Background of TATA Steel:

The origins and ascent of Tata Steel, emerge from the illustrious efforts of India's
original iron man and the remarkable people who thereafter, have kept the fire
burning. The story of Tata Steel is a century old. And so is the story of steel in India.
Etched with the visions and hardships of a single man, the story has flowed through
ages to re-define steel in every way. The saga, which started in 1907, completed a
century of trust in 2007 and carries on. Over the years this one company has
discovered different avenues of effective steel utilisation.

As India was left slightly overwhelmed in the wake of the Industrial Revolution in
England the leading Indian intellectuals of the 19th century believed that if India were
to keep pace with the world it would have to master the modern scientific methods of
the West. It was this vision of constructive change that led Jamsetji Nusserwanji Tata
to embark on a journey of growth that paved the path for industrialisation in India.
Within his lifetime, Jamsetji was to witness the birth of a revolutionary Indian
nationalism that would assist in the emergence of independent India, the spirit of
which could already be felt when he died in 1904.

In his lifetime J.N.Tata was captivated and led by the three guiding stars - building an
iron and steel company, generating hydro-electric power and creating an institution
that offers the best education in science.
Jamsetji Tata had started his quest for steel way back in 1882 but it was twenty-five
years later, in December 1907 that the explorers found their way to Sakchi - at the
confluence of the rivers Subarnarekha and Kharkai. On 27th February 1908 when
the first stake was driven into the soil of Sakchi the dream had come alive.
When Tatas issued shares on 26th August 1907, for the first time in the financial
history of the country, the Indian people - the masses, the affluent and the common
people -joined hands to put up the first truly Indian enterprise. The Tata family
contributed the remaining 11% shares of the Tata Iron and Steel Company Limited.
It did not take long for work to begin thereafter. In 1908 the plant became functional
and the next year, in 1909 the blast furnaces, steel furnaces, coke ovens,
powerhouse and machine shops were laid down. Land for the site, mines and
quarries were acquired in 1910. The Government contributed their bit by connecting
the railway to Gorumahisani. The first steel ingot was rolled on 16th February 1912 -
a momentous day in the history of industrial India.
The Steel Company obtained its first colliery in 1910, adding six more in course of
time. Several mines were spread over the states of Bihar, Orissa and Karnataka. The
Tatas soon became the first to own a fully mechanised iron ore mine in India at
Noamundi. The Coal Beneficiation Plant at West Bokaro undertook beneficiation of
low-grade coal, thus helping in the conservation of the fast dwindling resources of
high-quality coal. It is one of Asia’s First largest integrated private sector steel
companies.it’s Rank is 12 across world Lowest Cost for steel production .It had over
9 MT of production in FY 2006. It’s Headquarters is in Mumbai , Maharashtra
181.22cr revenue for FY 2021. It has about 32000 employees . TATA steel is also
known as TISCO – Tata Iron and Steel Company Limited.

Tata Steel Business Units

Apart from the Main steel division, Tata Steel operations are grouped under the following
strategic business units:

● Agriculture
● Automotive Steels
● Construction
● Consumer Goods
● Energy and Power
● Engineering
● Material Handling

Porter’s value Chain

A value chain is a set of activities that an organisation carries out to create value for
its customers. Porter proposed a general-purpose value chain that companies can
use to examine all of their activities, and see how they're connected. The way in
which value chain activities are performed determines costs and affects profits, so
this tool can help you understand the sources of value for your organisation.
Understanding how a company creates value, and looking for ways to add more
value, are critical elements in developing a competitive strategy.

Value Chain Analysis

Value chain analysis is a means of evaluating each of the activities in a company’s value
chain to understand where opportunities for improvement lie. Conducting a value chain
analysis prompts you to consider how each step adds or subtracts value from your final
product or service. This, in turn, can help you realise some form of competitive advantage,
such as:

● Cost reduction- by making each activity in the value chain more efficient and,
therefore, less expensive
● Product differentiation- by investing more time and resources into activities like
research and development, design, or marketing that can help your product stand
out.
● Focus: doing each strategy according to each market segment.
 ● The set of all the activities an organisation performs to create margin.
● We can use this information in the future to invest better and eliminate
redundant elements.

Where,
Value Created- Cost of creating
value= Margin.

TATA STEEL's Value Chain Analysis

According to the Value Chain concept, there are two types of activities: Primary
Activities and Supporting Activities.

Primary Activities

INBOUND LOGISTICS

TATA Steel ,India’s most integrated steel company with captive mines of iron ore and
collieries located around our manufacturing facilities in Jamshedpur and
Kalinganagar. TATA Steel follows the highest standards of environmental
management in our mining locations and uses advanced technologies for our mining
operations.
TATA Steel has been strategically situated for inbound supplies and imported raw
materials sourced from throughout the world, with three major ports serving as
gateways: Dhamra, Paradip, and Haldia (approx. 350 km, 400 km and 250 km from
Jamshedpur, respectively).
They collaborate with the Indian Railways for dedicated transit of raw materials from
mines and ports to their production facilities, with a focus on efficient logistics.
Inbound logistics supports the continuous supply of roughly 40 MnTPA of raw
materials through railway waggons from ports and captive mines, assuring quality
and economic efficiency. A network of conveyor belts transports raw materials
throughout the Works, while solid waste is transferred by road.
OPERATIONS

TATA Steel uses a blast furnace to create its steel. Various supporting operations,
such as coke production, sintering, and pelletisation, turn the raw materials into hot
metal and crude steel. These processes are designed to provide high productivity
while managing slag rate and steelmaking requirements with the resources
available.
Their rolling mills enable them to produce a wide range of products with bespoke
forms, sizes, and chemical and technical qualities. Their products are subjected to
rigorous quality control and assurance methods to meet customer specifications and
expectations. They make a variety of retail-oriented products and offer customised
solutions to their industrial clients.

OUTBOUND LOGISTICS

Outbound logistics, which consists of a network of warehouses and Steel Processing

Centres (SPCs), ensures prompt delivery and transportation of finished products to
satisfy customers' on-time delivery expectations via a network of 6 hubs and 18
stockyards strategically located across India. As a result, delivery times from the
stockyards might be as short as 48 hours. The output volumes of 34 product
categories from 49 industrial facilities are predominantly transported by Indian
Railways and trailers over distances ranging from 15 kilometres to over 2,300
kilometres.

MARKETING & SALES

Tata Steel is a key player in B2B (or Business to Business) transactions. It doesn't
have any way of communicating with customers. Tata Steel has been branding its
products in such a way that clients are well-informed about them. It has begun
running advertising in which it hopes to pacify its customers.
#Apno_Ke_Liye_Badoo, for example, focused on the feelings of its clients and
attempted to express thanks to the Covid-19 Warriors. Another noteworthy example
is their marketing, which included taglines like "Customer First-Har Haal mein." Tata
Steel's primary marketing techniques were posters and outdoor advertising. TV
commercials were used to deliver messages to delighted customers.

SERVICES

Suppliers must commit to providing high-quality products and services that fulfil all
applicable standards. The products and services provided must conform with all
applicable regulations, including product packaging, labelling, and after-sales service
requirements. The Supplier must sell its products and services on their own merits
and refrain from making false or misleading representations regarding competitors'
products and services.

Secondary Activities

Tata Steel took a step which places it at the forefront of lower-carbon steel innovation
by acquiring the full intellectual property rights in a revolutionary technology.
The company has been testing the groundbreaking technology called HIsarna at its
IJmuiden steelworks in the Netherlands. HIsarna has the potential to reduce energy
use and carbon emissions by at least 20%, as well as reducing steelmaking costs
through lower-priced raw materials, up to half of which could be recycled scrap steel.
HIsarna is a completely new technology in the steelmaking process which combines
Tata Steel’s cyclone converter furnace with Rio Tinto’s smelter. Now, Tata Steel has
acquired Rio Tinto’s smelter technology and intellectual property rights required to
operate the HIsarna process.
HIsarna consists of a reactor into which iron ore is inserted at the top. The ore is
liquefied in a high-temperature cyclone and drips to the bottom of the reactor. When
powdered coal is injected into the reactor, it combines with the molten ore to produce
pure liquid iron and carbon dioxide
The technology removes a number of pre-processing steps, resulting in significant
efficiency gains and 20% reductions in energy use and Carbon Dioxide emissions.
The HIsarna installation produces almost pure Carbon Dioxide , making the gas
ideally suited for capture and either storage or use, which could lead to total Carbon
Dioxide savings of 80% from the steel production process. It could also lead to
substantial reductions in emissions of fine particles and the reduction of sulphur
dioxide and nitrogen oxide.
Apart from being essential to modern society, steel is sustainable because it is
permanent. Steel products can last a lifetime, after which they can be reused,
remanufactured or recycled to create new products. This means steel is used, never
consumed, and explains why steel is the most recycled material in the world. Steel
production is a long-term investment which offers enormous Carbon Dioxide
efficiencies over its full life cycle.

PROCUREMENT

The Procurement Division of Tata Steel has a critical role in realising the
department's quest for manufacturing & service excellence by relentlessly focusing
and contributing in cost management, ensuring product and service quality,
superiority, and speed in the overall delivery process.
TATA Procurement Division works towards effective containment of the prices by
taking alternate sourcing routes like raw material conversion, consolidation of buy to
generate economies of scale, tier II sourcing, introduction of total management
contract concepts - these being some of the initiatives amongst many others that are
being conceptualised, designed and implemented by the division.

VISION

The Procurement Division commits to offering world-class, cost-economic services to

all its stakeholders, through innovation, continuous improvement in procurement
practices, value creating partnerships, logistical know-how, and innovative HR
initiatives and by leveraging Information Technology.
We endeavour to empower communities, uphold safety and health standards, and
protect the environment while we deliver progressive profitable growth through fair
business practices. Following actions help us achieve them in our Procurement
division:

ACTION AFFIRMATIVE POLICY

In accordance with our Affirmative Action Policy, we encourage business

entrepreneurs from socially disadvantaged communities and include them in our
supply chain on the basis of equal merit. We have leveraged our growth projects to
diversify our workforce in a way that favours local, marginalised communities and
women. Also, we choose organisations aligned to our Affirmative Action Policy as
our Strategic Sourcing partners.

BUILDING BLOCKS OF RESPONSIBLE PROCUREMENT

Health & Safety:

We expect our suppliers to adopt management practices in Health &

Safety which provides a high level of safeguards to their workers.

Environment:

We require suppliers to maintain effective policies, processes and

procedures to manage their environmental impact.
Human Rights:

We expect our suppliers to develop and implement policies and

procedures to ensure all human rights in their business and to
encourage their suppliers to do likewise.

Fair Business Practices:

Policy outlines the fair business practices by which Tata Steel conducts
business and we expect our suppliers to adopt similar principles.

Local Community Development:

We expect our suppliers to contribute to the social, economic and

institutional development of the communities in which they operate.

HUMAN RESOURCE PLANNING

Tata Steel is one of the world’s most geographically diversified steel producers, with
operations in 26 countries and a commercial presence in some 50 countries.
It employs more than 81000+ employees working globally.

RECRUITMENT

• Through 2008-2009, the Tata Steel Group has continued to demonstrate that the
recruitment of the best of talent and the engagement of its employees is an asset
through both high and low demand cycles in the industry.
• The Tata Steel Management Trainee Program and the Corus Graduate Program
continue to attract and offer exciting career options to young engineers who are from
amongst the best colleges of the country. The Group has continued the recruitment
of apprentices, graduates and targeted external middle and senior management staff
to meet the current need and prepare the bench strength for future operations.
TRAINING & DEVELOPMENT

• The Group has continued to invest in and improve its managerial and technical
capabilities through the internal development of its own employees across Europe,
India and SouthEast Asia.
• To bridge functional skill gaps and to identify candidates for focused learning in line
with the current and future needs of Tata Steel, a scheme called ‘Directed Learning
Initiatives’ was introduced in Tata Steel. The emphasis was to create a pool of
experts in different technical areas. Apart from creating specialists, the policy also
focuses on managerial learning which consists of modular programs with tie-ups with
various management institutes.
• With a view to augment the technical capabilities of the employees, a pilot program
in line with the Technical Competency Assessment System was introduced in Tata
Steel. Based on the results, the learning from the program will be introduced to the
rest of the organisation.
• The Performance Improvement Committee has continued to focus on improving
both knowledge management and the adoption of best practices across the Tata
Steel Group. This has benefitted TSE alongside the other operations of Tata Steel,
NatSteel and Tata Steel Thailand.
• During the year, a greater focus was assigned to the ‘On-the-Job Learning’ for
executives. This is being offered through cross functional assignment/taskforce, role
enhancement/enrichment and improvement Initiatives. The executives were also
encouraged to undertake special projects arising from their work assignments which
had focused measures and deliverables.

TALENT MANAGEMENT & CAREER PLANNING

• As part of the global talent management initiatives, the year saw a greater
movement of executives between Tata Steel India, Tata Steel Europe, NatSteel and
Tata Steel Thailand to enable the cross pollination of ideas and practices and provide
executives with a global experience. The Management Trainee Program has been
re-designed to include special modules of six months each in the areas of TQM,
engineering and projects, and safety. This will help the fresh graduate engineers
prepare in a better way for future assignments.

LEADERSHIP DEVELOPMENT

• Leadership Development across all levels continues to be the focus across the
Tata Steel Group. The Executive Committee owns the development and succession
plans for the top positions. With regards to the next level of officers, this is done by
the respective talent review committees. During the year, the Company continued to
support and send senior executives to world-class leadership development programs
at some of the world’s leading management development institutes.
 • A Global Leadership Development Program was also initiated with the objective of
shaping future Tata Steel Group leaders across the globe. This was done to convey
to the would be leaders, what it means to be part of the Tata Group, to build a shared
understanding of what needs to be done to be recognized as outstanding in the steel
industry and to create an understanding of what inspiring leadership within the Group
needs to be like

INFRASTRUCTURE

Firm infrastructure support activities at Tata Steel consists of activities such as –

quality management, planning, general management, finance and accounting and
legal services.
Firm infrastructure activities at Tata Steel supports the entire value chain though the
scope varies given that Tata Steel is a diversified company even within the industry.
For example the finance and planning at Tata Steel are managed at corporate level
while quality management, accounting and legal issues are managed at the business
unit level.