integrated - tata steel case

7/25/2019 Integrated - Tata Steel Case

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Tata Steel : A

Detailed Analysis



HR policies at TATA Steel

• Manpower Planning: Number of recruits required Vs availability of talentSurplus of Deficiencies in certain ranks or grades

• Tata Steel is an equal opportunity employer and does not discriminate on te basis of

race! caste! religion! colour! ancestry !marital status! se"! age or nationality#

• Tata Steel encourages female employees to advance teir career wit initiatives

dedicated towards personal development and professional advancement# Te $omen

%mpowerment &ell e"amines and addresses te issues and concerns of female

employees and ensures tat tey do not miss out on any growt opportunity#

• &aring! sow respect! compassion and umanity for colleagues

• 'otational assignments and cross functional mobility allow te employees to grow



Performance Appraisal

• Performance appraisal (carried out

once a year# %mployees are ranked as

Very good! average! average to medium

and below average#

• )mplemented during financial year

*pril to Marc



Culture at TATA Steel and HR

issues• TATAs are known to be compassionate and sociallyresponsible employers. Hence , tey a!epractised a policy of no retrencment till now. "ut

tis policy as started actin# counterproducti!e asemployees a!e o$ lately de!eloped a laidbackattitude.

• Contrary to its culture, TATAs ad to layo$ someemployees from its %& plant owin# to i# #reenta'es on emissions, a stron# pound, slowin#demand and ceap Cinese competition.

• (RS o$ered owin# to low demand ser!ices



)Structure

Tata Steel Ltd

Tata SteelIndia

Tata Steel Europe Tata SteelSingapore

Tata SteelThailand

*amsedpurPlant +-

TPA/

&alin#ana#arPlant +0 1 0

TPA/Raw aterial

Di!ision

2ron 3reines

Coal ines

&ondbond+3rissa/

4oamundi+*arkand/

*oda +3rissa/

*aria+*arkand/

5est"okaro

+*arkand/



(ision , ission 6 (alues

To be the global steel industry benchmark forvalue creation and corporate citizenship

Vision

Mission

Sustainable Growth , Differential value creation , Enhanced

employees’ competencies , continuous improvement of

business processes , being responsible corporate citizen

ValuesIntegrity , nderstanding , E!cellence , nity ,

"esponsibility



• Steel 2ndustry in 2ndia

2ndustry 7 Snapsot

• Steel Sector in India contributes nearly #$ of the country’s GD% and employs over

&'',''' people

• Market Size ( Steel production capacity ( )'*+ illion -onnes .-/ in #'01(0+

• E!pected to become second 2argest producer of crude steel in ne!t 0' years 3

capacity increase ( 4'' - by #'#+

Reference : ttp:88www.ibef.or#8industry8steel.asp'



Steel 2ndustry : a9or Players in te arket

• Tata Steel• *indal Steel 6 Power

• SA2

Name Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Assets

JS Steel )&'*5+ #4,##4*1+ 1&,'65*4# #,0&&*16 +0,16+*64

Tata Steel !"#.$% !!&$''.! #&$%.** +&#"'.! '!&$#.#

SA,L 11*1+ 06,4&'*06 1+,50'*56 #,')#*&6 50,5#+*+'

Source : ttp:88www.moneycontrol.com8competition8tatasteel8comparison8T2S;T2S

http://www.moneycontrol.com/india/stockpricequote/steellarge/jswsteel/JSW01

http://www.moneycontrol.com/india/stockpricequote/steellarge/tatasteel/TIS

http://www.moneycontrol.com/india/stockpricequote/steellarge/steelauthorityindia/SAI

http://www.moneycontrol.com/india/stockpricequote/steellarge/steelauthorityindia/SAI

http://www.moneycontrol.com/india/stockpricequote/steellarge/tatasteel/TIS

http://www.moneycontrol.com/india/stockpricequote/steellarge/jswsteel/JSW01



Steel 2ndustry : Porter<s =i!e=orces

• Barriers to Entry Hi# capital costs, tecnolo#y, economies of scale,#o!ernment policy

• Bargaining po!er of suppliers ow for fully inte#rated players woa!e teir own mines And Hi# for raw materials and for non inte#ratedplayers wo a!e to depend on outside suppliers for sourcin# rawmaterials.

• Bargaining po!er of customers Hi#, presence of a lar#e number of



Tata Steel 2ndia : S53T Analysis



Tata Steel : Product Strate#y 6 CoreCompetency

#roduct Strategy • Tar#etin# i#er se#ment of !alue cain trou# portfolio of

products 7 Long #roducts +"ars, 5ires/, $lat #roducts +HotRolled, Cold Rolled/ and Tubes.

• #roduct di%erentiation strategy 7 !alue added ser!ices toits 2ndustrial customers trou# its enriced Customer

Relationsip ana#ement +CR/ pro#ram

"ore "ompetencies• &perational E'ciency ( trou# process

impro!ements in ) 3perations, arketin# 6 aintenanceacti!ities

• E'cient Implementations

• E%ective #lanning and "o)ordination



Tata Steel : Timelines

?-@

Tata Steelstablised

?B

2ndustrialicenseobtained

--@

5ins bid for

Corus

--

AcEuisition of

4atSteel forFBG mil

--

3% Si#ned for&alin#ana#ar

Pro9ect

-0

Tata Steelurope reportsrecord I"P .

bn loss

-

Closure of %&

Plants

Delay in startin# of Plant , ocal2ssues

=all in Ilobal Steel Demand



'pansion Plan : 5y&alin#ana#ar J

Strate#ic 3b9ecti!es for 'pansion in -- :• Hi#ly ambitious lar#est e'pansion outside *amsedpur

• *ddress the demands of the future 7 marked #rowt in automobilesector 6 reinforce its Tata<s lon#7term supply commitment to te fast#rowin# auto market

• +iant strides to!ards commissioning ( 2nte#rated Steel plant witcapti!e power #eneration, raw material andlin# facilities, railway lines,connecti!ity wit port, etc.

• *chieving gro!th !ith sustainability ) Desi#nin# of te plant donewit an empasis on recyclin# wasteHowever the demand of steel in the global market has gone down since

2004 …

Issues : Slowdown of demand of Steel & local issues

integrated - tata steel case

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