steel
capacity of 3.5 mtpa, corresponding to a salable steel capacity of 3.4 mtpa.
It is Tata Steel’s constant endeavor to consolidate its position in the international market.
World Steel Dynamics and now called as “World Class Steel Makers”.
The Fifth Phase lays stress on the utilization of the intellectual capabilities of the employees to
generate sustainable value for the stakeholders. Rather than create new physical assets, the
focus has now shifted to how best to use those assets to get optimum value. The human
resource management division of Tata Steel has developed what is called the “mindset
programme”, which is designed to bring change among the employees. The programme seeks
to inculcate in the employees self awareness and a positive outlook.
In order to improve its performance further the company engaged the internationally reputed
consultants Mckinsey & Co, who suggested the Total Operational Performance (TOP)
Enhancement Programme. A structured, time bound, team based programme, it uses the
creativity and energy of the employees to increase output with minimum investment and in
the shortest possible time.
Tata Steel today is rapidly expanding capacity and plans to produce 15 Mt of steel annually by
2010. Tata Steel is currently ranked the world's 6th largest steel company and some of its
future projects are:
India:
Overseas:
The TATA group takes the name of its founder, Jamsetji Tata
Merger & acquisition
On January 31, 2007, Tata Steel Limited (Tata Steel), one of the leading steel producers in
India, acquired the Anglo Dutch steel producer Corus Group Plc (Corus) for US$ 12.11 billion (€ 8.5
billion). The process of acquisition concluded only after nine rounds of bidding against the other
bidder for Corus - the Brazil based Companhia Siderurgica Nacional (CSN).
This acquisition was the biggest overseas acquisition by an Indian company. Tata Steel emerged as the
fifth largest steel producer in the world after the acquisition. The acquisition gave Tata Steel access to
Corus' strong distribution network in Europe.
Corus' expertise in making the grades of steel used in automobiles and in aerospace could be used to
boost Tata Steel's supplies to the Indian automobile market. Corus in turn was expected to benefit
from Tata Steel's expertise in low cost manufacturing of steel. However, some financial experts
claimed that the price paid by Tata Steel (608 pence per share of Corus) for the acquisition was too
high.
Tata Steel Limited signed an agreement to acquire the remaining 50% stake in Tata Ryerson
Ltd. from Ryerson Inc. for $49 million on June 25, 2009. Tata Ryerson Ltd. will operate as a wholly
owned subsidiary of Tata Steel Limited. Tata Ryerson Ltd. had turnover of $269 million and net profits
of $4.3 million (INR 210 million) for the year ending December 31, 2008. The transaction, subject to
regulatory clearances, is expected to be completed in July 2009
TATA RYERSON
Other Acquisitions
In August 2004, Tata Steel entered into definitive agreements with Singapore based
NatSteel Ltd to acquire its steel business for Singapore $486.4 million (approximately Rs
1,313 crore) in an all cash transaction.
In 2005, Tata Steel acquired 40% Stake in Millennium Steel based in Thailand for $130
million (approx. Rs 600 crore).
In 2007 Tata Steel through its wholly owned Singapore subsidiary, NatSteel Asia Pte Ltd
acquired controlling stake in two rolling mills: SSE Steel Ltd, Vinausteel Ltd located in
Vietnam.
Products and Services
MajorProducts
Flat Products: HR Coils / Sheets / Plates, CR Coils / Sheets, Galvanized Coils / Sheets
Coal / Coke, Iron Ore, Dolomite, Ferro-alloys, Chrome and Chrome Concentrate
MajorServices
Project Studies
Technical Training
Branded products
TATA STEELIUM (Cold Rolled Steel)
TATA BEARINGS
TATA PIPES
(www.corusgroup.com)
(www.tatatinplate.com)
(www.tayo.co.in)
(www.tataryerson.com)
(www.tataref.com)
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.
(www.tatasponge.com)
(www.tatametaliks.com)
(www.tatapigments.com)
(www.jamipol.com)
(www.tmilltd.com)
(www.mjunction.in)
(www.juscoltd.com)
(www.tatabluescopesteel.com)
(www.natsteel.com.sg)
(www.tatasteelthailand.com)
The Chairman of Tata Steel, Mr Ratan Tata will continue to chair the Strategy and Integration
Committee. Mr.Jim Leng, Mr.B Muthuraman, Mr.Philippe Varin, Dr. Tridibesh Mukherjee,
Mr.Rauke Henstra, Mr.Hemant Nerurkar, Mr.Koushik Chatterjee and Mr.Jean-Sébastien
Jacques are members of this Committee.
A Group Centre is created for functions that are to be performed with a common approach
across the Tata Steel Group. These functions are Technology & Integration, Finance, Strategy,
Corporate Relations & Communications and Global Minerals. The executives responsible for
these functions will report to the MD of Tata Steel and the CEO of Corus:
Both Tata Steel and Corus entities will have Executive Committees chaired by the MD, Mr B
Muthuraman and the CEO, Mr Philippe Varin respectively.
A Joint Executive Committee for Tata Steel Group will meet quarterly to review overall
performance against the Group ambition. This committee will be co-chaired by the MD of Tata
Steel and the CEO of Corus.
The war came in 1914 and Tata Steel earned substantial profits during the war, in spite of
selling its steel at controlled prices, at a fraction of the price, to the Government of India and
the likes, besides subscribing huge amounts to Indian War Loans. However, the prices of
machinery and equipment had rocketed during the war and shipments of machinery were lost at
sea because of “enemy action”. On the one hand, the Extensions Programme entailed large
capital expenditure, and on the other, the Indian market got flooded with cheap continental steel
with the falling of import prices of steel from 1921 onwards. The Company was struck with its
worst economic crisis ever. In 1923, it was on the verge of collapse; the net profits fell from
about Rs.11 million in 1920-21 to 0.1 million in 1922-23.
During those crucial years, the House of Tata showed remarkable courage and patience. R.D.
Tata bore the brunt of the crisis and declared that the Company would not be liquidated so long
as he was alive. The steel mill was modernized with the implementation of the Greater
Extensions Programme, by the end of 1924. The Company hardly faced any acute financial
problem thereafter, except a grave situation during the years of the Great Depression.
The Tata Group Companies is one of India's oldest, largest and most respected business
empires. The Group's businesses are spread over seven business sectors. It comprises of 96
companies and operates in six continents. There are some 2,46,000 employees and put together
it has a shareholder base of over two million and market capitalization of $57.6 billion.
The first thing that comes to our mind their Product Quality, Services, Brand, Value & Beliefs.
WHAT MAKES THEM DIFFERENT FROM THEIR
COMPETITORS:
The TATA Group has always sought to be a value – driven organization. These values continue to
direct the Group’s growth and businesses. The five core TATA values underpinning the way we do
business are:
Integrity: We must conduct our business fairly, with honesty and transparency. Everything we
do must stand the test of public scrutiny.
Understanding: We must be caring, show respect, compassion and humanity for our colleagues
and customers around the world, and always work for the benefit of the communities we serve.
Excellence: We must constantly strive to achieve the highest possible standards in our day to
day work and in the quality of the goods and services we provide.
Unity: We must work cohesively with our colleagues across the group and with our customers
and partners around the world, building strong relationship based on tolerance, understanding
and mutual cooperation.
Responsibility: We must continue to be responsible, sensitive to the countries, communities
and environments in which we work, always ensuring that what comes from people goes back
to the people many times over.
1. Tata Steel’s Indian operations are self-sufficient in the case of its major raw material iron ore
through its captive mines.
2. 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. Several thrust area projects were taken up
3. Tata had a strong retail and distribution network in India and SE Asia. Tata was a major
supplier to the Indian auto industry and the demand for value added steel products was growing
in this market.
4. The Company is on its way to reach a crude steel capacity of 10 million tonnes per annum by
FY 2011. The first phase of reaching the crude steel capacity of 6.8 million tonnes per annum,
Brown field projects, is nearing completion
5. Tata Steel has been on a path of accelerated growth with foray into several geographies and
markets through aggressive mergers and acquisitions.
6. Tata Steel addresses the risk of cyclicality of the Steel industry by marinating rich product mix
and higher value added products whose volatility 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.
7. 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 & Steel making
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