0% found this document useful (0 votes)
155 views63 pages

Summer Project 1

The document provides financial information for three steel companies - Tata Steel, JSW Steel, and SAIL. It includes sales, expenses, profits, balance sheet figures, ratio analysis, and accounting procedures for each company. It also discusses the corporate social responsibility activities and budgets for Tata Steel and JSW Steel, such as eradicating hunger, promoting education, and rural development.

Uploaded by

Shubh soni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
155 views63 pages

Summer Project 1

The document provides financial information for three steel companies - Tata Steel, JSW Steel, and SAIL. It includes sales, expenses, profits, balance sheet figures, ratio analysis, and accounting procedures for each company. It also discusses the corporate social responsibility activities and budgets for Tata Steel and JSW Steel, such as eradicating hunger, promoting education, and rural development.

Uploaded by

Shubh soni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 63

Chapter 1: Industrial Scenario

Chapter 2: Profile of the Companies Selected


Chapter -3 Finance Department
3.1 TRADING AND P& L ACCOUNT
Figures in Rs crores

PARTICULARS TATA STEEL JSW STEEL SAIL


SALES 64,869 70,727 69,110
EXPENSES 43,103 51,509 56,381
OPERATING 21,765 19,218 12,728
PROFIT

OTHER INCOME 637 710 1011


PROFIT BEFORE 17,795 12,916 6879
TAX

NET PROFIT 13,606 8393 3850

3.2 BALANCE SHEET


Figures in Rs crores

PARTICULAR SAIL JSW STEEL TATA STEEL


SHARE CAPITAL 4130 302 1973
RESERVES 39,364 46,675 89,293
BORROWING 19,725 39,551 27,313

OTHER 7450 9664 17,416


LIABILITIES

TOTAL 1,17,338 133232 1,65,035


LIABILITIES
FIXED ASSEST 67,598 51942 68,777
CWIP 1596 28914 10057
INVESTMENT
OTHER ASSEST 4587 3844 205
TOTAL ASSEST 1,17,338 1,33,232 1,65,035
3.3 RATIO ANALYSIS
PARTICULAR TATA STEEL JSW STEEL SAIL
LIQUIDITY
RATIO

CURRENT RATIO 0.81 0.80 0.69


QUICK RATIO 0.52 0.51 0.36
PROFITALBILITY
RATIO
GROSS PROFIT 27.4 21.88 10.45
RATIO
NET PROFIT 20.97 11.86 3.27
RATIO
OPERATING 33.35 27.23 16.54
RATIO
SOLVENCY
RATIO
DEBT EQUITY 0.42 1.24 1.10
RATIO
INTEREST 5.36 4.42 3.44
COVERAGE RATIO

3.4 FINANCIAL STATEMENT ANALYSIS


INCOME STATEMENT COMMON ANALYSIS

PARTICULAR TATA STEEL JSW STEEL SAIL


SALES -11.3% 12.7% 1.20%

TOTAL -11% 8.88% 5.20%


REVENUE

PROFIT 0.0% 30.27% 58.07%


BEFORE TAX

NET PROFIT 4.7% 96.3% 95.6%


3.5 BALANCE SHEET COMMON SIZE ANALYSIS
PARTICULAR TATA STEEL JSW STEEL SAIL
NET WORTH 7 24.3 4.7

CURRENT 1.2 45 8.0


LIABILITIES
LONG TERM 17.1 -6.5 12.2
DEBT
TOTAL 7.2 24.9 7.6
LIABILITIES

CURRENT 1.9 44.7 26.9


ASSEST
FIXED 7.7 17.1 0.8
ASSEST
TOTAL 7.2 24.9 7.6
ASSEST

3.6 ACCOUNTING PROCEDURE


PARTICULAR REVENUE DEPRECIATION FIXED ASSEST
RECOGNITION and tax
TATA STEEL Revenue from sale of Depreciation is Major expenses on
goods is recognised provided on a straight relining of furnace
net of rebates and line basis over the are capitalised. The
discounts on transfer useful lives of assets, written down value
of significant risks which is as stated in of the asset
and rewards of Schedule II of consisting of
ownership to the Companies Act 2013 lining/relining
buyer. Sale of goods or based on technical expenditure
is recognised gross of estimate made by the embedded in the cost
excise duty but net of Company. However, of the furnace is
sales tax and value assets value up to written off in the year
added tax. `25,000 are fully of fresh relining.
depreciated in the year
of acquisition
JSW STEEL Consolidated Deferred tax assets are Intangible assets with
Financial Statements recognized for unused finite useful lives that
have been prepared tax losses to the extent are acquired
in accordance with that it is probable that separately are carried
the accounting taxable profit will be at cost less
principles generally available against accumulated
accepted in India which the losses can amortisation and
including Indian be utilized. accumulated
Accounting Significant impairment losses.
Standards (Ind AS) management Amortisation is
prescribed under the judgement is required recognised on a
Section 133 of the to determine the straight-line basis
Companies Act, 2013 amount of deferred over their estimated
read with Rule 3 of tax assets that can be useful lives. The
the Companies recognised, based estimated useful life
(Indian Accounting upon the likely timing and amortisation
Standards) Rules, and the level of future method are reviewed
2015 (as amended taxable profits at the end of each
from time to time) together with future reporting period,
and presentation tax planning with the effect of any
requirement of strategies. changes in estimate
Division II of being accounted for
Schedule III of the on a prospective
Companies Act basis. Intangible
2013 , (Ind AS assets with indefinite
Compliant Schedule useful lives that are
III),as applicable to acquired separately
Consolidated are carried at cost
financial statements. less accumulated
impairment losses.
SAIL The financial Depreciation on The Company
statements of the tangible assets and reviews the carrying
Company have been investment property is amount of its assets
prepared on accrual provided on straight on each Balance
basis of accounting line method, Sheet date for the
in accordance with considering residual purpose of
the Indian value of 5% of the ascertaining
Accounting cost of the asset, over impairment
Standards (Ind AS) the useful lives of the indicators if any, by
as prescribed under assets, as specified in considering assets of
Section 133 of Schedule II of the entire one Plant as
Companies Act, Companies Act, 2013 Cash Generating Unit
2013, as notified except in case of (CGU). If any such
under the Companies Factory Buildings, indication exists, the
(Indian Accounting Plant and Machinery, assets'''' recoverable
Standards) Rules, Water Supply & amount is estimated,
2015 (as amended), Sewerage and as higher of the Net
and other accounting Railway Lines & Selling Price and the
principles generally Sidings and Value in Use. An
accepted in India. components thereof, impairment loss is
The Company has where useful life is recognized whenever
uniformly applied the determined by the carrying amount
accounting policies technical experts. of an asset exceeds
during the periods its recoverable
presented. These are amount.
the Compamia’s first
Ind AS financial
statements and Ind
AS 101, First-time
Adoption of Indian
Accounting
Standards has been
applied.

CSR AND EXPENSES:


COMPANIES CSR ACTIVITIES BUDGET
TATA STEEL  Eradication Hunger, 192.99 CR
Poverty, Malnutrition.
 Gender, Equality and
Women
Empowerment,
Senior Citizens Care.
 Heritage
conservation,
Promoting Art, Craft
and Culture, Public
Libraries.
 Promoting national
and rural sports,
Paralympic, Olympic
sports.
 Rural Development.
 Contribution to
Central Government
Fund.

JSW STEEL  IMPROVING 156.2 CR


LIVING
CONDITIONS
(ERADICATING
HUNGER,
POVERTY,
MALNUTRITION,E
TC. ...
 PROMOTING
SOCIAL
DEVELOPMENT
(PROMOTING
EDUCATION,
SKILL
DEVELOPMENT,
 ADDRESSING
SOCIAL
INEQUALITIES
( PROMOTING
GENDER
EQUALITY,
WOMEN.

SAIL Eradicating hunger, poverty 38.33CR


and malnutrition, promoting
preventive health care and
sanitation and making
available safe drinking water

3.8 Company A listed or not?


COMPANY TATA STEEL JSW STEEL SAIL

NSE YES YES YES


BSE YES YES YES
SINCE WHEN 02-2-11 N/A 24 -1- 1973
Chapter 4: Marketing Department
4.1 List of Companies Product and Solutions and Services:-
4.1.1 TATA STEEL
PRODUCT/BRAND:
Hot Rolled Cold Rolled
Coated coil Tubes
Rebar Wire Rods

Automotive Steels Galvano

Tata Agrico Tata Astrum

Tata Bearings Ferromag

IBMD Tata Pipes

Tata Precision Tubes Raw Material


Tata Shaktee Tata Steelium

Tata Structura Tata Tiscon

Tata Wiron Tata KOSH

SOLUTION:

Cyan Steel n Style

Tata Pravesh Tata Tiscon Superlinks

Tiscon Footings Tiscon ReadyBuild


Roof Junction Tata Shaktee Ridges

Nest-in

Services:
Some of the key segments that we target in Indian markets are Construction, Automotive,
General Engineering and Industrial Products & Agriculture apart from serving other sectors such
as Packaging, Consumer Goods etc. Developing new solutions in the emerging sectors has
provided a big fillip to expanding the scope of businesses. Branded products and retail solutions
segment is targeted to provide an end-to-end customer service and has expanded its base to
provide unique services to its existing & new customers.

Hot Rolled Products: 


With wide product portfolio coupled with robust supply chain, Tata Steel has been able to
maintain leadership position in Indian Automotive Market steel supply. Apart from supplying
from the start of art hot rolled facilities at Jamshedpur (Hot Strip Mill & Thin Slab Caster), Tata
Steel has also come up with a Hot Strip Mill at Kalinganagar, which has the capability of
producing hot rolled steel up to 1200 Mpa.
This would be a major boost for Indian automotive manufacturers in weight reduction
exercises undertaken to either meet safety and emission norms or light weighting targets.

Cold Rolled Products: 


Tata Steel has been supplying Cold rolled as well as coated products since early 2000 to
the automotive industry. This has helped in localization over years by automotive manufacturers
for outer body panels. With the changing needs of automotive industry, Tata Steel has set up a
Joint Venture with NSSMC (called JCAPCPL) in Jamshedpur which is a continuous annealing
line fully dedicated to automotive industry. This line is currently supplying cold rolled up to 590
Mpa(capability-upto980Mpa).

Coated Products: 
Envisaging the upcoming demand in coated products in India, Tata Steel was the first
domestic mill to set up a Continuous Galvanizing line in Jamshedpur catering to automotive
manufacturers. Tata Steel was the pioneer in developing Chromated-Coated steel for Fuel tank
application for two wheeler Industry and have been supplying over a decade. Tata Steel has
largely helped in localization of outer panels.

R&D Capability: 
Tata Steel specializes in providing customized solutions to automotive manufacturers
through Reverse Engineering of their blanking dies. Our investments in setting up R&D and
Product Application Research labs are helping us provide cost-down-weight-reduction (CDWR)
solutions and advanced technical support to auto customers and solve issues they face in their
press/weld/paint shops. Tata Steel also creates value to automotive manufacturers through Blank
Optimization and Early Vendor Involvement program. Tata Steel also engage in Value
Engineering activities partnering with customers by providing alternate grade solutions and
generating value across the supply chain.

4.1.2 JSW STEEL


List of Product and Services:

Hot Rolled :
 Cold rolling and galvanising
 Drawing and press forming
 Electrical stampings and forming
 Welded tubes and pipes
 Line pipes, structural and general engineering
 High tensile structural applications
 Chequered sheets and plates for structural use
 HSLA grade for automobile and other engineering applications
 LPG cylinders, boiler tubes and pressure vessels
 Medium carbon steel
 Corrosion resistant steel

Cold Rolled :
 Automobile
 White goods
 Cold formed sections
 Drums and barrels
 Furniture

Galvanized:
 Roofing and cladding
 Ducting
 Boxes
 Coolers
 Furniture
 Heat plates
 Solar heating panels
 Electrical and light fittings
 Agricultural equipment
 Sandwich panels
 Automotive

Color Coated Product:


 White goods
 Construction

Electrical Steel:
 Electric motors
 Power generation
 Nuclear power stations
 Domestic appliances
 Transformers and automotive electricals

TMT Bars:
 Construction
 Infrastructure

Wire Rods:
 General engineering
 Automobile
 Cold drawing
 Cold forming
 Spring applications
 Welding
 Wire ropes
 Tools
 Heat treatment
 Bearings
 Office and household equipment

Special Alloy Steel:


 Gears
 Crank shafts and bearings in the automotive sector

JSW Steel has played a pioneering role in the Indian steel industry by launching path-breaking
and innovative products. Over the last two decades, the Company has been at the forefront of the
roofing and wall categories by introducing galvalume and colour coated products. Continuing
this tradition, the Company launched another innovative product in this segment, JSW Everglow.

JSW Everglow is a colour-coated steel product that provides beautiful and innovative roofing
and wall solutions. Super premium and technologically superior, it scores high on aesthetics and
is the first product in the roofing solutions category that offers colour coating on both the sides. It
also comes with a 10-year warranty — another first in India. JSW Everglow offers high value
proposition to customers focused on aesthetics.
4.1.3 SAIL
List of Product and Services:

HR Coils: LPG cylinders, automobile, railway wagon chasis and all


types of high strength needs.

Plates: Pressure vessels, ship building and engineering structures

Chequered Plates: Flooring & staircases in the industrial installations, railway


platforms, etc.

CR Sheets & Coils: Steel furniture, white goods like refrigerators, washing
machines, automobile bodies, railway coach panelling,
drums, barrels, deep drawing and extra deep drawing, etc.

Galvanised Sheets: Roofing, panelling, industrial sheeting, air conditioner


ducting and structural

Electrolytic Tin Plates: Containers for packaging of various products including


edible oils, vegetables and confectionary items.

Silicon Steel sheets & Coils: Small generators, stators for high efficiency
rotating equipment and relays, etc.

Spiral Weld pipes: High pressure transportation of crude oil, natural gas and
slurry transportation, water supply, sewage disposals, grain
silos, civil engineering pilings, etc

.ERW Pipes: High pressure transportation of oil & water, sewage disposal,
tube wells, etc.
Ore Bedding and Blending Plant

RSP’s Ore Bedding & Blending Plant (OBBP) has a base mix preparation system with on-

ground bedding, blending and conveying facilities. The facilities in OBBP include major

installations like wagon unloading (tipplers & track hoppers), iron ore crushing and screening

system, raw material storage yard, rod mills and roll crushers for flux and coke crushing,

proportioning bins and elaborate conveying systems.

Coke Oven

RSP has five old and one new coke oven batteries (COBs) that produce coke as the input for

blast furnaces. The coke ovens are equipped with wagon tipplers, automatic handling and

conveying facilities, coal blending provisions, coke wharfage crushing together with screening

and conveying systems

Sintering Plant

The Sinter plants feed sinter to the blast furnaces. The two old Sinter plants have a combined

capacity of 3.07 MT per annum, while the new Sinter Plant has a capacity of 3.7 MTPA.

Blast furnaces

The five blast furnaces of RSP, with a combined capacity of 4.5 MTPA, produce hot molten

metal for steel production.

SMS-I(Steel Melting Shops)

In early sixties SMS-I was commissioned with LD converters and later on a Secondary Steel
Making unit and a Continuous Casting unit were added to it. Hot Metal from different Blast

Furnaces are transferred to Hot Metal Mixers of SMS-I by locomotives. Using oxygen from

Tonnage Oxygen Plants and Lime & Dolomite from LDBP, hot metal is converted to steel.

Apart from a computerised LD process which has enhanced shop capability, the LA Vacuum

Metallurgy Technique has been also adopted for secondary refining of steel. This facilitates

production of special steels for application in electrical machines, pipe making, tin plate, boilers

and auto chassis members.

SMS-II

The two old and one new Basic Oxygen Furnaces (150 Tonnes capacity each) make steel from

the inputs namely Hot Metal, scrap, Ferro alloys and flux with the help of Oxygen that is blown

into them from the top. The two old and one new Continuous Slab Casters mould the molten

Steel and produce Steel Slabs. The shop is equipped with automation through three levels of

computerised control, LD gas cleaning and recovery, power distribution system, water and

utility services.

Plate Mill

RSP’s old 3.1 meter wide, 4 high reversing mill is equipped with online thickness measurement

facilities. The mill has a production capacity of 299,000 tonnes per annum. The 4.3 metre wide

New Plate Mill has a capacity to a New 4.3 Metre Plate Mill, which is one of the widest in the

country has been set up to cater to the customised plate market is one of the most important

components of this phase of Expansion. The Mill can produce a wide range of plates with close

tolerances to meet stringent international standards and heavy and wide plates for the rising ship
building and boiler sectors.

Hot Strip Mill

The HSM supplies Hot Rolled Coils as input materials to its downstream customers such as

Cold Rolling Mills, Silicon Steel Mill, and Pipe Plants and also to Dividing Line. It also caters to

the requirements of external customers. The facilities of the 1.44 MT per annum mill include,

Two walking beam type reheating furnace (225 TPH), Roughing/sizing stand RoVo with

automation, an Automated coil box, Quick roll change system in Roughing Stand-1 and

finishing mills and Coil marking, sampling and conveying systems.

Cold Rolling Mill

Produces about 678,000 tonne of cold rolled sheets per annum, RSP’s Cold Rolling Mill has a 5-

stand tandem mill and a 4-high 1700-mm reversing mill. The tandem mill is equipped with

automatic gauge control, x-ray gauge, data logging and thyristorisation.

Galvanising Lines

Two continuous hot-dip galvanising lines are equipped with jet-coating facilities. There are 2

multi-roller-corrugating machines as well which produce corrugated sheets.

Silicon Steel Mills

This unit produces steel for the electrical industry through various operations carried out in

sophisticated, continuous/semi-continuous processing lines and a 4-high reduction mill.

Advanced process control and product testing facilities ensure product quality.

Pipe Plants
A highly sophisticated Spiral Welded (SW) Pipe Plant is equipped with submerged arc welding

process and produces large diameter pipes. Hydrostatic pressure testing, ultrasonic testing and

eddy current testing are some of the features which ensure quality control. The Electric

Resistance Weld (ERW) Pipe Plant caters to the smaller diameter pipe consumers. This plant has

been recently upgraded to enable it to produce API grade pipes. The 3-LPE Pipe Coating Plant

produces value-added pipes by providing 3-layers of Poly Ethylene coating on ERW and SW

pipes of Rourkela Pipe Plants. Set up with technical knowhow from M/s Socotherm Spa, Italy,

the unit is in strict compliance with the Pollution Control norms as per European standards.

Traffic & Raw Material

The Traffic & Raw Material Department deals with procurement and supply of raw materials to

various user departments, internal movement of in-process and other material from one unit to

another and despatch of finished products in railway wagons to outside parties or SAIL

warehouses.

4.2 Clients:-
4.2.1 TATA
Our Products continue to be a favorite with all quality conscious users of
Automobiles & White Goods/Domestic Appliances & General Engineering Industries. We take
great pride in maintaining the highest standards of quality which our customers expect and it is
no wonder that eminent corporate like,

Honda Siel Cars Philips India


Telco Hindustan Motors
General Motor Bundy India Limited
Hyundai Motors Tecumesh
Ford Motors Bajaj Auto
Mahindra & Mahindra Honda Motorcycle
Eicher Tractors Yamaha,
Ashok Leyland Bajaj Tempo
LG Electronics NRB Bearing
Whirlpool Harsha Engineers Limited
Videocon Voltas
Daikin Shriram BHEL
National Matsushita Alstom Limited
Samsung Electronics L&T
Godrej GE Motors
IFB Johnson Lift
Fedders Lloyd Kone Elevator
Carrier Refrigeration Lucas TVS
Electrolux Group SKF Bearing
Hitachi Air conditioners Crompton Greaves

And so many such big organizations continue their unbounded trust on us and are regularly
sourcing our products. Tata Steel BSL Limited is a globally renowned one of the leading
prominent player in Steel Industry. Backed by more than two decades, of experience in Steel
making, Tata Steel BSL is now India's 3rd largest Secondary Steel Producer company with an
existing steel production capacity of 2 million tonnes per annum's (approx.).

The first stake was driven into the soil of Sahibabad (Uttar Pradesh) in 1987. His vision helped
BSL overcome several periods of adversity and strive to improve against all odds. The company
has three manufacturing units in the state of Uttar Pradesh (Sahibabad Unit), Maharashtra
(Khopoli unit), and Odisha Plant (Meramandali unit) in India and sales network is across many
countries.

4.2.2 JSW STEEL

Clients:
JSW Steel, the flagship company of the JSW Group, is today an integrated steel
manufacturer. It is the largest private sector steel manufacturer in terms of installed capacity.

JSW Steel is one of the lowest cost steel producers in the world. It has established a strong
presence in the global value-added steel segment with the acquisition of steel mill in US and a
service center in UK. JSW Steel has also formed a joint venture for setting up a steel plant in
Georgia. The Company has also tied up with JFE Steel Corp, Japan for manufacturing the high
grade automotive steel. The Company has also acquired mining assets in Chile, USA and
Mozambique.

4.2.3 SAIL

CLIENTS

12 major customers of SAIL in the eastern region are

RITES Wadia Techno Engg Lahmeyer India, BBJ,


Services,

Bridge & Lloyds Insulations, Simplex Infra M N Dastur


Roof, Structures and Co

L&T MMH, Tata Growth Shop, WBSEDCL, KMC

4.3.1 A SOAP-LIKE DISTRIBUTION NETWORK(TATA STEEL)


To achieve this end, Tata Steel embarked on an exercise called Retail Value Management
(RVM) in 2000, with the help of McKinsey, a top consulting firm. It also initiated a strategy of
retaining its key industrial customers through a programme called Customer Value Management
(CVM), which aimed at migrating its large and promising customers, especially original
equipment manufacturers (OEM), from transaction selling to a collaborative mode of
consultative selling and eventually to strategic partnerships that created mutual value by
enhancing value chain competitiveness. The CVM approach was highly successful, and much
appreciated even in the academic circles for its potential across B2B companies. Given the
promise of the automobile and construction sectors, it focused on 25 promising clients from
1,500 business customers it had. While CVM targeted high-margin, high-value B2B markets,
RVM focused on low-value, high-volume B2C markets. Given its sheer scale of targeting 19,000
villages across India, Tata Steel’s B2C journey was a fascinating one.

 
Tata Steel's key B2B customers in the automobile sector

RVM consisted of two key steps – mapping the market and modernizing retail channel partners.
Over a year, the company studied most of its retail market, district by district, exploring the
number of shops, buying patterns and buying behaviour. It was already enjoying a premium of
25-30 percent over the next best competitor in existing products like the agricultural implements
and hand-tools, its oldest retail product category since 1930s. In rural markets, farmers would
ask traders, ‘Mujhe Tata Ka Maal Chahiye’ (I want Tatas’ products.) ‘Agrico, Tata Steel’s brand
was very powerful, particularly in rural areas. The challenge before us was to reach the entire
retail market, especially when steel is a very bulky material,’ admitted Anand Sen.

By 2001, the company embarked on a three-phase development process and launched a


‘Distribution Dream Plan’ with the target of touching at least 10-lakh retail customers. “We
wanted to be present in any village which had more than 5,000 people. Our material would be
available within five kilometres of where it is required,” recalled Anand. As per the 2001 census,
there were nearly 19,000 villages across India that had a population of 5,000 and more. They
accounted for a population of nearly 16-crore people. This massive pan-India presence had to be
complemented with buyer awareness. While everyone knew where soaps and shampoos are
available, the awareness of buying steel products was rather limited. Hence, customer
engagement and channel modification emerged as two focus areas.

To gain direct access to prospective customers, and understand their requirements first-hand, the
company participated in village fairs, Melas and Haats. Through focus group discussions, a lot of
ideas were generated at the grass-root level. The company also conducted masons meet,
plumbers meet, and structural engineers meet in urban areas to understand their pain points and
gain valuable feedback that could be used in product design and channel design. The ‘customer
week’ at Jamshedpur was used as an opportunity to invite customers to visit the plant and engage
with them for ideas and issues. The top leadership including Dr. Jamshed Irani and Muthuraman
(CEOs of Tata Steel) participated in these interactions with customers and addressed
complaints.   

The second focus area was redesigning its distribution channel and modernizing channel
partners. Till then, traders sold Tata Steel products in the Mandi (local market) and had no regard
for end-customers. As part of its new strategy, the company changed its rules of appointment.
Instead of a trader, it appointed a distributor with exclusive territory. The distributors were
selected through a three-step process,

Step 1 Involved qualifying criteria on the interested entrepreneur’s investment


capabilities and market reputation.

Step 2 Involved a screening of applications based on criteria such as market knowledge,


past performance and experience in business.

Step 3 Final selection based on an interview by a panel of senior Tata Steel managers.
This indicated the rigor the company adopted in selecting those channel partners
who would be their representatives to the larger market.

Tata Steel assured these distributors of good business and returns. However, it demanded
discipline and grass-root connect from them. The distributors were initially sceptical of the
company’s assurance as the steel market was cyclical in its nature. They thought that one bad
phase would reveal Tata Steel’s commitment or the lack of it. That happened in 2003-04, when
international steel prices increased massively in response to expanding demand and soaring input
costs. Domestic prices were much lower. Most Indian steel companies were exporting their
products to make the most of the higher international prices. Tata Steel did not. It stuck to its
commitment to its distributors and gave them priority by supplying products at pre-fixed prices.

As part of its RVM focus, Tata Steel started appointing 500-1,000 new retailers (aka dealers)
every year. Within a distributor’s territory there would be 60-200 retailers. While dealerships
were given by the company, the distributors were their contact points. The company would
supply products to its distributors, who in turn would make them available to retailers within
their territory. The retailers were the last mile connect with end-consumers. The company
followed a hub and spoke model, Jamshedpur being the big hub with four regional hubs. For
example, Nagpur was the regional hub for the west with spokes such as Ahmadabad and Pune,
that were stockyards fed on demand. From these places, the distributor lifted products. At the
spoke-level, for example the local Gujarat distributor of Tata Steel was an exclusive distributor
and picked up his requirements based on his retailers’ needs. Each distributor handled a specified
territory and 60-200 retailers. The retailers were located in the market and sold the products to
the final consumer.

Tata Steel’s dedicated customer account managers (CAM) were responsible for engaging with
channel partners across different territories. ‘When our CAMs started visiting retailers, they were
surprised. They had never seen anybody from Tata Steel. The distributor was the face of the
company. Suddenly, they found Tata Steel asking for feedback. That is when we started getting a
very strong band of retailers, some of whom would stock only Tata Steel products,’ recalled Sen.
To ensure that its products reached end-consumers in the most convenient manner, Tata Steel
studied leading FMCG companies like P&G, Hindustan Unilever and Asian Paints, who were
highly successful in channel management strategies for B2C products. These companies operated
retail channels with different levels, and material passed through different hands. By adopting
their strategies, Tata Steel transformed the way retail steel business was done in India. Its focus
on B2C made it a pioneer in RVM.

4.3.2 One to Combine Distribution Network: (JSW STEEL)


Sajjan Jindal-led JSW Group is combining its distribution and supply chain expertise across
the steel and cements businesses under an integrated JSW One initiative.

JSW Group has presence in Steel, Cement & Paints business in India. Since, all the three


products have a common set of customers, in a bid to reach out to this common set of clientele,
an integrated effort is being made via the initiative.

JSW One has been created as a marketing initiative and is not a registered company, informed a
company source close to the development.

JSW One has commenced operations in the eastern region, which will be scaled-up pan-India
over the next couple of years, said JSW Group in its release today.

Currently JSW Group has 1,766 cement dealers and 950 steel dealers in eastern region of India.
Out of these, only 110 dealers currently sell both steel and cement.

The initiative will derive synergies to benefit both the steel and cement businesses by
streamlining and maximising the depth and expanse of JSW Group’s sales and supply chain
network.

JSW One will also combine the Group’s expertise across product portfolio to provide
comprehensive service capability to its customers.
“We have launched JSW One to leverage our Group’s distribution, supply chain and product
synergies across both the steel and cement businesses. Through JSW One, we aim to alter the
way we market our products to our customers. We already have a strong presence through our
various businesses in eastern India, which can be leveraged to quickly scale up our combined
offerings in this region,” the release quoted Parth Jindal, managing director at JSW Cement as
saying.

JSW One enables the JSW Group to become a one-stop-solution for the consumer’s home-
building requirements as well as benefit from the advantages of customer overlaps within the
different businesses.

The JSW One initiative will also help channel partners of both the businesses to tap into new
revenue streams through the cement and steel products.

JSW One has commenced operations with the cross-selling JSW Neosteel TMT rebars and
cement portfolio to its channel partners. It will help expand the Group’s on-ground reach to bring
JSW closer to its customers.

4.3.3 Distribution Channel: (SAIL)

Even as SAIL continues its triumphant journey of steeling India’s infrastructural development by

contributing millions of tonnes of steel products to projects of national importance, it maintains

its thrust on empowering ordinary citizens in even remote corners of the country by meeting their

needs of building homes, schools, hospitals, industrial sheds/godowns, bus stands, etc., and

manufacturing agricultural equipment, household furniture, utensils and other steel-based items.

This is part of SAIL’s endeavour to raise the level of steel consumption in the country, in

keeping with the National Steel Policy that seeks to take per capita steel usage to the level of 158

kg by the year 2030.

To facilitate this effort, SAIL has set up a countrywide network of over 2,300 Dealers who
ensure availability of quality steel in virtually all the districts of the country for building long-
lasting, cost-effective and safe structures. With a consumer-centric approach, SAIL has launched
a new category of TMT bars branded as SAIL SeQR and is marketing the same through its ever-
growing 2-tier Distributor-Dealer network all over the country in an effort to provide a cost-
effective, quality product at the doorsteps of customers. To ensure ease of availability in
sufficient volumes in countrywide markets, the company is producing SAIL SeQR in three of its
major integrated plants, viz. SAIL-ISP at Burnpur, SAIL-DSP in Durgapur and SAIL-BSP in Bhilai.
Armed with excellent qualities like superior strength and ductility, better weldability and high
bond strength, SAIL SeQR TMT bars are made with clean steel for building safe homes.

4.4.1 PRODUCT LIFE CYCLE: (TATA STEEL)

Developing high strength steels, offering new solutions in the construction and retail segment are
some of our initiatives towards resource efficiency. Tata Steel ensures that the technologies and
processes used to manufacture products must optimize resources and be efficient. They have
been using Life Cycle Assessment (LCA) to evaluate the environmental impact of our products
considering its various life cycle stages. Their LCA studies are based on world steel LCA
methodology which are guided by ISO 14040 and ISO 14044. They believe LCA approach is a
holistic and scientific way of understanding a product’s environmental impacts across its value
chain.
Products of Tata Steel Jamshedpur Works, Tata Steel Kalinganagar Works, Tarapur Wire Plant,
ISWP, Steel Processing Centres (that manufactures Rebar) are so far been covered under our
LCA studies. We plan to cover 100% of our products under LCA. LCA studies helps them in
obtaining eco-labels, identifying environmental hotspots and support customers and internal
teams with product related environmental information.

VAVE (Value Analysis and Value Engineering) initiative with automotive customers generates
ideas on steel usage in a vehicle with an aim to reduce cost and weight of the vehicle. The ideas
are categorized into optimizing grade, thickness, integration and deletion of parts. They also
support customers for implementation of the ideas. VAVE initiative helps customers reduce
overall mass of the vehicle thereby reducing tailpipe emissions during its use-phase.

4.4.2 Product Life Cycle: (JSW STEEL)


1st Phase

Raw Materials
 Optimise mix and sourcing of key inputs like iron ore and coal to weather a volatile
pricing environment
 Explore various contract options like long-term/spot/ indexing
 Backward integration through acquisition of iron ore mines
 Enabling production of steel at competitive rates, safeguarding and increasing market
share, thereby generating value for shareholders

2nd Phase
Inbound Logistics
 Modal shift: 80% of raw material transported via rail/sea
 Centralised logistics cell to ensure end-to-end integration
 Optimisation of infrastructure spend
 Improving reliability and cost of logistics network, helping conserve financial capital and
mitigating climate change

3rd Phase

Manufacturing
 State-of-the-art manufacturing facilities set up
 Installation of latest technology to reduce consumption of water in operations
 Energy management through waste heat and gas recovery
 Reducing costs, improving profitability and conserving natural resources

4th Phase

Processing
 Hot rolled steel: Construction and infrastructure, industrial and engineering, pipes and
tubes, automotive and energy sectors
 Cold rolled steel: Automotive and, industrial and engineering sectors
 Electrical steel: Electric motors, generators, nuclear power stations and power plants,
among others
 Galvanised steel: Construction and infrastructure and consumer durables sectors
 Colour coated steel: Construction and infrastructure, and consumer durables sectors
 Forming the backbone of the Indian economy and enabling growth of core sectors

5th Phase

Outbound Logistics
 Modal shift: 80% of finished products transported via rail/sea
 Centrally integrated
 Last-mile connectivity tracking using digital technologies
 Higher reliability in dispatching, better monitoring of logistics, cost optimisation and
improved supply chain efficiencies

6th Phase

Use
 Highly diversified portfolio
 Focus on innovation and new value-added product development
 Joint venture agreement with Marubeni-Itochu Steel Inc., Tokyo, to set up contemporary
steel processing centres
 Developing 73 new grades with a 13% increase in sales of valueadded and special
products
7th Phase

Recycling
 Recycling of steel scrap
 Increase in recycling of water
 Supply of recycled water for irrigation in water-starved regions around the operations
 Reducing environmental footprint and demand for virgin resources

4.4.3 LIFE CYCLE OF SAIL: (SAIL)


SAIL is in the process of modernising and expanding its production units, raw material resources
and other facilities to maintain its dominant position in the Indian steel market. The aim is to
increase the production capacity from the base level production of 14.6 MT per annum (2006–
07) to 26.2 MT per annum of hot metal.
The following table shows the increased production of various items prior to and post expansion.
On 25 May 2012, Steel Authority of India Limited entered into a Memorandum of
Understanding with the Government of West Bengal and Burn Standard Company Ltd. for
setting up of a Railway Wagon factory of approximately ₹210 crore (US$29 million). This
project will create an approximate 75,300 jobs.
The company also looking to establish one full capacity integrated plant in Andhra
Pradesh or Telangana and surveying the possibilities to set up the plant. The plant, which was
proposed to be the first steel plant of such scale in the state, was estimated to get an investment
of Rs. 4,400 crore.

4.5.1 MARKET SEGMENTATION: (TATA STEEL)

Market Market sub-segments Products & Brands Key Support


Segment (customer groups) Initiatives to
Customers
Construction Individual House Builders Tata Tiscon (Rebars) Superlinks & Footings
Tata Structura (Pipes) Customer Service
(B2C) Tata Pravesh (Doors & Engineers
Windows) Experience Zones
Rural Roofing Tata Shaktee (Roofing sheets) Roof-junction
(B2C ) Nest-in (Housing, Water ATMs, (Installation solution)
bio-toilets) Roofing Accessories
Infrastructure TMT Rebars (Higher Dia Tiscon Readybuild
(B2B) Rebars, Corrosion Resistance (Cut & Bend Bars)
Housing & Commercial Steel) Bar Bending
(Business 2 Emerging Schedules
Corporate Account)
Automotive Auto OEMs Hot Rolled, Cold Rolled, Coated
(B2B) Steel Coils & Sheets Product Application
Experts & Customer
Service Teams
Shaped Blanks
Value Analysis &
Value Engineering
Support
Auto Ancillaries Hot Rolled, Cold Rolled, Coated Certified Service
(B2B, B2ECA) Steel Coils & Sheets Centres
Tubes

Spring
Bearings
General Panel & appliances Steelium Panel Application Specific
Engineering (B2ECA) Galvano Panel, Products
Fabrication & Capital Appliance
Goods Restriction of
(B2ECA) Hazardous Substances
Furnitures (RoHS) Compliant
(B2ECA) Product
Industrial LPG Hot Rolled Higher Width
(B2B) LPG Blanks
Single Cast Supplies
Welding Wire Rods Vendor Managed
(B2B) Inventory
Wire-2-Win
(Knowledge Platform)
Process Industries (e.g. Ferro Chrome
Cement, power, steel) Process Tubes Long-Term Contracts
(B2B) Customized
Packaging
Agriculture Agro equipment Bearings Early Vendor
Involvement
(B2B)
Fencing, Farming & GI wires Amritdhara (Borewell
Irrigation Agro & Garden Tools pipe with seamless
(B2C) Conveyance Tubes socket)
Barbed Wires

4.5.2 MARKET SEGMENT: (JSW STEEL)


Steel usage in the construction sector is gaining significant importance and is becoming a
material of choice. The varied attributes of steel, its strength, longevity and recyclability make it
a preferred material among consumers.

Within the B2B segment, the demand for newer grades and value-added products are increasing.
This presents a large market opportunity for players like JSW Steel to brand and market their
products to various user industries of steel.

Retailisation is also on the rise, with an opportunity for steel to be offered as a bundle with services such
as fabrication. This trend is expected to be further augmented in line with India’s rising per capita steel
consumption. In this scenario, brand-led growth and increasing customer connect have become
priorities for steel players.

4.5.3 MARKET SEGMENT: (SAIL)

Besides supplying its full range of products to institutional buyers like Defence and the
Railways, SAIL is successfully servicing the requirements of a variety of customers in the
following user segments:

Projects Construction
Heavy engineering Fabrication
Tube manufacturers Cold-reducers
Auto segment Cycle
Drum & Barrel Container
White goods Transportation (oil/gas/water)
Coated sheet manufacturers Wire drawers
Agricultural equipment

4.6 MAJOR COMPETITORS:


Arcelor Mittal

Essar Steel
Jindal Steel and Power

VISA Steel

MSP Steel and Power Ltd.

4.7.1 POSITIONING STRATEGY: (TATA STEEL)


SWOT Analysis
SWOT analysis is conducted for an organization in order to comprehend its overall
Strengths, Weaknesses, Opportunities and Threats. Once these aspects are clearly understood in
the right perspective it becomes easy of an organization to capitalize on its strengths, devices
strategies to reduce or eliminate weaknesses and explore all the opportunities available to
improve its market position and standing. A SWOT analysis of Tata Steel would assist in
comprehending the current position of the organization and the challenges and issues faced by it.
Besides the negative aspects the positive aspect could be ascertained.

STRENGTHS:
 Tata Steel has its mines which ensure a steady supply of raw material mainly iron ore
thereby making the organization self sufficient in terms of its raw material needs for
production purposes.

 Tata Steel has a Research and Development department which is result oriented and
dedicated. Research is carried out in continuity and experiments conducted in areas of
procurement of raw material, development of product, steel making procedures, blast
furnace and other areas. Hence, resultantly Tata Steel products are the best in the Indian
as well as global market.

 The organization has a strong and growing market in South East Asia and India. Until the
recent past, Tata Steel was the only supplier of value added steel to the Indian Auto
Industry.

 By the year 2011, it is expected that Tata Steel have a capacity of 10 million tonnes per
annum by way of production.

 The internal control system of Tata Steel is highly efficient. The Corporate Audit
department of the company continuously supervises the internal control system. The
primary function of this department is to provide the Board of Directors of the company
with updates about the effectiveness of the company’s risk management policies, identify
opportunities to improve on the growth prospects of the company, identify bad sectors
and provide recommendations in terms of new policies to achieve organizational goals.

 Tata Steel has had a foray of good and productive mergers and acquisitions and has
geographically entered into new geographical territories.

 Enterprise Risk Management (ERM) is a new process which is being worked upon by
Tata Steel to have a more defined risk management approach. The key objectives of
(ERM) are the following:

 To have an integration of all processes of planning and decision making

 To have a proper framework to monitor risks at all levels of the organizational hierarchy

 To ensure an effective process wherein the Board of Directors and Shareholders are
regularly updated about vital happening in the organization affecting the interests of the
Company

 Greater stability is expected to be brought about by Tata Steel on account of the structural
changes the organization is going through currently.

 The very best of technology is adopted by Tata Steel to ensure that all the production
processes are environmentally friendly, cost and quality effective.

 By the acquisition of Corus and Greenfield Ventures, Tata Steel has diversified all the
risk entailed in the process of Iron and Steel manufacture.

WEAKNESS:
 Endemic Deficiencies: Tata Steel is confronted with this weakness as they are inherent in
the quality of some of the necessary raw materials. In cooking coal available in India the
content of ash is relatively high and this affects the production of iron and this leads to a
need to import. Nickel, Ferro-molybdenum which happens to be a necessary ingredient
fails to be available.

 There is a shortage of iron ore deposits and arises the problem of insufficient raw
materials. The quality of hard coal deposits is inferior and the cost of coking and non
coking coal is always on the rise causing a rise in the cost of production.

 The organization has to make provision for sustainable methods of production of steel as
the resources for raw material are in a state of depletion and are non-renewable.

 The excessive power shortages in India have resultantly led to a decrease in the
productive output of the plant.
 Low freight capacity and lack of good network of transportation has further led to retard
the growth of the Indian Steel Industry of which Tata Steel happens to be a major player.

 Though India has cheap labor but the productivity of this labor is low and therefore cheap
labor tends to be expensive in the process as overall productivity of the organization is
affected.

 The cost of basic input and services are high. Electricity is 10 cents in India compared to
3 cents in U.S.A. Freight costs from Jamshedpur to Mumbai is 50 dollars per ton whereas
from Rotterdam to Mumbai it is barely 34 dollars.

OPPORTUNITIES:
 In all sectors of the Indian Industry there avails a good scope of increasing steel
consumption and Tata Steel stands to benefit from this happening.

 India has approximately 700000 thousand villages and there is tremendous untapped
potential in the rural areas for marketing steel products. The organization could tap the
opportunity of enhancing steel application in these areas and promote the consumption of
steel and steel products in the rural areas as on account of their large population they
present good opportunities of high revenue.

 The automobile sector, engineering industries, water and irrigation enterprises are the
areas where the organization could focus on promoting steel consumption as the
industries are on varied stages of development and steel forms a necessity in their
production processes.

 It is predicted by business analysts and economists that the world consumption of steel
would triple up in the next few decades. Tata Steel could strategies with long term
objectives to eventually dominate the world market in terms of steel production,
distribution and sale.

 The acquisition of Corus has brought in high technology which could be utilized by Tata
Steel to improve production processes.

 The worldwide booming infrastructure has brought in greater demand for steel and this
opportunity to promote growth and sales could be tapped by Tata Steel.

THREATS:
 Global warming has led to greater environmental costs and the threat to the environment
creates a need for Tata Steel develop a greater sense of responsibility as the raw materials
for production of steel are extracted.

 Scarcity of raw materials and high input costs threaten the very existence of the industry.
 There is a parallel growing threat of substitutes. Plastic and composites are replacing steel
in the spare parts industry of automobiles. Aluminum is another metal which is creating a
threat to the existence of steel but at the moment the high cost of aluminum extraction in
terms of electricity charges has brought the threat under control.

 Steel pipes have been replaced by PVC pipes and RCC pipes in many applications
causing huge revenue losses especially to Tata Steel.

Porter Five Forces Model


In the last several years, Tata Steel has been registering substantial growth in the
domestic market as well as the international market. The global economy prior to recession was
robust enabling Tata Steel to grow abundantly but with the liquidity crisis, there have been
reported medium term hiccups. Tata Steel’ domestic sector has been analyzed through Porters
Five Forces Model to comprehend the competitiveness of the steel sector and understand Tata
Steel efforts and initiatives to safe guard its position for five major threats which predominate
being as follows:

1. New Entrant Threats: Barriers to entry blocking new entrants and the willingness to overcome
the same. Barriers such as governmental policies, economies of scale, product differentiation.

Rivalry among the existing competitors in the market and the intensity of the same

The Suppliers’ bargaining powers

Substitute products posing threats

Threat of Substitutes

Bargaining power of buyers

Entry barriers: High


2. Capital Requirement: Steel industry is highly capital intensive and the requirement of set up of a
business would be around 30 bn dollars and this too depends on location of plant and utility of
technology.

Tata Steel has safeguarded itself in this respect with a lineup of Greenfield projects aimed at
domestic and international establishment. The domestic establishments would include areas such
as Jharkhand, Orissa and Chhattisgarh and on the international scenario there is Bangladesh, Iran
and Vietnam.

Currently, Tata Steel has successfully expanded its capacity from an existing 5 mtpa to 6.8 mtpa
at Jamshedpur with and investment of 5000 crore. The organization is now in the process of
further up gradation of the existing plant with further capacity from 6.8 mtpa to 10 mtpa. The
expected investment is amounted to be 15000 crores.
The matter of the fact is that any new enterprise cannot compete with Tata Steel in terms of
investment, growth or expansion at the financial inputs of Tata Steel is substantially high.

3. Economies of scale:
Tata Steel enjoys complete economies of scale as the organization owns mines for vital raw
material required for production processes. Lower costs, Research and Development and
bargaining power of the organization constitutes economies of scale. Coal and limestone mines
are in possession of the company. Through joint ventures and on its own Tata Steel owns assets
in countries like Australia, Oman and Mozambique.

4. Government Policy:
The governmental policies of India in context to steel producers are favorable but there are few
draw backs with regards to land acquisition and iron ore mines acquisitions. For new businesses,
regulatory issues pose a hurdle. But Tata Steel is a business organization which is more than a
100 years of age functioning successfully and has acquired respectability and recognition from
the Government of India.

The government favors steel manufacturers in terms of policies. But it should be noted that there
are certain discrepancies encompassing the allocation of iron ore mines and land acquisitions.
Furthermore, there exist hurdles in the form of the regulatory clearances.

5. Product differentiation: 
Steel is a commodity which fails to have a major price distinction as it does categorize as being
luxury product or a commodity under specialty category. Tata Steel is a business house in
possession of high brand value and has recognition and hence Tata Steel enjoys a premium for
their products on account of the quality the product it possesses. The following brands have been
introduced by Tata Steel which is as follows:

Tata Steelium- the very first kind of Cold Rolled Steel in the world

Tata Shaktee- Galvanized Corrugated Sheets

Tata Tiscon (re-bars)

Tata Bearings

Tata Agro

Tata Wiron

Tata pipes

Tata Structura
The primary threat in terms of completion are faced by Tata Steel are in the form of Global Steel
Industries or Giants such as Arcelor-Mittal and POSCO. Penetrating the Indian Markets is the
intention of these Global Steel Business Houses.

A situation of high competition has arisen on account of China which greatly influences global
prices by exporting to nations all over the world its produce and owing to this the steel industry
being global faces threat and competition with China on the forefront.

In context to the pricing of steel, there fails to exist any difference between the products which
are competing in the markets. Tata Steel has competitors in the form of four other firms in the
domestic markets. The competing firms with Tata Steel are firms such as SAIL, JSW, ISPAT
and ESSAR STEEL.

Besides these few competitors there are a substantially huge number of small firms into steel
production comprising 35% of the total domestic market share.

 It is also evaluating several other mineral projects in Brazil and Australia
Heading with the goal of gaining logistics control, Tata NYK Shipping Pte Ltd, and Nippon
Yusen Kabushiki Kaisha (NYK Line), a shipping major of Japan have initiated a into a long-term
charter for eight supramax/panamax vessels and the revenue returns on such capital assets,
weakening the prospects of US growth and in addition interest rate cuts. The primary counterpart
to the resultant lowering of the dollar has been the increase in value of the euro, the yen, and
other global floating currencies such as the Canadian dollar and some rising economy currencies.
Corus acquisition is in reality being funded by a great amount of debt. This applies immense
pressure on the organization’s policy line, and in the event of the business environment
declining, the requirement to repay this debt could restrain Tata Steel in its future endeavors and
organizational plans of expansion. To add to this, this could also limit the Company’s inorganic
development options.

POLITICAL:
Tata Steel has committed a substantial funding program of investment in politically unstable
nations such as Thailand, Iran, Bangladesh and Mozambique. The complete process of setting up
plan is beyond schedule on account of lack of gas supply in the nation of Bangladesh. On the
other hand, Iron ore mine lease in Iran is pushing up the entire Project cost.

Rise in infrastructure spending by the Indian Government and development of network of roads
could generate good amount of savings in freight and transportation expenditure, making steel
companies and other industries of the nation of India internationally competitive.

SOCIAL:
Tata Steel Ltd is the recipient of the Golden Peacock Global Award for Corporate Social
Responsibility(CSR) for the functional year 2009. The award represents the firm’s continual
commitment by business to ethical behavior, to economic development and to improving the
quality of life of the workers and their kin, as well as to engagement with local social group.
Right from organizational policies on corporate accountability, alcohol and narcotic, and
preventive measures for HIV, to a Code of Conduct that reaches out up to stakeholders, ethics
and responsibility are intertwined in the daily working course of Tata Steel’s business.

LEGAL:
Tata, the globally is recognized and appreciated for its ethical practices, CSR (Corporate Social
Responsibility) is not just a formality but for the essence of the business. It is very hard to find
any problematic situation in TATA’s century old history with regards non-ethical practices or
behavior. But in recent times Company is suffering from Land Acquisition issues in Singur,
West Bengal. Even though it’s not an issue in direct context to “TATA STEEL” but the dilution
in brand “TATA” has a significant impact on the stock prices of Tata Steel.

4.7.2 POSITIONING STRATEGY: (JSW STEEL)

SWOT Analysis of JSW Steel

JSW Steel Strengths Below are the Strengths in the SWOT Analysis of JSW Steel:
1. India’s third largest steelmaker with a combined capacity of 14+ MTPA
hence enjoys economies of scale
2. High growth prospects with a consistently increasing revenue and strong
financial position
3. One of the lowest cost steel producers in the world
4. First steel producer in the world to use Corex Technology for producing
hot metals
5. Operates in both upstream as well as downstream sectors
JSW Steel Weaknesses Here are the weaknesses in the JSW Steel SWOT Analysis:
1. Limited portfolio diversification compared to industry leaders
2. Less number of mines under its hood affects availability of raw materials
3. Capacity utilization is not cent percent
JSW Steel Following are the Opportunities in JSW Steel SWOT Analysis:
Opportunities 1. Increase in demand from all sectors in Indian & Global world
2. Mergers & Acquisition to keep steady supply of raw materials
3. Product development by investing more in R&D
JSW Steel Threats The threats in the SWOT Analysis of JSW Steel are as mentioned:
1. Cyclical nature of steel industry needs to have efficient process of
production
2. Competition from existing and foreign players
3. Government and environment regulations
4. Changes in the prices of raw materials & end products
4.7.3 POSITION STRATEGY: (SAIL)
Steel Authority of India, or SAIL, is one of the largest steel manufacturers in the world
based out of India. SAIL delivers customised steel products for industries and commercial
use in its marketing mix. SAIL’s product catalogue includes SEMIS [Blooms, Billets, Slabs],
Structurals [Beams, Channels, Angles, Crane Rails], Bars, Rods and Rebars, Wire Rods, Coils
and Sheets, Plates, Pipes, electrical steels. SAIL also manufactures Rails, Wheels, Axles and
Wheel Sets, Alloy Steel plants, Pig Iron, Parallel Flange beams and structurals. It provides
customised steel as per demand of the client. With improved modernization, Steel
Authority of India supplies a range of heavy and medium structural section, including
Parallel and Flange Beams, which meets industrial quality and standards. The SAIL
company produces semi-finished products, including blooms, slabs and billets, which are
converted into finished products in the company's processing plant. Steel plates are used
mainly for the manufacture of bridges, ships, storage tanks, boilers and railway wagons and
boilers. SAIL produces steel bars and rods through a process of hot rolling billets in the
finishing mills.

SWOT Analysis of SAIL Steel Authority of India

Below are the Strengths in the SWOT Analysis of SAIL Steel


Authority of India:
1. Strong employee workforce with over 130,000 employees
2. Technical & managerial expertise in the industry
SAIL Steel Authority of
3. Strong raw material supply chain management
India Strengths
4. Strong financial resources owing to being a Govt enterprise
5. It has an annual production of over 13million tonnes
6. Partnerships with NTPC, Bokaro Steel etc has strengthened its
market position

Here are the weaknesses in the SAIL Steel Authority of India SWOT
SAIL Steel Authority of Analysis:
India Weaknesses 1. Govt and political intervention affects operational efficiency
2. Higher profit margins are not allowed

Following are the Opportunities in SAIL Steel Authority of India


SWOT Analysis:
SAIL Steel Authority of
1. Expansion & growth
India Opportunities
2. Globalization with tie-ups with international players
3. Mergers & Acquisitions
The threats in the SWOT Analysis of SAIL Steel Authority of India
are as mentioned:
SAIL Steel Authority of
1. Change in Government policies & economy trend
India Threats
2. Emerging & existing private sector players
3. Technological developments in outside world

4.8.1 TATA STEEL Promotion Strategy:


The promotional and advertising strategy in the Tata Steel marketing strategy is as follows:
Tata Steel is a business to business brand, and has no direct business with the consumer. In B2B
Marketing, promotion and advertising plays an important role in order to increase the sales.
TATA steel started branding its product in order reach to customers in an efficient way. Its
strategy mainly focused on branding and moving to high value added products. Certain internal
campaigns were started whose focus was customer. Some taglines such as “Customer first-haar
haal mein” were started. Communication tools used for the Tata Steel brand launches were
mainly print ads and outdoor advertising. TV commercials were launched giving messages of
happy customers. Hence, this covers the marketing mix of Tata Steel.
Tata Steel has set up a global benchmark for corporate citizenship and value-creation. It has
adopted numerous marketing campaigns to increase and retain its brand visibility. Ad campaigns
have been launched via newspapers, radio, magazines, television,
billboards, Twitter, Facebook, its own website and blogs.

Tata Steel has always put its onus on responsible resource management and environmental
practices. It has set up energy-efficient operations and tries to make most usage of recycled
products. The company has been associated with several sporting activities at National and State
levels. It has opened sports centres that have world-class facilities like Tata Athletics Team, Tata
Archery Team Academy and Tata Football Academy.

Tata Steel has been the recipient of numerous awards and acquisitions in recognition of its works
like 2015 World’s Most Ethical Company, Best Performing Integrated Steel Plant in 2010-11,
MAKE Award in the year 2012, “Best of All”, Rajiv Gandhi National Quality Award in the year
1996 and Deming Application Prize in the year 2008.

4.8.2 JSW STEEL Promotion & Advertising Strategy:

The promotional and advertising strategy in the JSW marketing strategy is as follows:
As the businesses are mostly B2B JSW involves in dealer promotional activities. It uses ad
campaigns which are run in television and digital spaces. Its latest brand promotion ‘Rukna Nahi
Hai’ is launched for Olympics. It also uses on ground amplifications, slides and ads in cinema
halls and also outdoor promotions like billboards and hoardings at strategic locations. JSW uses
social media platforms also effectively to promote its brand. Ogilvy & Mather creates ads for
JSW, it previous ads include ‘will of steel’ showing its brand ambassador Geeta Phogat journey
into mainstream wrestling.
Social Media Presence of JSW Steel
JSW Steel is present on all the major social media like Facebook, Instagram, Twitter, and
Youtube. It has been working on posting consistently on all the social media platforms except
Youtube.
It is doing well on social media by making things relatable for its followers by using common
trending topics. For example, have a look at the following campaigns.
It had launched this campaign with the name #NervesOfSteel for giving tribute to the frontlines
of the COVID-19 crisis in their fight for humanity.

Website Overview of JSW Steel


JSW Steel’s website, www.jsw.in/steel is a very well designed website. 
Built with user experience in mind, JSW Steel’s website lays out a well-defined journey for its
visitors. At the first glance, the website looked like it does not belong to a steel company. The
inner pages of the site are even more impressive than the home page, which itself talks about
how the company has worked on this aspect. 
Wisely, when you scroll the home page, JSW Steel communicates its offerings, what it is as a
company, shows its projects to help visitors quickly get an overview. The placement of video
and image above text along with highlighting the most important points helps visitors quickly
know what is on offer. 
It also has a blog section on its website that provides in-depth knowledge on steel and steel
industry-related subjects.
JSW Steel is one of the principal sponsors of the Indian Premier League team, Delhi Capitals.
With Rishab Pant as its brand ambassador, JSW Steel promotes its product offerings in a fun and
quirky way by rolling out various advertisements.

JSW Steel actively focuses on the promotional aspect despite being a complete B2B entity. 
 It has been in the industry for so long and has been a part of many flagship projects that
its work speaks for itself which also results in healthy word of mouth promotion
 Rishabh Pant, the popular cricketer is signed as the brand ambassador of the JSW Steel
 It is also the official sponsor of the popular Indian Premier League Team, Delhi Capitals
4.8.3 Steel Authority of India Limited (SAIL) Promotion &
Advertising Strategy:
The promotional and advertising strategy in the Steel Authority of India Limited (SAIL)
marketing strategy is as follows:
SAIL has always been visible through promotional and branding activities in its marketing mix.
SAIL has sponsored the training and other expenses of wrestlers Sushil Kumar and Yogeshwar
Dutt for preparation for the 2010 Commonwealth Games. Another wrestler taking part in the
Olympics, Rajiv Tomar, is also being developed by SAIL for the Commonwealth Games.
Through Make in India campaign, it has created awareness among entrepreneurs to associate
with SAIL. It is working towards empowering small steel consumer in rural areas of the country
by making steel available through its dealer network.
SAIL International Trade Division has established its brand name globally by supplying Rails,
Structurals, Merchant products, Wire Rods, Re-bars and other products. Its products are covered
by certifications such as CE marking, TUV and 'U' mark required by sophisticated end uses in
European markets. Steel Authority of India has undertaken several CSR projects to create
awareness among people about the practices adopted for sustainable development. Few projects
include Providing Borewell with motor and construction of 20KL GLSR and pumping at
Laxmipuram Thanda of Kolagutta, Durgi Mandal, Guntur District, Andhra Pradesh and
providing Skill development training in Smart Phone repairs at Gwalior. Hence this covers the
marketing mix of SAIL (Steel Authority of India Limited).

4.9.1 PRICING METHOD: (TATA STEEL)


Below is the pricing strategy in Tata Steel marketing strategy:
Tata Steel is a leading steel manufacturer not only in India, but in the world.
In steel industries there are various factors that affect the pricing of the products. Like other
companies, the marketing mix pricing strategy of Tata Steel is also dependent on various factors.
Some of the major factors are as follows:
1. Cost of production
2. Demand in the market
3. Government regulations
4. Competitions
Tata steel is well known for keeping its production cost very low. This gives Tata Steel a
competitive advantage over others. There are various reasons as to why the companies
production are so low compared to other competitors. Few of them are:
• Tata Steel acquires its raw materials and other products required both from the domestic market
as well as globally. The company has coal mines in Jharia and Bokaro. The mines in Bokaro has
reserves of around 196 million tonnes. It also owns iron ores and chromites mines in other parts
of the country.
• Tata steel has used technologies which help them keep the production cost low thus helping it
maintain the good quality as well as keep the price low.
The demand for steel has also increased in recent years. Also one more advantage of Tata Steel’s
is that their iron ore reserves are much more than their current needs thus giving them an
advantage.
Tata Steel has adapted Market Penetration as their pricing strategy. They assume that the demand
of the product is highly elastic. So, capability of Tata Steel to maintain low price helps them
maintain a huge customer base.
Tata Steel’s sales strategy was put to test by the lockdown and subsequent reluctance of
customers to move out fearing infection. This pushed the firm to reorient its marketing blueprint.
“We divided the country not just into districts, but also into zones, and deployed the limited
amount of sales force we had,” Peeyush Gupta, vice-president (marketing and sales) of Tata
Steel, told Business Standard.

4.9.2 Price Strategy :(JSW STEEL)

Before we understand its pricing strategy, we have to go through the working of the steel
industry. 
Firstly, the steel industry is a cyclical industry where the industry booms when the economy of
the country booms and goes through downturns when the economy is not booming. 
Secondly, steel companies majorly depend on two key raw materials, Iron Ores and Coking
Coal, and prices of these raw materials fluctuate based on evolving demand and supply in the
global markets.
Now that being said, this is how JSW Steel’s pricing is set or influenced from the following:
 The pricing is as per the industry standards in most of the cases as it’s a business-to-
business (B2B) selling entity. 
 The pricing also depends majorly on the prices of its key raw materials and the status of a
country’s economy 
 The pricing is also set based on pre-agreed contractual agreements
This is how the price strategy of the company revolves around.
As the raw material prices are very dynamic and market forces change very frequently it has to
modify its strategies to be successful. Prices are generally reviewed and modified every fortnight
or at least once in a month. It also follows differential pricing by pricing differently at different
locations. Current JSW Neo Steel TMT bars are prices starts at Rs.242 for 8mm and 32mm bar is
priced at nearly Rs.3734. These are the prices per piece.

4.9.3 Steel Authority of India Limited (SAIL) Price/Pricing Strategy:


Below is the pricing strategy in Steel Authority of India Limited (SAIL) marketing strategy:
SAIL being a market leader and a government enterprise controls most of the pricing factors in
the industry.
The pricing decisions in its marketing mix are guided by the price offered by bidders during the
auction. Other factors include prices offered during auction sales, managing director’s approval
and quantity of materials required. The average price offered during auction is taken into
consideration based on the decision to fix the prices of materials and further breakup pricing are
adopted. The economies of scale influence the pricing decision of SAIL as the larger quantity
purchased will lead to lowering of prices. The standard pricing committee in SAIL reviews the
price of various products and takes decision for increasing the profit. When taking pricing
decisions, the following factors are taken into consideration related to material in the stock,
forecast of next month, market conditions and transport facility

4.10.1 EXPORT: (TATA STEEL)


1. Activities relating to exports:
Tata Steel exported products such as H R Coils, Ferro Chrome, Wires to the USA,
European Union, Middle East, Thailand, Vietnam, Korea, Iraq, Jordan, Qatar, Afghanistan and to
SAARC countries in the Financial Year 2013-14. The Company exported H R Coils to
customers in neighboring markets, Middle East, Thailand, and South Africa to enhance
utilization of TSCR (Thin Slab Caster) products.
The Long Products Division continued to strengthen its presence in markets of strategic
importance, predominantly the SAARC countries. Wires Division registered a 45% year on year
growth in Financial Year 2013-14 and increased its enquiry to order turn around ratio from 7%
last year to 14% this year. Ferro Alloys Minerals Division was recognized as a "Star Performer
in Ferro Alloys in 2012-13" in the Financial Year 2013-14 by Engineering Export Promotion
Council (EEPC India).

2. Initiatives taken to increase exports during the Financial Year 2013-14:


 Steel Products: 
Tata Steel increased its share of business with key customers in neighboring markets by
50% and also exported products to countries in SE Asia, Middle East and South Africa.

 Wires: 
The Division obtained approval for supplies of PC Strand wires to select markets in the
Gulf and also developed NatSteel Holdings, Singapore as a channel partner for sales to the
construction segment in Singapore and Malaysia. Wires Division strengthened its presence in
the construction segment in the Middle East, which is a market of strategic importance and of
interest to the Company. There has been a three-fold increase in sale of wires for this segment.
 Ferro Alloys and Minerals: 
Trials were undertaken at NatSteel and TSTH for use of a new product- Silico
Manganese 50 grade, a Manganese alloy. In Ferro Alloys, DDU (Delivered Duty Unpaid)
service was established at Korea, with 10,738 MT being sold to POSCO SS through this mode.
New customers were also acquired in Korea and Japan.

3. Development of new export markets for products and services:


 Flat Products: 
During the Financial Year 2013-14, the Company developed several new customers in
countries including Thailand, South Africa, Bangladesh and Sri Lanka. Approximately 20% of
total export sales came from these new customers.
 Wires: 
The Company developed 15 new customers this year, with supplies being affected for the
first time, contributing ~ 23% to total sales. The Company also entered into new markets in the
EU and Canada for sales of GI Wires.
 Ferro Alloys and Minerals: 
The Division established DDU (Delivered Duty Unpaid) service in Korea, achieving
10,738 MT sales through this mode. The Company entered into a Long Term contract with M/s
Nucor in US for sale of Ferro Chrome. The Division reported its highest ever export of Silico
Manganese at 46,700 MT.

4. Export plans:
 Flat Products: 
Going forward in Financial Year 2014-15, export of Flat Products - approximately 180k
tonnes primarily of H.R. Coils and 98k tonnes of CR coils are planned to be sold to SAARC
countries, South East Asia, Middle East and South Africa.
 Long Products: 
In the near term the Company intends to maintain a presence with some key relationship
customers in the SAARC region.
 Wires: 
In Financial Year 2014-15, the Division will further develop existing markets and seek
product approvals from new customers and new geographies.
 Ferro Alloys and Minerals: 
The Division plans to develop more customers in Japan & Korea and to increase tonnage
under long-term contracts for Ferro Chrome. In Manganese alloys, it will also drive
development of end users for the Silico Manganese 50 grade and remain a dominant supplier to
in-house customers in South East Asia

4.10.2 EXPORT: (JSW STEEL)

JSW is one of the leading conglomerates in India. The key products, services and businesses in
the marketing mix of JSW group are – Steel, Energy, Infrastructure, Cement, Sports and
Ventures. Its steel business is the flagship company and a major contributor to the group’s
revenue. JSW has a capacity of 18 MTPA and it is an integrated steel manufacturer. Its product
portfolio comprises Hot Rolled, Cold Rolled, Bare & Pre-painted Galvanized & Galvalume,
TMT Rebars, Wire rods and also it produces special steel. JSW Energy operates in both Thermal
and Hydel and the combined capacity of energy production is 4,531 MW. The capacity of JSW
Infrastructure is about 33 MTPA and it develops seaports, Shipyards, Townships and special
economic zone (SEZ) that are based on ports. This Infra division also involves in industrial
clusters and last mile connectivity like road, rail and inland water transport. JSW cement is
currently having the capacity of 6MTPA and it uses the slag from its steel plants as raw material
to produce a type of cement called green cement. JSW Ventures invests in companies that are
working in new technologies like IoT, Saas and FinTech. JSW Sports owns the franchisees like
Bengaluru Football Club & The Bengaluru Yodhas wrestling team and also it has a academy
where it trains athletes to help them qualify for Olympics in its Sports Excellence Program.
Soon after the acquisition the group set up its first steel plant in 1982 at Vasind near Mumbai.
Jindal Vijayanagar Steel Ltd. (JVSL) was set up in 1994, with its plant located at Toranagallu in
the Ballari-Hospet area of Karnataka and External Areas of Andhra Pradesh, the heart of the
high-grade iron ore belt and spread over 3,700 acres (15 km2) of land. Located 340 kilometers
from Bengaluru, it is well connected to both the Goa and Chennai Port. In 2005, JISCO and
JVSL merged to form JSW Steel Ltd.
JSW Steel formed a joint venture for a steel plant in Georgia. The company has also tied up with
JFE Steel Corp, Japan for manufacturing the high grade automotive steel. JSW has also acquired
mining assets in the Republic of Chile, United States and Mozambique. Other various countries
like,
JAPAN UK ITALY

LIBYAN ARAB REPUBLIC THAILAND BANGLADESH

GUINEA KAZAKISTAN MALAYSIA

PERU UAE KENYA

4.10.3 EXPORT: (SAIL)

International Trade Division (ITD)– an ISO 9001:2000 accredited unit of SAIL’s Central
Marketing Organisation at New Delhi – undertakes exports of Mild Steel products and Pig Iron
produced by SAIL’s five integrated steel plants.Ever ready to meet the exacting demands of
CMO’s international customers, ITD maintains a close liaison with customers as well as
production units to cater to the customised requirements of its international customers, in terms
of quality, quantity and sizes.

ITD has successfully established the brand name SAIL globally by supplying Rails, Structurals,
Merchant products, Wire Rods, Re-bars, Plate Mill Plates, Hot Rolled Coils, Hot Rolled Plates /
Sheets, Cold Rolled steels, Galvanised steels, Cold Rolled Non-Oriented (CRNO) coils, Stainless
Steel sheets/coils, Chequered Plates, Slabs, Billets, Blooms and Pig Iron, besides cut-to-size Hot
Rolled and Cold Rolled materials in all continents. Most products are covered by stringent
certifications such as CE marking, TUV and 'U' mark required by sophisticated end uses in
European markets.

SAIL products have berthed successfully at Japan, China, Korea, Taiwan, Vietnam, Philippines,
Singapore, Malaysia, Thailand, Indonesia, Australia, Mexico, Europe (UK, Germany, France,
Belgium, Italy, Spain, Netherlands, Portugal), Sudan, Oman, UAE, and many more, as well as in
neighbouring countries such as Myanmar, Bangladesh, Sri Lanka and Nepal.

SAIL products are available in countries like at Japan, China, Korea, Taiwan, Vietnam,
Singapore, Philippines, Indonesia, Malaysia, Thailand, Australia, Mexico, Europe (UK,
Germany, France, Belgium, Italy, Spain, Netherlands, Portugal), Sudan, Oman, UAE, and many
more, as well as countries such as Myanmar, Bangladesh, Sri Lanka and Nepal. Steel Authority
of India has set up its operational units in major parts of the country, which includes integrated
plants like Rourkela Steel Plant, Bhilai Steel Plant, Durgapur Steel Plant, Bokaro Steel Plant and
IISCO steel plant. SAIL has three special plants at Salem, Durgapur & Bhadravati, and one
subsidiary in different parts of the country.

4.11 OTHER INFORMATION:

1. TATA STEEL:
It is imperative that we keep pace with the growing needs of our customers, primarily those in
the Automotive and Construction sectors. We aim to deliver enhanced benefits through
customized services and solutions and value-added products throughout the customer’s purchase
journey. We are foraying into new lines of business to insulate ourselves from the cyclicality of
the steel industry through continuous development of solutions beyond steel such as Pravesh
Steel Doors and Windows, Ready Build cut and bend rebar solutions and Nest-In housing
solutions.
The key differentiator of our marketing strategy has been our ability to develop and sustain
relationships with our customers and channel partners, while managing a countrywide
distribution network.

Tata Steel’s Value Analysis and Value Engineering (VAVE) initiative is supporting our
automotive customers’ growing requirements for cost-effective and lightweight solutions to
reduce fuel consumption.They are capitalizing on these opportunities by ramping up volumes
and developing high-end products at our Kalinganagar plant and through our joint venture with
Jamshedpur Continuous Annealing & Processing Company Private Limited (JCAPCPL). They
have entered new market segments such as Oil and Gas, Lifting and Excavation (L&E) and Pre-
engineered Building and also consolidated our market share in our existing product portfolio of
automotive.
They continue to strive for superior quality offerings with our flagship brands in the Construction
segment, such as Tata Tiscon and Tata Shaktee. They have also been able to meet the needs of
Small and Medium Enterprises (SMEs) with our tailor-made offerings through our Emerging
Corporate Accounts (ECA) brands.

2. SAIL:
SALES FORCE MANAGEMENT
The Company’s sales turnover recorded an improvement of around 14% in FY17 and stood at Rs
49,180 Crore compared to Rs 43,294 Crore over CPLY. SAIL recorded the best ever sales
performance, for any given year, during FY 17 with a growth of 8% over CPLY. The total sales
stood at 13.11 Million Tonnes (MT) in FY17 as compared to 12.12 MT in FY16. On the
production front as well, the Company recorded a growth of 12% in saleable steel production for
FY17 over FY16. The techno-economic parameters showed improvement in FY17 of 3% in
Coke rate and 6% in BF productivity over CPLY. The Profit After Tax (PAT) narrowed to Rs (-)
2,833 Crore, an improvement of 30%, over CPLY which stood at Rs (-) 4,021 Crore in FY16.

MAJOR UNIT
SAIL Integrated Steel Plants

1. Rourkela Steel Plant (RSP) in Odisha set up with German collaboration (The first


integrated steel plant in the Public Sector in India, 1959)
2. Bhilai Steel Plant (BSP) in Chhattisgarh set up with Soviet collaboration (1959)
3. Durgapur Steel Plant (DSP) at Durgapur, West Bengal set up with British collaboration
(1965)
4. Bokaro Steel Plant (BSL) in Jharkhand (1965) set up with Soviet collaboration (The Plant
is hailed as the country's first Swadeshi steel plant, built with maximum indigenous
content in terms of equipment, material and know-how)
5. IISCO Steel Plant (ISP) at Burnpur in Asansol, West Bengal (Plant equipped with
Largest Blast Furnace of country, Modernized in 2015 with investment of 16000 crore
which will yield total production of 2.9 Million Ton annually )
Special Steel Plants

1. Alloy Steel Plant (ASP), Durgapur, West Bengal supplies to the Indian Ordnance


Factories
2. Salem Steel Plant (SSP), Maramangalathupatti, at Salem, Tamil Nadu
3. Visvesvaraya Iron and Steel Limited (VISL), at Bhadravathi, Karnataka
Ferro Alloy Plant

1. Chandrapur Ferro Alloy Plant (CFP) in Maharashtra


Refractory Plants - SAIL Refractory Unit (SRU)

1. SAIL Refractory Unit, Bhandaridah in Jharkhand


2. SAIL Refractory Unit, Bhilai in Chhattisgarh
3. SAIL Refractory Unit, IFICO, Ramgarh in Jharkhand
4. SAIL Refractory Unit, Ranchi Road in Jharkhand
Chapter 5: Human Resource Department
(HRM) / Personal department

5.1. Recruitment and selection process:


COMPANY PARICULAR
TATA STEEL 1.Short listing on the basis of percentage or CGPA aggregate in
graduation.
2.Written Exam.
3.Technical Interview. HR Interview.

JSW STEEL The selection procedure of JSW steel company is observed to


begin with a written test followed by a group discussion round then
comes the technical interview round followed by the HR interview
round. The written test consists of Aptitude and the domain
section. The domain section is nothing but the technical section.

SAIL The candidates will have to undergo a Walk-in-Interview followed


by a medical screening. Engagement as GDMO will start
immediately after the selection of the candidate is completed and
orders are issued for engagement as GDMO.

5.2. Number of employees:


COMPANY TATA STEEL JSW STEEL SAIL

NUMBERS 32,364 12,599 64,628


5.3. Training methodology/approach:
COMPANY PARTICULAR
TATA STEEL
Coaching and Mentoring:
 Best in class executive coaches
 Leadership behaviour counselling

Class room training:


 General management program
 Tata Management training centre
 Training on corporate governance

JSW STEEL JSW endeavours to provide about 6 days (48


hours) of training per employee on an annual
basis.
... The participants are nominated for both in-
house and external, including overseas
training programmes.
Specific competencies to be developed are
identified for development during the annual
performance appraisal process
SAIL Sail have 10 days of training program where
they cover various approach which is
required for the job and various test are
conducted like technical training etc

5.4. Employee safety mechanism


COMPANY PARTICULAR
TATA STEEL Tata Steel’s safety and health responsibilities are driven by
commitment to zero harm to the people we work with and the
society at large Backed by a robust management system
framework and a sound safety governance structure, we
endeavour to achieve this objective.

At the deployment level, six long term safety strategic priorities


Build (safety) leadership capability at all levels, improve
competency and capability for hazard identification risk
management, contractor safety risk management, elimination of
road rail incidents, excellence in process safety management,
improving occupational health establishing industrial hygiene
are the focal points behind several initiatives in their Safety
Excellence Journey.
JSW STEEL Adoption of DuPont Process Safety Management System. The
initiative is a part of its safety excellence journey to transform
the safety culture of the organisation from a reactive to an
interdependent system.

To ensure best safety practices, all the manufacturing sites of


JSW Steel are certified to Occupational Health & Safety
Management System as per OHSAS 18001.

Safety has also been made a Key Performance Indicator for


managers to promote safety as a culture in the organization.

As part of this group initiative, all JSW employees, business


associates & contractors are required to comply with the newly
launched "10 JSW CRITICAL SAFETY RULES" and to further
explore and improve safety practices in and around the shop
floor.

Periodic safety trainings through 14 training modules and


mandatory use of Personal Protective Equipment (PPE)

Monthly apex safety meetings to review safety performance

Medical facilities and health insurance for all employees

Apart from this, we report our safety related incident to the Joint
Planning Committee (JPC) on a monthly basis. We also report
our occupational health & safety data to the World Steel
Association, of which we are also a member, and also disclose
this data publicly in our integrated report every year.
 
SAIL A multi-disciplinary safety Engineering Departments exists in
each of the steel plants and mines to look after their safety
needs. The emphasis is now on Systematic Approach to safety
Management. SSO is managing the secretariat of the Joint
Committee on Safety, Health & Environment in the steel
Industry (JCSSI), a bipartite forum which addresses steel plant
safety, health & environment issues with active involvement of
management and central & plant level trade unions and provides
guidelines to the member organizations like SAIL, TISCO,
RINL, HSCL, Dastur Co., etc., on promoting safety.
Occupational health and pollution control measures.
5.5. Specific HR Policies:
COMPANY PARTICULAR
TATA STEEL Tata Steel recognizes that its people are the primary source of its
competitiveness. productivity. It will aim at ensuring
transparency, fairness and equity in all its dealings with its
employees. Tata Steel shall strive continuously to foster a
climate of openness, mutual trust and teamwork.
JSW STEEL JSW aims to have a discrimination-free workplace and take a
“zero-tolerance” approach against sexual harassment. JSW
acknowledges that it is its legal responsibility to provide a safe
working environment for everyone, free from sexual harassment
and discrimination.
SAIL The Major areas considered by the system can be characterised
as
Safety Functions

Employees’ Leave Record Function

Contract Labour Cell (CLC)

5.6. Performance Appraisal process


COMPANY PARTICULAR
TATA STEEL 90degrees appraisal system or review is being followed in Tata
STEELi.e., feedback that comes from members of an employee’s
immediate work circle most often, 360-degreefeedback will include
direct feedback from an employee’s subordinates, peers, and
supervisor, as well as a self-evaluation. 360 Degree Feedback system
contains several common features\. Appropriate parties - peers,
supervisors, subordinates and customers, for instance complete
survey, questionnaires on an individual. 360-degree feedback is also
known as the multi-ratter feedback, whereby ratings are not given
just by the next manager up in the organizational hierarchy, but also
by peers and subordinates. Appropriates customer ratings are also
included, along with the element of self-appraisal. Once gathered in,
the assessment from the various quarters are compared with one
another and the results communicated to the manager concerned.
JSW STEEL The checklist consists of large number of statements concerning
employee behaviour rater check to include if the behaviour of
the employee is positive or negative to each statement.
Employee performance is rated on the basis of number of
positive checks.
SAIL Management by objectives Multi rater assessment (360 degree
feedback) Graphic rating scale, Behaviourally anchored rating scale
(BARS) Critical incidental appraisal Essay appraisal, Work standards
Checklist, Ranking methods , Forced choice rating.

5.8. Grievance handling procedure


COMPANY PARTICULAR
TATA STEEL If an employee has a grievance, he should meet his shift-in-charge or
equivalent and talk it over with him. In cases of appeal against punishments
excluding suspension, discharge or dismissal, the employee should meet his
General Foreman or equivalent. If necessary, h should obtain a copy of
Grievance Form-I.
JSW STEEL A stakeholder can make a written complaint through letter or e‐mail.

The Company maintains a stakeholder grievance register in which full detail 
of every written complaint is entered.
• A designated person in the CSO  office  shall  access  the  stakeholder 
grievances 
email ID on a daily basis to establish whether any new complaint has been l
odged or  not.

• The full detail of the  written  complaint  would  be  passed  to  the 
concerned  department.
• A  letter  or  mail  would  be  written  by  CSO  office  designated  person 
to  the 
stakeholder/s who has/have submitted the written complaint, acknowledging 
receipt  of the complaint.
SAIL The grievances in SAIL plants/units are dealt in 3 stages and employees are
given an opportunity at every stage to raise grievances relating to
irregularities, working conditions, transfers, leave, work assignments and
welfare amenities etc. Such issues are effectively settled through the time-
tested system of grievance management. However, majority of the
grievances are redressed informally in view of the participative nature of the
environment existing in the steel plants. The system is comprehensive,
simple and flexible and has proved effective in promoting harmonious
relationships between employees and management.
5.9. Strategic HRM
COMPANY PARTICULAR
TATA STEEL The code of conduct and fair business practices;
1.A fair and objective performance management system linked
to the performance of the businesses which identifies and
differentiates employees by performance level
2.Creation of a common pool of talented managers across Tata
Sons and the Tata Sons promoted entities with a view to
increasing their mobility through job rotation among the
entities;
3.Evolution of performance-based compensation packages
4.Build strategic partnerships with educational institutions.
5.Enhance company’s image and desirability amongst the
target engineering and management schools
6.Functional academies setup for functional skills
development; 8. Skill development of all Blue collared
workforce.
JSW STEEL It's Vision for Human Resources states - “Creating an exciting
workplace which inspires superior performance of people”.
JSW endeavours to be an “employer of choice”, by fostering
an environment of individual goal setting, continuous
improvement, awareness of health and safety and corporate
sustainability.
SAIL Improve the Performance Appraisal System Improvements in
Internal and external training and its effective utilization
Systematic career planning Periodic communication meeting at
various levels Retention of Talent
Chapter 6: Production / Operations Department
Chapter 7: Any Other Specific Departments
A. TATA STEEL:

Tata Consultancy Services


TCS is an IT services, consulting and business solutions organization that has been partnering
with many of the world’s largest businesses in their transformation journeys for the past fifty
years.

Tata Motors
With US$35 billion in revenues, Tata Motors is a leading global automobile manufacturer of
cars, utility vehicles, buses, trucks and defense vehicles

Tata Chemicals
Tata Chemicals is a science-led company with a portfolio that covers basic and specialty
chemistry products.

Tata Consumer Products


Tata Consumer Products is a focused consumer products company uniting the food and beverage
interests of the Tata group under one umbrella.

Titan
Titan is a leading player in the Jewellery, Watches and Eyewear categories with several
successful brands

Tata Capital
Tata Capital is a trusted, customer-centric, one-stop financial solutions partner catering to the
diverse needs of retail, corporate and institutional customers.

Tata Power
Tata Power is India's Largest Integrated Power Company, present across the entire power value
chain of conventional & renewable energy, power services and next-generation customer
solutions including solar rooftop and EV charging stations.
Tata Advanced Systems
Tata Advanced Systems Ltd. (TASL), set up in 2007, is Tata Group’s strategic entity in the
Aerospace & Defense industry.

The Indian Hotels Company


The Indian Hotels Company Limited (IHCL) and its subsidiaries bring together a group of
brands and businesses that offer a fusion of warm Indian hospitality and world-class service.

Tata Communications
Tata Communications is a digital ecosystem enabler that powers today’s fast-growing digital
economy.

B. JSW STEEL:

JSW Energy Ltd


JSW Energy has 5681 MW of operational generating capacity. In addition, it has power
generation projects at an early stage under development with a proposed combined installed
capacity of 8630 MW.

JSW Cement Ltd


JSW Cement is part of the diversified US$13 billion JSW Group. JSW Cement is India's
leading green cement company with current capacity of 14 MTPA across its manufacturing units
at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in
Odisha and Dolvi in Maharashtra. The company's subsidiary, Shiva Cement, is currently
investing over Rs. 1,500 crores in a 1.36 MTPA clinker unit project to be established in
Sundergarh district of Odisha.

JSW Ispat Steel


JSW Ispat Steel Ltd was set up as Nippon Denro Ispat Limited in May 1984 by founding
chairman Mr M L Mittal. The company have operations in iron, steel, mining, energy and
infrastructure. It has two integrated steel plants, located at Dolvi and Kalmeshwar in the state
of Maharashtra.

 JSW Holdings Ltd


 JSW Infrastructure & Logistics Ltd
 Vijaynagar Minerals Pvt. Ltd
 Jindal Praxair Oxygen Co. Ltd
 JSoft Solutions Ltd
 JSW Building Systems Ltd
 CIC Energy Corp
 JSW Sports

C. SAIL:

NSPCL (NTPC-SAIL Power Company Limited) is a joint venture of National Thermal


Power Corporation  and Steel Authority of India Limited  engaged in power generation
primarily to meet the captive power requirement of various steel plants of SAIL
throughout India. It is one of the institutional category III profit making Indian PSEs.

NTPC and SAIL joined forces in March 2001 and took over a captive power plant
(consisting of 2x60MW generators) located at the Durgapur Steel Plant and another (also
2x60 MW) at the Rourkela Steel Plant.
NTPC formed another joint venture company with SAIL on in March 2002 in the name of
Bhilai Electric Supply Company Ltd. (BESCL). BESCL took over a captive power plant
(comprising 2x 30 MW generators and one 14MW back-power turbo generator) located at
the Bhilai Steel Plant from SAIL. Effective 11 September 2006, BESCL became part of
NSPCL.
Chapter 8: Conclusion

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy