By Abhilasha Manda Bajrangi Lal Gupta Sonali Hansda Saurabh Bhargava

Indian Scenario
Indias economic growth is contingent upon the growth of the Indian steel industry.

Consumption of steel is taken to be an indicator of economic development.

India has emerged as the fourth largest steel producing nation in the world, as per the recent figures release by World Steel Association in April 2011. In 2010, India was the 5th largest producer, after China, Japan, USA and Russia had recorded a growth of 11.3% in steel production as compared to 2009.

Overall domestic crude steel production grew at a compounded annual growth rate of 8.6% during 2005-06 to 2011-12.
The Indian steel industry accounted for around 5% of the worlds total production in 2010.

EXPANSION PLANS Total crude steel production in India for 2011-12 was around 72% million tonnes and its expected that the crude steel production in capacity in the country will increase to nearly 110 million tonnes by 2012-13. Further, if the proposed expansion plans are implemented as per schedule, India may become the second largest crude steel producer in the world by 2015-16.

Indian Steel Industry

Value Chain of the Steel Industry

Stretch 3

Stretch 1

Stretch 2

Stretch 4

Strategic positions of Players In Value chain

TATA Steel SAIL Value Added Steel
Galvanized Steel CR(Auto grade) Galume

Iron Ore

Pig Iron

Billets HR Coils

CR Coils
Others

Color Coated Steel H&T and HTSS

Precision Pipes

ESSAR Steel Ispat

Uttam Galva Bhushan Steel

Application of End Products and customers

VALUE CHAIN DIFFERENCES:

Value Chain Processes SAIL
In-house production

Tata Steel
In-house Production

JSW
From third party
Technology follower

Bhushan Steel
In-house Production
Research facilities for limited products

Procurement
Technology and development Operations

strong in-house R&D and captive engineering shops

R&D for product and process development and innovation along with 5 global R&D facilities A balanced global presence in over 50 markets and manufacturing operations (incl. downstream) in 263 international locations Customization level is very high from automotive to construction sector etc.

National and Global Presence with Integrated and special steel plants Regulated by the Government

National presence and exports to 70 countries. Supplies directly to OEMs Marketing and Distribution Centres in most of the Indian cities

Strong Regional Presence close to its customer base

Marketing and Sales

sells both to Government and private entities. SAIL has a country wide network of dealers; It is trying to get close to individual consumer by APNA SAIL SHOP

Distribution centers across major Indian Cities

Vision Statements
Company Name Vision Statement
Tata Steel Our vision is to be the global steel industry benchmark for value creation and corporate citizenship.
To be a respected world class corporation and the leader in Indian steel business in quality, productivity, profitability and customer satisfaction Strive to develop Synergy of Products, Processes & Systems. Global recognition for Quality and Efficiency while nurturing Nature and Society.

Steel Authority India Ltd

Bhooshan Steel Ltd

JSW Steel Ltd

Business Models of some Major Players

Business model for JSW Steel

JSW steel follows the Disintegrate process and Integrate approach to achieve a efficient business model.
VMPL/ND MC Tie up for Iron Ore Supply SWPL 5MPTA PORT AT GOA

JSW Steel Ltd Integrated Operations

JPOCL/B OC Tie up for Oxygen

JEL Tie Up for Power

Tata Steel

Strategy of Tata Steel

Steel Authority of India Ltd

Strengths

Technology Business Linkage of players

Business Strategy Technology Strategy
Create Change the rules Support Existing Fundamentally of Rivalry Business New business C O M M I T M E N T S

R E S O U R C E

Appropriation

Technical Capabilities

Deployment In products

Product Platforms

Deployment in Value chains

SAIL Bhooshan Steel JSW

Process Platforms
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Tata Steel

Cost Comparisons of Treated Steel Products

HRC is Hot Rolled Coils

Thank you

Appendix

Mission Statement
Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives to strengthen Indias industrial base through the effective utilization of staff 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 the essential ingredients of a strong and stable enterprise, profitability provides the main spark for economic activity.

Overall, the Company seeks to scale the heights of excellence in all that it does in an atmosphere free from fear, and thereby reaffirms its faith in democratic values.

To achieve reliability, performance & production of our Products, at a Price that exceeds the aspirations of the Customers. At the same time developing Systems & Employees to achieve it.

Supporting India's growth in Steel Domain with speed & innovation .