Resources and Capabilities: Indian Operations

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RESOURCES AND CAPABILITIES

Operations in 26 countries. Commercial presence in over 50 countries. 80,000 employees


across five continents. What sets the Tata Steel Group apart is not just extent or magnitude of
its operations - it is the excellence of its people, innovative approach, and overall conduct.
Established in 1907 as Asia's first integrated private sector steel company, Tata Steel Group is
among the top-ten global steel companies with an annual crude steel capacity of nearly 30
million tonnes per annum. It is now the world's second-most geographically-diversified steel
producer. The Group recorded a turnover of Rs. 139,504 crores in FY 15.

Over the years Tata Steel has enriched the glorious legacy handed over by its Founder J.N.
Tata, by placing equal emphasis on stakeholder value creation and corporate citizenship.
Underpinning this vision is a performance culture committed to aspiration targets, safety and
social responsibility, continuous improvement, openness and transparency. What binds
together every member of the global Tata Steel family today is a shared corporate culture,
shaped by value-based guiding principles and the lineage of some of the worlds most
pioneering and respected entities - the Tata group itself, British Steel, Koninklijke Hoogovens
and NatSteel.

Indian Operations

Tata Steel founded Indias first industrial city, now Jamshedpur, where it established

Indias first integrated steel plant in 1907. The Jamshedpur Works currently comprises of a
9.7 MTPA crude steel production facility and a variety of finishing mills. Mines and collieries
in India give the Company a distinct advantage in raw material sourcing. Looking further into
the future, the company plans to continue to increase its capacity significantly through both
brownfield and greenfield developments. The first phase of the 6 million tonnes per annum
greenfield project in Kalinganagar, with stage-wise commissioning expected to start in
Financial Year 2015-16. The Company is focussed not only on the execution of the plant
facilities but also on addressing the socio-economic infrastructure needs of an industrial
enterprise of this scale. The Company has plans for two new Greenfield steel projects in the
states of Jharkhand and Chhattisgarh.
European Operations

Tata Steel Europe (erstwhile Corus) has a crude steel production capacity of 18
mtpa. Tata Steel Europe has manufacturing operations in Mainland Europe, plants in UK,

Netherlands, Germany, France and Belgium, and is backed by a sophisticated global network
of sales offices and service centres.
South East Asian Operations

Tata Steel started its operations in SEA in 2004 with investments in NatSteel
Holdings and Millennium Steel (now Tata Steel Thailand). With over 40 years of Steel
making experience, NatSteel is one of the most prominent steel producers in the Asia Pacific
region. It caters to the growing construction industry through its manufacturing presence in
Singapore, Thailand, China, Malaysia, Vietnam and Australia.

SWOT Analysis of Tata Steel


1.
o

Strengths of Tata Steel


Tata Steel is the pioneer of steel business in India and thus enjoys brand
equity. Tata Steel has a multiple companies under the same banner, which gives it an
advantage of value-chain efficiency, whereby the company can utilize products made in
its sister companies to process raw materials and increase efficiency.

Weaknesses of Tata Steel


o

The biggest weakness of Tata Steel is its increasing debt-to-equity ratio.


Most of its assets are financed by debt, which can be dangerous in the long-run. Tata
Steel largely depends on domestic and a few international markets for generating
business. This over-dependence can prove to be fatal in times of economic crisis.

Opportunities for Tata Steel


o

Tata Steel is branching out to overseas market. The company has recently
signed a deal with Corus group, which provides access to European markets. Tata Steel
will now be in a position to utilize the R&D facility and the patents owned by the Corus
group. Exposure to new technologies and markets is a big advantage for the company.

Threats to Tata Steel


o

In the current scenario, the biggest threat for Tata Steel is to maintain the
Co2 emission standards when it starts its operations in Europe. The sudden overseas
exposure along with a possible economic slowdown is the biggest challenge faced by Tata
Steel in the present circumstances.

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