tata steel - leadership with trust
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Leadership With Trust
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VisionWe aspire to be the global steel
industry benchmark for
Value Creation and Corporate
Citizenship
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Mission To scale the heights of excellence
in all that it does
To Function in an atmosphere
free from fear
To have full faith in democraticvalues.
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Type Public (BSE: 500470)
Founded 1907
HeadquartersMumbai,
Maharashtra, India
Key people
Ratan Tata
(Chairman)B Muthuraman
(Managing Director)
Industry Steel
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Products
Hot and cold rolled
coils and sheets
Wire and rods
Construction bars
Pipes
Structurals and
forging quality steel
Revenue US$32.77 billion
(2009)
Total assets $31.16 billion
(2009)Employees 86,548 (2009)
Parent Tata Group
Website TataSteel.com
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INDIAN STEELINDIAN STEEL
INDUSTRYINDUSTRY
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OVERVIEW
Fifth largest producer of steel in the world
and second largest producer of crude steel
Steel production reached 28.49 million tonne(MT) in April-September 2009.
About 50% of the steel produced in India is
exported.
India accounts for over 7% of the total steel
produced globally
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OVERVIEW
India accounts for around 5 per cent of
the global steel consumption
Huge Iron Ore reserves 23 bn. tonnesIndian Steel Producers are increasingly
looking for overseas acquisitions in
steel as well as raw materials.
Positive overall growth in the
production of crude steel
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killed Human
Resources
Abundant Iron Ore
Government Policy
Huge Potential for Demand
High GDP growth rate of 7%
1 billion population
Low per capita steel consumption of 33kg (World av. 181 kg)
Reserves 23 billion tonnes
Stable currency
Easing of regulations
Strong Banking & judicial system
Growth
factors
for India
Encouraging trade relations with
ASEAN and other countries
Infrastructure building
Exploring new Energy resources
Indian Potential for Steel
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20
25
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1949 1953 1957 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2008
INDIAS CRUDE STEEL PRODUCTION (MT)
HISTORIC TRENDS
* Year indicates FY
Enabled by
Indias
Economicliberalization
process
India gains independence
in 1947
6.6 mT
in 1973
16.2 mT
in 1991
1.25 mT
in 1948
58 mT
in 2008
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-10
-5
0
5
10
15
20
00-01 01-02 02-03 03-04 04-05 05-06
%g
ro
wth
Construction
Manufacturing
Capital Goods
Consumer
Durables
BOOMING STEEL CONSUMING SECTORS
Industrial growth led byManufacturing
Capital and Consumer Goods sectors flag bearers of manufacturing sector growth
Capital Goods
Manufacturing
Construction
Consumer Durables
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OtherMajor Steel Producers
Tisco JSW
Essar Steel
RINL MECON
MOIL
MSTC KIOCL
NMDC
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Top 10 Players
1st; 103.3 mmt; ArcelorMittal
2nd; 37.5 mmt; Nippon Steel
3rd; 35.4 mmt; Baosteel Group
4th; 34.7 mmt; POSCO
5th; 33.3 mmt; Hebei Steel Group
6th; 33.0 mmt; JFE
7th; 27.7 mmt; Wuhan Steel Group 8th; 24.4 mmt; Tata Steel
9th; 23.3 mmt; Jiangsu Shagang Group
10th; 23.2mmt; U.S. Steel
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TATA STEEL LIMITED
Tisco -1907
Country's single largest
Integrated steel plant Technical collaboration with Nippon Steel &
Arcelor
In January 2007 Tata Steel made a successful$12.04 billion offer to buy European steelmaker Corus Group PLC.
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Benefits From Corus
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Portfolio of Products
TSL products, produced by the Companys
Indian operations
NatSteel and Tata Steel Thailand operations,and
Corus products, produced in the United
Kingdom and The Netherlands.
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TSL Products
Finished and semi-finished steel products;
Ferro alloys products; and
Other products and services, including tube
products, bearing products, refractory products,pigments, municipal services and investmentactivities.
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Corus Products
Strip products;
Long products;
Distribution and building systems;
and
Aluminum.
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Finished & Semi-Finished Steel
Products
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Finished & Semi-Finished Steel
Products
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Ferro Alloys Segment Products
Produces chrome ore, pyroxenite andmanganese ore as well as ferro chrome andferro manganese.
Ferro chrome and ferro manganese are usedby the steel industry to create stainless steelproducts.
TSL is the leading manufacturer of ferrochrome in India and the leading manufacturerof chrome ore internationally.
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Other Services Segment
Production of tubes, bearings and the provision ofservices. TSL is the largest manufacturer of steel tubesin India.
TSL produces tube products mainly in the commercialtube and precision tube categories.
Commercial tubes are used primarily for piping water,gas and steam for irrigation and other agricultural usesas well as for industrial purposes and are marketedprimarily to builders, contractors and distributors.
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Other Services Segment
Precision tubes are sold primarily to automotive
and bicycle manufacturers, boiler manufacturers,
the fertilizer industry and to furniture
manufacturers.
TSLs bearings division manufactures ball bearings
and taper roller bearings. Major customers of thebearings division include companies in the
automotive and engineering industries.
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Corus Products
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Corus Products
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Distribution and Building Systems
Corus sells its finished carbon steel products directly toend users and through its own stockholding and servicecenter businesses.
Stockholders purchase steel from high-volumeproducers for subsequent resale, and service centerspurchase steel stocks for further processing prior toselling to customers.
The stockholding and service center section plays amajor role in the distribution of most finishedproducts.
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Aluminum
Corus aluminum division now only reflect retainedaluminum smelting and metal trading operations.
Corus primary aluminum smelters produce rollingingots and billets made from alumina (processedbauxite) using an electrolysis process.
Approximately 75% of this division's 272,000 tonnes
output is dedicated to the downstream operations thatwere sold to Aleris International Inc., with theremainder sold to external customers under tolling ordirect sales contracts.
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Tata Steel LimitedSales & Distribution
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Indian Sales
Tata Steel Limited currentlysells approximately 91% ofits Indian operationsproduction in the Indian
market. In India, Tata Steel Limited
sells the majority of its steelproducts to theconstruction and
infrastructure industries,the automotive industryand the general engineeringindustry.
Tata Steel Limiteds principalproducts sold to the Indianconstruction andinfrastructure industry are
long products.
Tata Steel Limited targetslarge constructioncompanies involved in
infrastructure projects ascustomers
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Indian Distribution andMarketing
Direct supply channels,
21 stockyards,
25 consignment agents,
15 external processing agents and
A network of distributors and retailers operatingthrough 22 sales locations in India.
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Indian Distribution andMarketing
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Exports from India
Excluding intra-company transfers, in the yearended March 31, 2007, TSL exported from Indiaapproximately 403,000 tonnes of steel products,corresponding to 9% of its net sales, with Europeas its most significant export market.
An increased demand in India for steel productsstarting in 2007 led to a comparatively lower level
of exports as a percentage of net sales in the yearended March 31, 2007 (9%) compared to those inthe year ended March 31, 2008 (12%).
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Asia Pacific Sales outside of India
TSL currently has 14 salesoffices in 12 countries inAsia Pacific countriesoutside of India.
The NatSteel and TataSteel Thailandacquisitions have
strengthened TSLs salescapability in the AsiaPacific region.
For example, NatSteelssales distribution networkincludes direct sales toprivate customers and to
wholesalers in the AsiaPacific region.
Tata Steel Thailand sells
its products almostentirely within Thailand.
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COMPETITIVE ADVANTAGE
Harnessing New and BetterSources of RawMaterials
Innovating to Use Blue Dust
Process Innovation in theSinter Plant
New CokeMakingTechnology
Blast FurnaceOptimization
Reducing Energy Costs
Addressing Overstaffing
Modernization ofFacilities
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COMPETITIVE ADVANTAGE
Transformation into a
Customer-driven Culture
Challenge of being
Internationally Competitive
Accountability Issues
Quality and Cost at the
Centre-stage
Creation and Spread of a
New Performance Culture
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Tata Steel: THE QUEST FOR BUSINESS
EXCELLENCE
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STRENGTHSPRODUCTION CAPACITY
STRONG DISRTIBUTION NETWORKIMAGE/BRAND
WEAKNESS
Location
Distribution cost
OPPORTUNITYLARGE UNTAPPEDMARKET
GROWING DEMAND
THREATSCHANGING ECONOMY
SWOT
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InnovativeMarket Place Initiatives:
For Retail Customers: Innovation with Retail Customers suchas Distributors, Retailers, End Customer, Fabricator, SmallerOEs should be done by:
E- Linking the distributors
Retail Value Management
Brand Management
Recommended Consumer Price
Retail Identity Programme
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InnovativeMarket Place Initiatives:
For Institutional Customers: Key Accounts are handled usinginnovations like:
Customer Value Management
Advanced Planning System
Dedicated Service Centers
Tie-up with global majors for high-end products
EVI for the Auto Segment
Long tem Contracting
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TATA STEEL
STRATEGIES
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