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Study in detail about the hr policies of mittal steel in detail
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Mittal Steel Company
Mittal Steel Company, N.V.
Type Industry Successor(s) Founded Headquarters Key people Products Revenue Operating income Net income Employees Website
Public Steel ArcelorMittal 1976 in Calcutta, India, 1989 as Ispat International in Sumatra, Indonesia Rotterdam, Netherlands Lakshmi Mittal, Founder, Chairman and CEO Steel, Flat Steel products, Coated Steel, Tubes and Pipes $28.132 billion USD Year to 31 Dec 2005 $4.746 billion (2005) $3.365 billion (2005) 320,000 (2006) Mittal Steel
Mittal Steel Company N.V. was one of the world's largest steel producers by volume, and also one of the largest in turnover. The company is now part of ArcelorMittal. CEO Lakshmi Mittal's family owned 88% of the company. Mittal Steel was based in Rotterdam but, managed from London by Mittal and his son Aditya. It was formed when Ispat International N.V. acquired LNM Holdings N.V. (both were already controlled by Lakshmi Mittal) and merged with International Steel Group Inc. (the remnants of Bethlehem Steel, Republic Steel and LTV Steel) in 2004. On 25 June 2006, Mittal Steel decided to takeover Arcelor, with the new company to be called ArcelorMittal. The takeover has been successfully approved by shareholders and directors of Arcelor making L.N. Mittal the largest steel maker in the world.
which formed Ispat International Ltd. In 2005. In 2005. and Karmet. the company acquired Kryvorizhstal. India. In 2009. the company acquired Hamburger Stahlwerke. 4 . the company acquired Polskie Huty Stali. the company signed a Business assistance agreement with Iscor. the company acquired ALFASID and Sidex. and certain Macedonian facilities from Balkan Steel. the company acquired Iron & Steel Company of Trinidad & Tobago. the company acquired Unimétal. the company acquired Sibalsa. and Ispat Shipping.In 1989. the company announced Investment for 12 million tonnes capacity steel plant in Orissa. In 2006. the company hired Deloitte as the primary auditors for the company. In 2005. In 2001. the company acquired Walzdraht Hochfeld GmbH and Stahlwerk Ruhrort. India . the company Acquired a 34% stake in Uttam Galva. the company acquired Nowa Huta. the company merged with Arcelor after much controversy. the company announced the investment of $9 billion in Jharkhand. In 2002. In 2003. In 2004. In 1995. In 2005. the company acquired International Steel Group. In 2006. In 1998. In 1997. In 1997. the company went public as Is pat International NV. In 1994. In 1999. BH Steel. the company acquired Sidbec-Dosco. In 1992. the company acquired Inland Steel Company.
in a board meeting announced that it has accepted a further sweetened offer ($50. £12.6 billion. India to announce a $9 billion investment to build a green field steel plant with a 12 million tonnes per annum production capacity. or $47.34 per share (€25.74 per share). On 27 January 2006 it announced a $23. In 2005 Lakshmi Mittal flew into Jharkhand.7 billion) bid for Arcelor. €37. On 19 May 2006 Mittal increased its offer for Arcelor by 38. On 25 June 2006 Arcelor.3 billion (€18.4bn.68 or €40.7% to $32.4 per share) and the new company would now be called Arcelor Mittal. • • • • • Differential Efficiency & Financial Synergy: Theory of Mergers Operating Synergy & Pure Diversification: Theory of mergers Costs and Benefits of Merger Evaluation of Merger as a Capital Budgeting Decision Calculation of Exchange Ratio 5 . Arcelor Mittal is now by far the largest steelmaker in the world by turnover as well as volume.8 billion in an auction after a controversial earlier sale for a much lower price to a consortium including the son-in-law of ex-President Leonid Kuchma was cancelled by the incoming government of President Viktor Yushchenko.8bn.Bids and acquisitions In October 2005 Mittal Steel acquired Ukrainian steel manufacturer Kryvorizhstal for $4. controlling 10% of the total world steel output. thus successfully ending one of the most controversial and publicised takeover bids in modern corporate history.
They will also increase the annual contributions to the british steel fund. the biggest steel company in the uk.2002.1bn]. in 6 . tata has offered 455 pence per share and pledged to contribute euro126 mn to the corus pension fund as part of the deal. The foremost risk is that tata steel will have to pay off huge debt of euro bn . The fast changing global steel industry is witneesing the increasing trend of consolidation and this take over is done at the right time with the right partner for right terms.if there is an economic downturn in future.2001 with the merger of the three European group: the French usinor. But corus has accepted the deal at euro 4. Spanish aceralia and the Luxembourg arbed. Corus was formed after the merger between British steel and Dutch group hoogovens in the year 1999. There are a few risks in this deal. ARCELOR Arcelor was formed on February 19. It is registered in Luxembourg and listed on various stock exchanges on February 18.MAJOR ACQUISITION IN INTERNATIONAL MARKET TATA STEEL’S ACQUISITION OF CORUS India inc. The India steel major has successfully bagged quite a few companies in Asia. it has acquired Corus. Recently. Tata group have taken euro1bn of the debt for buying corus. is on a foreign acquisition spree and Tata steel is leading the pack. Corus is the ninth largest steel company globally and leads the market position in construction and packaging in Europe. Tata steel initially offered $7.64 bn in cash for the acquisition of the uk’s largest steel company.3bn [$8.
INDUSTRY BACKGROUND More than a hundred year old steel industries has grown strongly and steadily through the decades steel industry witnessed a significant restructuring in the last 15 years mainly due to decline in the demand from the central and eastern Europe. During the 1990s. especially more so in automotive steel. The saga of arcelor-mittal merger On January 27. packaging sector and general industries. arcelor has not only crossed its targets but also bolstered its position in the field of production and supply of high value-added steel.6bn. It became the lead supplier of steel to the automotive. house appliances. It has strengthened its position in carbon steel. the industry observed restructuring with the marked regional consolidation among European Union producers. it designed it’s business model by mainly focusing on building position in high margin products. 2006 mittal stunned the global steel industry with the launch of a surprise bid for its nearest rival arcelor with an unsolicited offer of euro18. construction. The key strategy of arcelor in international development is to maintain balance between high growth emerging markets and supporting multinational clients.order to maximize the generation of cash and to ensure the sustained profitability. Mittal made an offer of 4 mittal shares plus 7 . WITHIN four year of its establishment.
The alternative offer were stock offer of 16 mittal shares for 15 arcelor shares or cash offer 28. one vote for one share.e. After three years.21 for each arcelor share and the proration of aggregate consideration was 25%cash and 75% stock. which held 875 share capital and a lock-upper of five years. the shareholders will be electing their Board of directors. LN Mittal will be from Mittal Steel. However. both the companies have not yet come to a consent regarding Canadian steel maker Dofasco that arcelor acquired in January 2006. three executives will be from Mittal Steel and the chairman of the new company will propose the CEO.5% ownership.6 cash for 12 Arcelor share with an option to receive more cash or shares subject to 13 % cash and 69% stock in aggregate. Kinsch of arcelor will become the chairman and LN Mittal will be the president of the arcelor Mittal wherein. subject to certain exceptions. Under the agreement.25cashfor every five shares of arcelor. The latest bid offers 13Mittal shares plus 150.35. three representatives of Arcelor shareholders and three representatives of employees. all the shareholders will have identical voting and economic rights. The Best Combination 8 . four executives will be from Arcelor. In addition to this condition. mittal also wanted to sell Dofasco to ThyssenKrupp for 3. Mittal was ready to reimburse the payment of break fee by arcelor to dofasco and the earning of dofasco before its sale will be transferred to the combined group. Arcelir investors retain 50. Mittal kept few conditions in his offer that there should be a minimum accepted of more than 50%and also no change in the arcelor substance during the offer. The management board will be comprised of seven executive among which.8 bn. i. Mittal family. Regardless of holding period. the merged firm will be called “Arcelor Mittal”.
Mittal Steel and Arcelor are quite complimentary in their business leading to a minimal overlap in geographic and product fit. The two Fortune-500 corporate entities are expected to synergise each other’s strengths to promote energy security for India with global resources. The new company with its 61 plants in 27 countries will lead the major markets like North America. Western Europe. The combined company will immediately achieve industry leadership by dwarfing other steel makers with the production capacity of over 120 million tons a year which is approximately 10% of global steel production. This MoU is seen as the beginning of that journey. It will produce three times more than capitalization of $46 bn. Eastern Europe and Africa. the combination of these two top companies leads the consolidation to new to new level making Arcelor Mittal as the Numero Uno. where the Mittal Group will bring in its clout in the hydrocarbon rich countries (in 9 . 2005 at 12:14 PM ONGC Group has established two overseas joint venture companies. With very limited domestic hydrocarbon resources. appliances and automotive sector with strong R&D and in the European market arcelor enjoys the similar position. with the world’s largest steel group –Mittal Steel. In the US Mittal steel is the leading supplier to the packaging.Arcelor is the number one steel number one steel company by revenue whereas Mittal is the number one steel company in terms of shipments. Mittal Steel Forms Two Joint Ventures with ONGC Published on July 25. securing equity Oil and Gas from abroad is India’s only sustainable option to fuel the growth of its developing economy. South America. Mittal Steel’s mills produce lower-quality steel that is generally sold in open market while Arcelor focuses on high-quality steel for long-term customers.
Subir Raha is a visionary manager. Lakshmi N Mittal told journalists that more than half a dozen countries. have good business opportunities in Oil and Gas. “Mr. One of the joint ventures is between ONGC Videsh Limited (OVL) and Mittal Investments Sarl (the controlling shareholder of Mittal Steel company N. between ONGC and Mittal Investments Sarl. This Joint Venture – ONGC Mittal Energy Limited (OMEL) .Central Asia and Africa) where it operates.will work to source equity Oil and Gas in various countries. where his steel projects are running. to facilitate obtaining equity Oil and Gas. Two overseas joint venture companies have been established as a result of the MoU inked on 23rd July. Both of these will be registered outside India .in a European Union country . 98 per cent of the equity of this Joint Venture will be held by OVL and Mittal in 51:49 ratio.V. Mr. is called ONGC Mittal Energy Services Limited (OMESL). capable of thinking out-of-the-box 10 .will help in raising the colossal capital to attain energy security for the country. L N Mittal is an unusual Indian who thinks global. “the Indian Oil industry wants to fuse the energies of all sectors . This will for trading and shipping of Oil and Gas (including LNG) sourced through the other Joint Venture. and wholly owned by Mr. the balance 2 per cent will be with financial institutions. Mr. The second joint venture. The shareholding pattern in this second joint venture will be similar as the first one.” The Minister said that the coming together of the two giants – the largest corporate in the private sector Mittal Steel and the largest corporate in the public sector ONGC .for tax management purposes. domestic and foreign – for a larger national cause of energy security. Addressing a Press Conference organized in New Delhi just after the signing of the MoU. “Our experience in such countries and our exposure to commodity business is expected to help ONGC in meeting the national energy needs”. The Hon’ble Minister of Petroleum & Natural Gas and Panchayati Raj Mr. Mani Shankar Aiyar said that though the Krishnamurthy Committee has not favoured the merger of Oil PSEs.public and private. Lakshmi N Mittal and family).
Lukoilnews 12 December 2006 Mumbai: Mittal Steel. Mittal Steel has already on its own picked three per cent stake 11 .” Mittal Steel floats joint venture with Total.and reaching out to the stars. Given these. the Minister said that the Bay of Bengal is a great treasure house of Natural Gas. which had last year announced its entry into oil and gas business through two joint ventures with the Oil and Natural Gas Corporation (ONGC). has now entered into separate deals with Total of France and Lukoil of Russia for acquisition of oilfields in Africa and Central Asia. I am optimistic about ONGC and Mittal Steel restoring India to the vanguard of global powers. M S Srinivasan said this synergy between the two titans – ONGC: India’s showpiece to the world and Mittal Steel: the steel-makers to the world – will help India in the global arena while sourcing equity Oil and Gas. Mr. in India and in the world. where we stand today. “However. we look forward to the future with great optimism and confidence in our collective capability and synergy to Make Tomorrow Brighter. headed by L N Mittal. even in the most optimistic scenario.”Lauding the role domestic E&P companies like ONGC. the country will need to access Natural Gas from abroad. Subir Raha said that launch of this private public partnership has a crucial message – celebration of India’s entrepreneurship. “Given the unstinted support and guidance of the Hon’ble Minister and the Government of India and the commitment of both the organizations. I am quite confident that we will be able to take very important and substantive steps forward to obtain energy security for India. the world's largest steel company. if it wants to grow as per the projections of 8 per cent or even beyond that. So.” Additional Secretary in MoP&NG Mr.
Mittal Steel is also looking at taking stake in big oil and gas projects in Africa and Central Asia. 2010 September 07. has signed a deal with the Hinduja group for sourcing of LNG and is negotiating an OMEL-type agreement with the multi-billion dollar group.in Chevron’s under-construction $6 billion Okolona Liquefied Natural Gas (OK-LNG) project in Nigeria. is showing the first signs of falling apart of the pact. The company also entered into an agreement with Lukoil for specific acquisitions in Central Asia. Mittal Steel had signed a pact with Total to jointly acquire oil and gas properties. and trade in oil and gas produced from such fields. last month. In June. ONGC-Mittal Energy Ltd (OMEL) has landed three oil blocks in Nigeria. but progress on OMESL had been slow due to ONGC''s new management losing interest in the venture. a joint venture company that was to trade and ship oil and gas.2010 Arcelor Mittal. particularly in Kazakhstan. The OK-LNG field is expected to produce 4. including LNG. industry sources said. Steel tycoon Lakshmi Mittal who is not happy with the progress of ONGC-Mittal Energy Services Ltd (OMESL). ONGC. ArcelorMittal & IndiaBulls to start joint venture mines in India Posted on September 17.5-million tonnes per annum of LNG. the world’s largest steelmaker & Indiabulls Real Estate are planning to form a joint 12 . particularly in Africa. this year. meanwhile.
The companies not yet specified the investments that they are going to invest in their business. Arcelor Mittal.venture to acquire iron-ore and coal mines in India. Its plans for steel projects in eastern India are yet to take off. Gagan banga the Executive director of IndiaBulls said to newspapers that “The joint venture will look at all mining opportunities in India. while for captive purposes. Gagan banga the Executive director of India Bulls said to newspapers that “The joint venture will look at all mining opportunities in India.5 billion. Its plans for steel projects in eastern India are yet to take off.8% of India bulls Power has already owned by arcelor mittal according to june30 report given by stock exchange. coal and iron ore are the two minerals we will be interested in”.5 billion. coal and iron ore are the two minerals we will be interested in”. ArcelorMittal planning to build a six-million-tonnes-ayear steel plant in the southern Karnataka state for that they ready to spend $6. while for captive purposes.8% ofIndiabulls Power has already owned by arcelor mittal accordingto june30 report given by stock exchange 13 . The companies not yet specified the investments that they aregoing to invest in their business. the world’s largest steelmaker& India bulls Real Estate are planning to form a joint venture to acquire iron-ore and coal mines in India. Indiabulls Real Estate subunit Indianbulls power is buildingseveral coal-fired power plants in several parts of India & 8. Arcelor Mittal planning to build a six-million-tonnes-a-year steel plant in the southern Karnataka state for that they ready to spend$6. India bulls Real Estate subunit Indian bulls power is building several coal-fired power plants in several parts of India & 8.
Over the longer term.Hr policies of mittal Innovation R&D Innovation is a mindset at ArcelorMittal. steel solutions and cuttingedge technologies. Not only are we the largest steelmaker by volume but we offer the broadest range of steel grades. we continue to work at Cutting-edge steel products. enabling us to develop the products and solutions that will meet their ever-growing demands. solutions and process technologies 14 . Close cooperation with customers involving mutual trust. an open-minded approach and permanent exchanges of personnel .helps foster the spirit of innovation. new steel products.
Personal Skills.Training and Development Learning is a continual process in DuPont. DuPont recognizes the effectiveness of experiential learning and values "on-the-job “training as a primary means of development. The Spirit & The Letter. The DuPont University taps on the expertise of external training providers and the company's own functional experts to offer a wide range of courses in areas such as Leadership & Management. known as Targeted Development. which encourages any employee to report integrity concerns without fear of reprisal. Formal training is another important avenue for gaining new skills. which every employee supports with a signed pledge. Information Technology. Finance. Sales &Marketing. 15 . DuPont also offers a program that provides financial assistance to employees pursuing courses at academic institutions Operating with Integrity How we deliver results is as important as the results themselves. there are opportunities to enhance your professional and personal skills. Mittal seeks to lead in workplace and marketplace integrity by respecting the human rights of everyone touched by our business. They are further enabled by our ombudsperson process. As your career progresses. and by enforcing legal and financial compliance. Human Resources. The company's collaboration with many leading universities. and industry & professional organizations also often present unique developmental experiences. These commitments are detailed in our integrity policy. companies. helps you and your supervisor in planning your development to meet both business and personal goals. research institutions. and Safety & Health. A formal process. Other development opportunities include training sessions and seminars presented by industry or professional organizations. Manufacturing. Each business within the company has ongoing training programs that are designed specifically to maximize the performance of its employees in meeting business objectives.
and their Lifestyle Mittal offers innovative programs to help our eligible employees gain more value from their healthcare benefits. tools and services. education. Naturally. or get a loan to help pay for their family’s higher education. Through Health Ahead. the passion that our people bring to their work 16 . industry-leading site certification program that will recognize excellence in worksite health Learning and leadership GE believes in developing the talent of new employees with programs designed to give in-depth experience and build skills that are crucial to our long-term success.Rewards and benefits Mittal strives to provide competitive employee benefits packages in the regions and industries in which we have a presence. Our heritage is built on continuous learning. health and other benefit plans are designed to help eligible employees make the best decisions for themselves. grow their career. mittal has further committed to improve the health of our employees and their families by creating a 'culture of health' which will deliver onsite and on-line programs. employees can take advantage of tuition reimbursement benefits to help improve their skills. We have also developed a global. their family. Our wide range of employee services. retirement. In addition to the GE Global Learning Program. which is why we invest more than $1billion annually in training and education offerings.
Skills Development . Holiday Homes: Tata Steel has five holiday homes for benefit of employees during vacation. housing facilities to all employees.Non-officers 17 . which continues even after retirement. The Company also offers many programs and resources to support employees including financial management. scholarships etc. when necessary. • Developing People Valuing its people as a great asset. • Housing facilities: Subsidised electricity.extends to their own private worlds. In order to leverage maximum potential of human resource to achieve business objectives the Company recognizes that enrichment of people will help retain a motivated workforce in a competitive environment. GE encourages our people to meet their work commitments while balancing their own life responsibilities. Tata Steel is committed to their development. • Higher studies • water and Monetary incentives to employees acquiring higher qualifications in a related field along with study leave. flexible work arrangements are an integral part of the way we conduct business. family counselling and more. To support this balance. Special Benefits provided for Employees • Medical facilities • Free medical facilities for employees and their family. both in order to benefit the individual and to benefit the Company through increased knowledge and skills. and GE is committed to enabling a healthy balance between the two.
Employees work in clusters of multi-skilled workers and move across and within clusters on improving their skills levels. In order to promote self-directed learning. colour. The Technical Training Institute imparts vocational and basic skills training. The objectives of these programmers are: • To build individual capability by enhancing managerial and functional competencies which are critical to operations. Skills Development Officers Tata Steel Management Development Centre conducts a number of managerial and functional competency based programmers for officers and supervisors. the departments impart on-the-job training. globalization and change. caste. sex.Skill training is a process that begins at the time of an employee joining the company and continues throughout his or her career. Respect for equal opportunities asset out in the Tata Code of Conduct is followed. Equal Opportunities Practices Mittal Steel is an equal opportunity employer and does not discriminate on the basis of race. service and support functions. the Company has introduced e-learning whereby employees can access electronic courses from their departmental e-Learning centres. The HR Policy and Affirmative Action Policy are monitored by the Ethics Counsellor and supported by an effective grievance redressed mechanism. age or nationality. Tata Steel encourages female employees to advance their career with initiatives dedicated towards personal development and 18 . religion. The Company’s Affirmative Action Policy promotes equal access to its employment and opportunities and all decisions are merit based. ancestry. • To build a leadership pipeline in the organization to prepare the people to meet the challenges of growth. marital status.
Work Culture Work culture encourages transparent channels of communication. New inductee’s are always encouraged to voice their ideas by their seniors. Pioneering the concept in India. Policy are monitored by the Ethics Counsellor and supported by an effective grievance redressed mechanism. and respect for new ideas and thoughts. Freedom of association and collective bargaining Tata Steel respects the employees’ right to exercise freedom of association and collective bargaining and provides appropriate support for this.professional advancement. open work environment. Peers facilitate the strength through their undying support and 19 . which ensures that every employee is able to exercise this right without any fear. Pioneering the concept in India. The Women Empowerment Cell examines and addresses the issues and concerns of female employees and ensures that they do not miss out on any growth opportunity. There is an established system of joint working and collective bargaining. The Women Empowerment Cell examines and addresses the issues and concerns of female employees and ensures that they do not miss out on any growth opportunity. a system of Joint Consultation has been in place in Tata Steel for more than 50 years. teamwork. Tata Steel encourages female employees to advance their career with initiatives dedicated towards personal development and professional advancement. which ensures that every employee is able to exercise this right without any fear. Freedom of association and collective bargaining Mittal Steel respects the employees’ right to exercise freedom of association and collective bargaining and provides appropriate support for this. There is an established system of joint working and collective bargaining. a system of Joint Consultation has been in place in Tata Steel for more than 50 years.
encouragement. Manager on-line etc. Capture their pulse through employee surveys. Through this open book process you can gradually create a culture of participative management and ignite the creative endeavour of your work force.. are the tools available today to the management to practice this style. thus aligning them to your business objectives. Employee self service portal. company policies. sales. Healthy and Happy Workplace Creating a safe. BHEL is the place where there is an occasion to celebrate every single day. healthy and happy workplace will ensure that your employees feel homely and stay with your organization for a very long time. management objectives. Employees are treated like family members and it is made sure that support is extended to all those who require it Recommendations Safe. new clients. It helps in building trust & motivates employees. Performance linked Bonuses Paying out bonuses or compensation plan can 20 having any kind of variable be both an incentive and . It involves making people an interested party to your strategic decisions. Be as open as you can. ensures that the employees are as enthusiastic about the business as the management. Open Book Management Style Sharing information about contracts. employee personal data etc.
especially if you are in a leadership role (at any level). 360 Degree Performance Management Feedback System This system.disillusionment. Additional criteria could be the team's success and the individual's performance. has been increasingly embraced as the best of all available methods for collecting performance feedback. Such systems also help in identifying leaders for higher level positions in the organization. For higher objectivity. now the opinions of all matter. Gone are the days of working hard to impress only one person. Senior managers could use this feedback for self development. Self rating as a part of evaluation process empowers employees. Fair Evaluation System for Employees Develop an evaluation system that clearly links individual performance to corporate business goals and priorities. Relative ratings of all subordinates reporting to the same manager are another tool for fairness of 21 . Each employee should have well defined reporting relationships. based on how it is administered and communicated. Cross . besides the immediate boss. each employee should be screened by the next higher level (often called a Reviewer). Evaluation becomes fairer if it is based on the records of periodic counselling &achievements of the employee.functional feedback. Bonus must be designed in such a way that people understand that there is no payout unless the company hits a certain level of profitability. unless it is a statutory obligation. which solicits feedback from seniors (including the boss). Every person in the team is responsible for giving relevant. Never pay out bonus without measuring performance. peers and subordinates. positive and constructive feedback. if obtained by the immediate boss from another manager (for whom this employee's work is also important). tracked over the year. will add to the fairness of the system.
Employees are the biggest source of ideas. Innovative ideas (implemented at the work place) are good to be posted on these knowledge sharing platforms. Open house discussions and feedback mechanism Ideas rule the world. suggestion boxes and ideas capture tools such as Critical Incidents diaries are the building blocks that can help the Managers to identify & develop talent. Open house discussions. employee-management meets. Great organizations recognize. Normalization of dimension of improving fairness evaluation is yet another Knowledge Sharing Adopt a systematic approach to ensure that knowledge management supports strategy. nurture and execute great ideas. you can surely avoid disgruntlements. display boards etc. It will encourage others to put in their best. Highlight performers Create profiles of top performers and make these visible though company intranet. The only thing that can stop great ideas flooding your organization is the lack of an appropriate mechanism to capture ideas. 22 . However. thereby creating competitive environment within the company. Store knowledge in databases to provide greater access to information posted either by the company or the employees on the knowledge portals of the company. what to store & how to maintain acknowledge base requires deep thinking to avoid clutter. When an employee returns after attending any competencies or skills development program. sharing essential knowledge with others could be made mandatory. If a systems approach is followed to shortlist high performers.evaluation.
you need to couple it with ceremonies where recognition is broadcast. Delight Employees with the Unexpected The last but not least way is to occasionally delight your employees with unexpected things that may come in the form of a reward. a gift or a well-done certificate.Reward Ceremonies Merely recognizing talent does not work. Reward not only the top performers but also a few others who are in need of motivation to exhibit their potential TATA STEEL 23 . Looking at the Dollar Check is often less significant than listening to the thunderous applause by colleagues in a public forum.
Steel City' campaign). the 225-acre (0.In 1919 Lord Chelmsford named the city Jamshedpur in honour of its founder. 24 . 'Tatanagar' after the name of its railway station Tatanagar Railway Station or simply 'Tata' in deference to the significant presence of Tata companies in the city and its adjoining areas. attracting people from all parts of the nation.Clean City . The city has several nicknames including 'Steel City' (which was referenced during TATA Steel's 'Green City . Tata had written to his son Dorabji Tata about his vision of a great city in the area. the Tata wanted to build a steel plant in India. J.91 km2) Jubilee Park is decorated with brilliant light work for about a week. whose birthday is celebrated on 3 March as Founder's Day. At the turn of the twentieth century. On Founders Day. Jamshedji Nausherwanji Tata. N.
every other of a quick growing variety. The prospectors. He envisioned far more than a mere row of workers hutments. It seemed to be the ideal choice and the place was selected." What the city looks like today is a testament to his visionary plans. M. Jamshedji's plan for the city was clear. a civil engineering firm run by Lawrence Samuel Durrell. The responsibility for its conservation and 25 . Be sure that there is plenty of space for lawns and gardens.. He insisted upon building all the comforts and conveniences a city could provide.Jamshedji Tata went to Pittsburgh and asked geologist Charles Page Per in to help him find the site to build his dream—India's first steel plant. a brick-making plant. The search for a site rich in the resources needed for the plant. the father of the naturalist Gerald Durrell (who was born here) and the novelist Lawrence Durrell. coal. Jamshedji Tata had said . As a result. One day. near the confluence of the Subarnarekha and Kharkai rivers. Early development work was undertaken by Durrell & Co. limestone and water began in April 1904 in today's Madhya Pradesh. an office building. reserve large areas for football. almost by accident they came across a village called Sakchi. namely iron. Jamshedpur is the only city in India without a municipality. a hospital and over 400 workers' houses. many areas in the city are well planned and there are great public leisure places such as the Jubilee Park. earmark areas for Hindu temples. Commissioned by the Tata family in 1920. C. While building this beautiful city. Mohammedan mosques and Christian churches. hockey and parks. took nearly three years in a painstaking search across vast stretches of inhospitable terrain to find a suitable location. Durrell was responsible for building a tinplate mill. on the densely forested stretches of the Choate Nagpur plateau. Weld. Dorab Tata and Shapurji Saklatvala. "Be sure to lay wide streets planted with shady trees..
a similar proposal was once again put up by lobbying politicians.8°N 86. very likely a unique situation in the world.and the quality services continue. the local populace rose in protest and defeated the government's proposal.03% of the total area of Jharkhand. Climate Jamshedpur has a temperate climate. It has an average elevation of 135 metres (442 ft). As of 2001 India census.23 km square. Jamshedpur gets heavy rainfall from July to September and receives about 1200 mm of rainfall annually. Total geographical area of Jamshedpur is 149. A large majority of this sided with the government and set up protest meetings outside the East-Singh hum Deputy Commissioner's office. In fact.maintenance is entirely assumed by Tata Steel. Geography Jamshedpur is located at 22°48′N 86°11′E / 22. The target audience was the working class. the best time to pay a visit to the city is between October and April. the objective was never achieved and Jamshedpur remains without a municipality till date. On the other hand the minimum temperature during winters is 8°C. Summers start in midMarch and can be extremely hot in May and June. During these months. Legend has it that in the late 1980s when the state government proposed a law to end the Tata’s' administration of Jamshedpur and bring the city under a municipality. The temperature variation during summer is from 35º – 42°C although the city has witnessed temperatures higher than this in recent years. and its terrain is quite uneven. Jamshedpur occupies about 2.18. The climate of Jamshedpur is marked by south-west monsoon. In 2005. 86.134. However.8.788 and ranks 28th among the 35 millionplus cities in India according to the census 2001.[ Jamshedpur had a population of 1. the city even receives migratory birds.18°E / 22. 26 . Jamshedpur is located in a hilly region.
Tata Steel. Id-uz-Zuha and Chhath. coal. Tamil Nadu and Kerala. and it is situated almost at the center of the city. Punjabis. Oriyas. There is a small but significant number of South Indians as well.5%. Christmas. Apart from the native tribal population the other ethno-religious groups are Bengalis. truck manufacturing. cement and other small and medium scale industries revolving around these products. The areas surrounding Jamshedpur are rich in minerals. including iron ore. The conversational language is Hindi. industrial city. Plans have been made for the expansion of Tata Steel's existing plant at Jamshedpur from 7 million tonnes per annum to 10 million tonnes per annum. manganese bauxite and lime.Jamshedpur. Marwaris and Muslims . However tribal languages like Santali and Ho are also spoken in some parts of the city. Jamshedpur has an average literacy rate of 82%. is commonly called "Tata Nagar" as a result of the company's significant presence. 11% of the population is under 6 years of age. Durga Puja. Gujaratis. as home to the first private Iron and Steel company of India(sixth largest in the world). Tata Steel is the largest iron and steel producing plant in India. Id-ul-Fitr. In Jamshedpur. It is a modern. the main industries being iron and steel. Major festivals celebrated include Makar Sakranti. 27 . higher than the national average of 59. Biharis. tinplate production. It would then be the first plant in the world to have 10 million tonne capacity in a single campus. Deepavali. as well as the oldest. The largest factory is that of Tata Steel (the erstwhile Tata Iron and Steel Company or TISCO). Holi. The population is cosmopolitan in nature owing to migration of people from all over the country to work in the numerous industries present in the city. principally from Andhra Pradesh.Males constitute 53% of the population and females 47%.
Along with the smokestacks of Tata Power. are producers of liquefied oxygen. nitrogen and other gases. are located in Jamshedpur. Tata Tinplate (the erstwhile Tinplate Co. located near Tata Motors. Agrico. it can be conspicuously seen from the railway tracks while coming to Jamshedpur by rail. L&T. Several renowned industries. after its takeover by Tata Steel. Usha Martin located in adityapur is a wire rope manufacturing company. which manufactures bulk material handling and processing machines and other engineering goods. a coal fired captive power station that supplies a great deal of the city's electricity. ISWP was reopened after more than five years by Tata Steel after surmounting all legal impediments and BFIR-related hurdles. Tata Motors was previously called The Tata Engineering and Locomotive Company (TELCO). manufactures agricultural implements. a subsidiary of Tata Steel. and has two inland water lakes. is the Indian Steel and Wire products (ISWP). The other major factory in the city is Tata Motors with Telcon.) manufactures tinplate. S&L. earlier Tata Cement. of India Ltd. Lafarge Cement. later on taken over by Tata. as railway locomotives were once manufactured here. Praxair and British Oxygen Company (BOC). Danielle. such as TRF Limited (Tata Robins Fraser). The presence of other companies like ABB. is located near Tata Motors. and Italiam Pianti is a privilege for the city people. 2004. SMS. ISWP resumed production in its wire mill on January 2. and has commenced its rod mill operations. TCS. Tata Yodogawa Ltd or Tayo manufactures rolls and dies for rolling mills. Most of the Small Medium Enterprises (SMEs) are located in the 'Adityapur Industrial Estate' which prior to NOIDA was Asia's largest Industrial hub. It was originally a British company built in Golmuri. There are a number of mobile operators in Jamshedpur with the number substantially increased in recent times with the entry of new players 28 .Tata Steel plant in Jamshedpur The steel plant is large enough and still covers around a fourth of the land area of Jamshedpur. they both have plants adjacent to the steel mill. Another factory. which manufactures heavy vehicles and construction/earth moving equipment.
as were 24 out of the top 30 in terms of total capital employee. 29 . the government was clearly in control of what had come to be called the commanding heights of economy. The value of Dorabji’s Expansion Programme came to be appreciated only during the phase when world was reeling under the pressure of the Great Depression. when it was still called Tata Iron and Steel Company. By the Second World War. Tata’s’ production capacities had expanded enough to make their prices lower than those of steel produced in England raising them to an authoritarian position. In this sense it could be said that Nehru’s goals when he had began the planning process had been achieved. These countries had achieved consistent high growth by opening up their markets and by abandoning policies of import substitution.Major Happening: Political: In the 1920s and 1930s. eight of the largest firms in India were in the public sector. and over the years. This rate was in sharp contrast to what was happening in the Asian economies and in Southeast Asia. More than 45% of output in organized industry came from the public sector as well as bank and other long-lending institution. In 1981-82. Work conditions and the right to organize were important rallying issues. TISCO'slargely tribal workers fought pitched battles with the European or Paris management. The Tata’s survived the depression and supplied nearly ¾ of the country’s steel requirements. often by violent means. the company developed a reputation for union-busting. But this success has to be seen in the context of the fact that industrial growth rates had lagged at about 4% per annum between 1964-65 and 1975-76. Indira Gandhi in her second stint as prime minister was not willing to inaugurate a new industrial policy that departed from the socialist pattern put in place by her father. By the 1980s.
756.60 94 26.843. Profit & Loss account of Tata Steel ------------------. The basic elements of the new policy began to emerge against the back ground of the India Special Drawing Rights billion-dollar loan agreement with the International Monetary Fund to cope with the balance of payment deficits.53 22.8 30 .901.Yet she was far too astute not to recognize the signs of crises that were waiting in the wings. 26. ------------------Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 12 mths 12 mths 12 mths 12 mths 12 mths Income Sales Turnover 31.43 19.191. Cr.757.in Rs. She made the gesture that her government supports the expansion and modernization of the private sector.
08 0 173.44 9 2.03 6.1 2.11 18.395.95 929.779.54 8.222.361.02 10.07 289.244.48 2.66 2.45 2 1.19 7 9.170.916.383.905.99 -236.50 11.905.77 1.21 24. 8.Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 2.30 -175.67 05 1.561.3 Mar '07 12 mths 12 mths 12 mths 12 mths 12 mths Operating Profit PBDIT Interest 11.7 1.41 38.95 9 29.900.60 Mar '08 5.686.15 Mar '09 6.81 2. 9.305.2 2.307.304.654.92 805.240.762.02 19.12 82. 24.897. 10.356.310.76 80 2.71 184.108.40.206 1.78 -326.90 1.83 1.08 -343.73 20.606.48 400.027.180.42 1.589.621.96 247.419.848.53 1.435.568.24 1.452.9 8.913.287.618.6 362.7 7.816.32 603.27 25.51 1. 15.558.489.038.18 17.04 3 -198.830.77 1.537.529.84 1.44 9.65 15.4 1.77 1.96 417.241.279.495.55 2.448.029.65 -134.89 6 501.47 17.48 7 2.97 30.50 8.654.25 31 .59 25 12.454.87 251.41 586. 26.8 1.940.40 244.5 1.594.046.461.275.063.176.65 35 1.348.09 75 Mar '11 Mar '10 8.
77 6 156. 8.00 9.31 120.62 819.37 7.5 7.865.00 0.380.19 418.592.84 63.146.00 298.201.316.74 6.773.919.00 7.94 32 .385.00 7.290.14 4 71.74 155.78 5.29 9.773.00 0.804.87 5.00 7.151.01 973.067.912.1 1.00 240.901.6 5.316.85 160.262.64 3 0.00 943.046.33 57.858.067.0 709.43 7.168.543.168.00 331.18 9 0.62 2.215.61 2.30 9 0.024.914.61 0.68 7.50 4 6.222.95 214.1 4.80 9.215.45 1.168.44 109.92 834.1 8.61 0.040.71 122.30 9 2.305.42 1.5 7.96 0.93 202.92 69.892.8 7.47 4.00 7.91 160.083.73 72.31 0.00 8.298.03 5.10 7.205.PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) 10.88 6.114.29 0.872.00 6.58 56.07 22.00 80.31 2.40 0.4 2.70 160.80 9 8.19 1.00 45.00 503.687.28 4.305.48 78 1.
42 Mar '08 23.07 20.096. 37.00 0.00 27.06 0.30 730.479.745.34 2 0.20 2.009.41 Total Debt 26.69 9.41 0.2 22.92 5.650.645.20 0.Balance Sheet of Tata Steel ------------------.741.168. Mar '07 12 mths 12 mths 12 mths 12 mths 12 mths Application Of Funds Gross Block 22.913.472. 3.501.73 3.0 36.758.41 178.41 887.00 29.95 77 Mar '11 Mar '10 14.501.79 0.00 6.00 13.75 63 2.58 14. ------------------Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 12 mths 12 mths 12 mths 12 mths 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans 959.78 0.407.472.301.033.00 887. 25.259.41 959.20 14 76.306.029.32 26.368.322.45 730.3 Total Liabilities 56.00 0.886.18 18.4 0.846.291.00 5.01 16. 62.203.78 Mar '09 45.in Rs.59 16.67 580.021.704.13 6.15 0.281.9 22.43 0.88 4 28.239.4 33 .203.00 48.60 3.097. Cr.946.66 23.444.67 147.300.11 580.520.00 5.52 21.05 23.307.979.00 47.057.
0 6.04 38.44 10 6.88 16. 44.814.162.407.00 6. Depreciation 11.745.75 428.041.188.062.303.322.78 28.48 465.19 11.27 7 0.613.223. Contingent Liabilities 12.012.95 77 23.84 25.61 1.95 7.411.003.55 4.6 Less: Accum.34 4 3.54 3.250.425.2 202.63 446.03 512.196.00 0.34 0.00 8.59 46.497.103.02 2 11.582.61 4 12.45 4.842.256.741.884.805.48 7.46 8.24 1.42 6.279.580.367.383.53 76.02 11.98 3.699.00 6.480.127.6220.127.116.115.185.487.899.12 4.58 4.9 0.349.07 56.077.76 434.025.44 6. 12.08 7.422. 62.55 4 3.392.52 9.184.68 42.46 34.547.00 10.582.733.11 4.1 2.486.68 13.47 8.30 9.78 2.671.564.406.37 Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA.0 8.604.969.0 12.84 0.143. 1.332.29 105.19 2.95 8.931.3 13.56 155.00 3.93 34 .543.994.930.76 3.965.628.1 2.98 631.98 463.1 10.591.66 0.678.337.76 2.83 500.2 13.913.55 9.70 Net Current Assets Miscellaneous Expenses Total Assets -308.67 94 3.47 635.371.84 14.00 0.78 3. Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions 10.440.934.51 4.843.00 3.38 3.26 2.03 5.25 35 0.894.979.63 6 11.11 45.953.98 543.78 8.
• provides unique platform for growth and value creation. • The combination is expected to offer unparalleled scale of production coupled with strong global presence. 35 .78 240.94 331.31 Conclusion From the above project we conclude that: • The merger of Mittal Steel and Arcelor is bound to bring a steel change in the consolidation of steel industry.Book Value (Rs) 503.68 298.19 418.
com www.Bibliography www.scribd. 2.co 1.wikipedia. 36 .
Limitation • Time constraint • Information availability • Cost constraints 37 .
Data collection and Editing Pranay-Financial data collection Subramaniam-Financial data collection 38 .Contribution Murari.Data collection and Editing Apoorva.