21245884-Tata-Steel

7/27/2019 21245884-Tata-Steel

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Strategy

Tata Steel

•

Jyoti Anand (05) Jitender Kumar Jain(19)

Rohit Kumar(25)

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Part A (Industry Analysis)

• Sie(!orld" India)

• #ro$th Rate(!orld" India)

•

%a&or 'layers in the !orld• %a&or Players in India

• our Strategi #rou'* + ma&or 'layer

in your grou'•

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Industry

• Key ,onomi -eatures

• Industry dri.ing /ores

• KS-S- /or the Industry

• Industry attrati.eness

• Porters 5 /ores om'etiti.e model

• 3alue 4et

• Industry struture

• o$ to om'ete*o'tions

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Part* 6(om'any StrategiAnalysis)

• Along $ith one om'etitor(Strategi#rou')

• Reati.e Relati.e S!7T

• Resoures and a'a8ilities• ore om'etenies

• Ati.ity Systems 3ie$

• o$ sustaina8le om'etiti.ead.antage is 8uilt u'

• ast 5 years /inanials and :ey data

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Part

• Strategi hallenges /aing theom'any today and ne;t 5 years

• Strategi 7'tions and Pros and onso/ eah

• our strategi reommendations andyour rationale thereo/

•

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Industry Analysis

• Size

– Total rude steel 'rodution /or the <<ountries re'orting to the IISI in

January 2009 $as estimated to 8e=5>= million tonnes" a dro' o/ 2?@on January 200=>(soure*$$$>steelonthenet>om)

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Steel Industry

• Aounting /or <@ o/ #4P• Total Prodution in India o/ /inished

ar8on steel –

1991*92 * 1?>++ million tonnes – 2001*02 * +0>11 million tonnes

• emand /or steel is ad.ersely a//eted8y a slo$do$n in real estate and auto

setors sine Se'tem8er 200=>(Soure B %I,)• o$ demand" hea' im'orts and

desto:ing ould 'ut 'ressure on'ries o/ /lat steel 'roduts in %arhCuarter>

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Key 'layers in the !orld

Name Production ( )ArcelorMittal Global .116 4 Mton

( )Nippon Steel Japan .35 7 Mton

( )JFE Japan .34 0 Mton

( )POSO Sout! "orea .31 1 Mton

( )S!an#!ai $ao%teel Group orporation !ina .&' 6 Mton ( / )(ata Steel )ndia Global .&6 6 Mton

- ( )*iaoNin# An $en )ron and Steel Group !ina .&3 6 Mton

( )S!a#an# Group !ina .&& + Mton

& ( ),e$ei (an#%!an )ron Steel Group !ina .&& ' Mton

( )-nited State% Steel orporation -nited State%

.&1 5 Mton

( ) .u!an )ron and Steel !ina .&0 & Mton

( )Nucor orporation -nited State% .&0 0 Mton

( )Gerdau $ra/il .1' 6 Mton

( )Gruppo ia )tal2 .17 + Mton

( )Seer%tal u%%ia .17 3 Mton

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Key Players in India

1> Steel Authority o/ India td(SAI)2> Rashtriya Is'at 4igam td(RI4)

+> Tata Steel ltd(TS)?> JS! Steel td5> ,ssar Steel td

<> Is'at Industries tdD> Jindal Steel E Po$er td

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T$o Routes to Steel %a:ing

1>lassial route or 'rimary route *6ased on 8last /urnae (6-) and8asi o;ygen /urnae (67-)

2>%odern route or seondary route *6ased on eletri ar /urnae(,A-)" using steel sra' or s'onge

iron i>e> iret Redued Iron (RI)as 8asi ra$ materials>

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• Ten main rolled steel 'roduts ot Rolled oil ot Rolled Plate old Rolled Sheet oated Sheet !ire Rod Setions and 6eams Re8ar %erhant 6ar

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Tata Steel B -ats and-igures

• ,m'loyee Strength F +5=D0

• #olden Peao: A$ard 2009 /or its SRati.ities

• ,arned the distintion o/ 8eing thelo$est ost steel 'roduer in the$orld (soure B %I,)

• ,;'anding 'rodution a'aity 8y 50@to a''ro; D>? mn tonnes 8y - 2011(soure B %I,)

•

ACuisition o/ orus" 2nd

largest steelma:er in ,uro e>

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Tata Steel

• Tata Steel is engaged in mining"'rodution and distri8ution o/ steeland steel 'roduts in se.eral

ountries aross the $orld>• The om'anys o'erations are

segmented on the 8asis o/ its

holding and su8sidiary om'anieso'erations inludingG Tata Steel"orus #rou'" 4atSteel" Tata Steel

Thailand and Tata %etali:s imited>

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Produts o/ Steel i.ision

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Tata Steel !hos !ho

• hairman B Ratan Tata

• % * 6 %uthuraman

•

,7 * % 4erur:ar• -7 * Koushi: hatter&ee

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Tata Steel 'resene

• 4ational

– 4ational

– Jhar:hand

– hhattisgarh – 7rissa *

Kalinganagar"harma Port

– Tamil 4adu

–

• International

– 3ietnam

– 7man

– South A/ria – Australia

– %oam8iCue

– I.ory oast

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Key Suess -ators

• Im'ro.ed ost strutures

• #ood To' %anagement

•

Tehnologial e;'ertise

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To' om'etitors /or TataSteel

• Arelor%ittal

• ,ssar #rou'

•

4>3>aido Steel o>" td>• Steel Authority o/ India td>

• Jindal 3i&aynagar Steel td>

•

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hallenges

• Tata Steel /aed many hallenges inres'et o/ Cuality" glo8al ostom'etiti.eness" a'aity

e;'ansion and moderniation"o.ersta//ing" hange managementand trans/ormation into ustomer*

dri.en ulture" and shi/t in /ous/rom steel ommodity 8usiness to Tata Steel 8rand 'roduts

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Res'onses to hallenges

• Tata Steel res'onded 'roati.ely tothese hallenges 8y $ay o/ 'roessinno.ation" ontinuous

im'ro.ement in 8usiness'roesses" em'loyee*/riendly Rmanagement 'raties" reating

and s'reading ne$ 'er/ormane*dri.en ulture" and reating .alue/or ustomers and shareholders>

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om'etiti.e andsa'e

• emand omes largely /rom themanu/aturers o/ dura8le goods li:e motor.ehiles" mahinery" ontainers" andonstrution steel> The 'ro/ita8ility o/

indi.idual om'anies de'ends largely onefficient operations" 8eause most'roduts are ommodities sold 8ased on'rie> 6ig om'anies ha.e largeeconomies of scale in 'rodution>

Aordingly" most 'roduers o/ seondary'roduts 8uy ra$ metal /rom the large'roduers> Small om'anies an om'ete8y o'erating e//iient loal mini*mills or'roduing s'eialty 'roduts> The industry

is highly automatedG a.erage annualre.enue 'er $or:er is lose to H+00"000>

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Strategy o/ Tata Steel in-uture

• ,m'hasis on osts

• ,m'hasis on o'erational e//iieny

•

,nsuring hea'er resoures• ,nhaning re.enue through 8etter

'remium in 'roduts

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Strategy /or /uture

• ,m'hasis on + as'ets B 6randing"'rodut mi;" osts (6 %uthuramanin an inter.ie$)

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3alue 4et

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Re/erenes

1>$$$>tatasteel>om (Tata Steel)

2>$$$>steel>ni >in (%inistry o/ Steel)

+>htt'G&'indiansteel>ni>inteh+0se'>as'

?>$$$>eonomitimes>indiatimes>om

5>$$$>$orldsteel>org

<>%I, B %onthly re.ie$ o/ Indian,onomy

D>$$$>$orldsteel>org

=>htt'G$$$>steelonthenet>om'roduti

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9>htt'G$$$>researhandmar:ets>omre'ortin/o>as're'ortidF<905D9

10>htt'G$$$>ieindia>org'u8lishmm100+ot0+mm2>'d/

21245884-Tata-Steel

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