Value Chain Analysis of Tata Steel

Submitted by : GROUP NO. 5

Rajan Kumar Singh - PF2123-B124
Aditya Khalapure - PF2123-B085
MD Ahamadur Rahman - - PF2123-B061
Ananya Tripathi - PM2123-B162
Mayank Kumar - GM2123-B252
Prajwalit Nagdeve - PM2123-B210
Purvi Prakash - PF2123-B018
About the Company

 Established in 1907, It is one of Asia’s First

largest integrated private sector steel company
 Rank- 12 across world
 Lowest Cost for steel production
 It had over 9 MT of production in FY 2006
 Headquarters – Mumbai , Maharashtra
 181.22cr revenue for FY 2021
 It has about 32000 employees
 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 Model
 Why Value chain Analysis?
 The value chain is the set of all the activities an organization performs to
create margin.
 It can help one understand the activities within the business that create
value. From this, we can
• Invest more
• Eliminate
• It helps to improve the margin
 Tata Steel (Value Chain) Primary
 Tata Steel is an integrated company with captive mines of iron ore
INBOUND LOGISTICS
and collieries located in Jamshedpur and Kalinga Nagar
 Inbound supplies and imported raw materials sourced from
throughout the world, with three major ports serving as gateways:
Dharma, Paradip, and Haldia
 Collaborate with the Indian Railways

 TATA Steel uses a blast furnace to create its steel

 supporting operations, such as coke production, sintering, and
palletization are processed
 Their rolling mills enable them to produce a wide range of
products OPERATIONS

SERVICES
 Suppliers
 Tata Steel (Value Chain) Primary
 consists of a network of warehouses and Steel Processing
OUTBOUND LOGISTICS
Centers (SPCs)
 Via a network of 6 hubs and 18 stockyards strategically located
across India
 The output volumes of 34 product categories from 49 industrial
facilities are predominantly transported by Indian Railways and
trailers over distances ranging from 15 KM to over 2,300 KM.

 Tata Steel is a key player in B2B (or Business to Business)

transactions
 It Brand its products in such a way that clients are well-informed
about them
 Tata Steel's primary marketing techniques were posters and
outdoor advertising MARKETING & SALES
 TV commercials were used to deliver messages to delighted
customers
 Tata Steel (Value Chain) Secondary

PROCUREMEN
T
 The Procurement Division of Tata Steel has a critical role in realizing
the department's quest for manufacturing & service excellence by
relentlessly focusing and contributing in cost management, Focusing
and contributing in cost management
 Ensuring product and service quality, superiority, and speed
 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
 Tata Steel (Value Chain) Secondary

PROCUREME
NT
BUILDING BLOCKS OF RESPONSIBLE PROCUREMENT

Health & Safety

Local
Community Environment
Development

Fair Business
Human Rights
Practices
 Tata Steel (Value Chain) Secondary

HUMAN
RESOURCES
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

TALENT
TRAINING & MANAGEMENT & LEADERSHIP
RECRUITMENT
DEVELOPMENT CAREER DEVELOPMENT
PLANNING
 Tata Steel (Value Chain) Secondary

HUMAN
RESOURCES
RECRUITMENT  best of talent and the engagement of its employees is an asset
through both high and low demand cycles in the industry
 The Group has continued the recruitment of apprentices,
graduates and targeted external middle and senior management
staff to meet the current need

TRAINING & DEVELOPMENT

 The Group has continued to invest in and improve its managerial and technical
capabilities through the internal development
 ‘Directed Learning Initiatives’ was introduced in Tata Steel
 a greater focus was assigned to the ‘On-the-Job Learning’ for executives
 Tata Steel (Value Chain) Secondary

HUMAN
RESOURCES
LEADERSHIP DEVELOPMENT

 The Executive Committee owns the development and succession plans for the top positions
 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

TALENT MANAGEMENT & CAREER PLANNING

 cross pollination of ideas between Tata Steel India, Tata Steel Europe, NatSteel and Tata Steel
Thailand
 The Management Trainee Program has been re-designed to include special modules of six
months
 Tata Steel (Value Chain) Secondary

INFRASTRUCTU
RE
 Technology Development

• Technological advancement is the key to new product development and product

differentiation.
• Fully integrated operations – from mining to finished steel production – enables to
deliver superior value proposition.
• The company focus on creating a culture for breakthrough innovation.
• This year, the Tata Steel Jamshedpur plant was recognized as part of the World
Economic Forum (WEF) Global Lighthouse Network, in addition to our IJmuiden
and Kalinga Nagar plants.
• Going forward, it will focus on six areas of technology leadership: utilizing low-
quality raw material; coatings of the future; mobility; carbon capture and usage;
hydrogen and water.
 Conclusion

• The concept of value chain analysis helps business managers to better identify useful
and wasteful activities.
• It helps in the understanding of a company's margin creation, which is the first step
towards boosting margin.
• By looking beyond standard means of efficiency analysis while also seeking to
integrate and capture value chain analysis in business metrics, stakeholders can make
important insights related to operational processes.
• It also allows to improve communication between departments.
• value chain analysis is a broader concept as compared to SWOT analysis.