Case Study Track: Business Theme: Xplore New Frontiers

(Marketing/Strategy)

Name of the Case: Determining Brand Positioning for new Tata Tiscon Rebar through
EAF route (Green Steel)

Introduction:

Steel making has been traditionally carbon intensive process emitting 2.1 kg of carbon
for every ton of steel produced. The Steel sector is identified as a “hard-to-abate” carbon-
emitting sector. With climate change issues across the globe and the government focus
on reducing carbon foorprint, all major steel players have come forward to take up the
mission of lowering carbon foorprint. The steel industry contributes to 7 percent of the
carbon emissions globally and the Indian steel industry accounts for 12 percent of these
emissions. The production of green steel minimizes the usage of the popular coking coal,
a major contributor of GHG emissions.

In the same lines Tata Steel has taken the lead to be carbon neutral by 2045. We are
targeting to reduce carbon emissions by 25% from 2020 baseline (Scope 1 and Scope 2
emissions) by 2030 while also growing profitably.

Background: .

Tata Tiscon is an industry leader in the TMT bar segment having a market share of 18%,
and garnering a premium of Rs 12000-15000 in the Individual house building segment.
We have an ambitious plan to double our production in the next 3 years. Keeping
sustainability goals in the midst of Tata Tiscon’s growth plans is of paramount
importance today and we must look at green steel more seriously than ever now. Tata
Tiscon’s is setting up its 1st new EAF plant in Ludhiana. The plant will use recycled scrap
and green power to produce TMT bars. Tata Steel is part of Responsible Steel which
gives our consumers the confidence of buying products from a company more
committed towards responsible business practices.

The increased production of green steel will help transform the steel sector’s current
identity as a “hard-to-abate” carbon-emitting sector to a “reduced carbon emitting-
green steel-producing industry.

Production of green steel and adherence to environmental and government norms

entails higher costs as compared to traditional steel making through Blast furnace route
using Iron ore and coking coal.

We must know what the optimum way of positioning Green TMT rebars in the minds of
consumer, given that till now we have been encashing on the fact that Tata Tiscon
differentiates- itself from other secondary rebar players as being primary steel made
from virgin iron ore.
Problem Statement/Challenges Faced:

1. Understanding Customer acceptance and need for Green steel in a market

where consumers continue to prefer secondary steel as its cheaper.
2. Understand how to position Green Steel at a higher premium than current
premium levels of Rs 12000-15000 for Tata Tiscon 550SD
3. Define route to market strategy for Green TMT Rebar and ensuring sales of
entire production of plant i.e. 0.75 Million tonnes per year in and around 400-
500 km of Punjab
4. Understand the scrap recycling business collection and management of scrap
across different states and provide deep analysis.

Critical problems to be solved:

1. What should be the branding strategy for positioning Green TMT Rebar?
2. How can we create a market and extract higher premium for Green TMT rebar
that will be manufactured at Ludhiana?
3. What should be done to create consumer awareness around the product
without disturbing the existing market of Tata Tiscon 550SD being
manufactured through BF route.
4. Where should the product be positioned- as Tata Tiscon or a new brand?