TATA STEEL

Introduction:

Tata Steel, 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 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).
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 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 management

effectiveness 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, still consolidated 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. 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. Apart from the existing backward
integration with its own iron ore mines and collieries, 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. NatSteel Holdings produces about 2 MTPA of steel products
across its regional operations in seven countries. 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, 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
Globalisation objective of Tata Steel.

Tata Steel’s vision is to be the global steel industry ben

Tata Iron & Steel Company

BUSINESS STRATEGY: STRATEGY MANAGEMENT AT TATA STEEL2009
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3. Tata steel vision & mission statement
The vision of a company provides managers with unity of direction that
transcends a well-conceived vision of an organization comprises two main
components. The first component is Core Ideology and second is
Envisioned Future. Core Ideology defines “what an organization stands for,
and why they exist” that never changes and sets forth envisioned future
that defines “what an organization aspires to become to achieve to create”
that demands significant change and progress.
3.1 Vision Statement of Tata Steel
“We aspire to be the global steel industry benchmark for Value Creation and
Corporate Citizenship”
We make the difference through:

Our people, by fostering team work, nurturing talent, enhancing leadership

capability and acting
with pace, pride and passion.

Our offer, by becoming the supplier of choice, delivering premium products and
services, and
creating value with our customers.

Our innovative approach, by developing leading edge solutions in technology,

processes and
products.
Our conduct, by providing a safe working place, respecting the environment,
caring for our
communities and demonstrating high ethical standards.
Elucidation:
A Vision of an organization should reflect the concerns of other
stakeholders such as shareholders, customers, the local community and
society in order to be effective. The vision statement of Tata Steel also
stresses on people concerns. The vision statement of Tata Steel is
describing that “We aspires to become the global steel industry benchmark”
which gives the view of Tata Steel`s future direction and course of business
activity.
TATA Steel lays stress on their core ideology in vision statement by taking
People, Suppliers and Ethics into account. It also emphasizes on their
innovative approach for cost leadership and differentiation in their products
and process. The vision statement of Tata Steel provides managers with
unity of direction that transcends individuals, parochial and transitory
needs.

Tata Steel enters the new millennium with the confidence of a learning,
knowledge-based and happy organization. Tata Steel’s vision is to be the
global steel industry ben.We will establish ourselves as the supplier of
choice by delighting our customers with our services and our products. In
the coming decade, we will become the most cost-competitive steel plant
and so serve the community and the nation. Where Tata Steel ventures
others will follow. TATA Steel has unveiled its Vision 2007
statement, which is aimed at ensuring that the steel major
emerges as an EVA (economic value addition)-positive company
with a profit before tax of between Rs 800 crore and Rs 1,000
crore within the next three years.

The company also hopes to ``seize the opportunities of tomorrow

and create a future that will make us an EVA-positive company''.
The vision statement has drawn on inputs gathered from
employees of the company.
Mission:
Consistent with the vision and values of the founder Jamsetji Tata, Tata
Steel strives to strengthen India's industrial base through the effective
utilization of men 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
essential ingredients of a strong and stable enterprise, profitability provides
the main spark for economic activity. Overall, the Company seeks to scale
heights of excellence in all that it does in an atmosphere free from fear, and
one, which encourages innovativeness and creativity.
Mission statement of Tata Steel

Achieve sustainable, profitable growth in steel and related businesses.

Create differential value for our customers through innovative offerings

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Continuous improvement of business processes and technologies.

Foster partnership with key stake holders.

Enhance employees' competencies to create a high performing and

innovative organization. Be a responsible corporate citizen and enhance
the quality of life of employees and key community.
Elucidation
Tata Steel`s mission embodies the business philosophy of strategic
decision makers like to achieve sustainable and profitable growth, it reflects
the firm`s self-concept like being the high performer and innovative
organization.
A well designed mission statement of an organization should talk about the
customer needs, the company activities, technologies and competencies.
In the same way mission statement of the Tata Steel describes to create
differential value for the customers with the help of continuous
improvement in their business process and technology.