Post on 03-Jun-2018
8/12/2019 A Project Report on EM
1/48
1
Born: 3 March 1839
Died: 19 May 1904
JAMSHEDJI TATA
8/12/2019 A Project Report on EM
2/48
2
1.INTRODUCTIONContribution in the development of Indias economic growth:
The Indian steel industry is more than 100 years old now.
The first steel ingot was rolled on 16th February 1912 - a momentous
day in the history of industrial India. Steel is crucial to the development of
any modern economy and is considered to be the backbone of the human
civilization. The level of per capita consumption of steel is treated as
one of the important indicators of socio-economic development and
living standard of the people in any country. It is a product of a large
and technologically complex industry having strong forward
and backward linkages in terms of material flow and income gener ation.
All major industrial economies are characterized by the existence of a
strong steel industry and the growth of many of these economies has
been largely shaped by the strength of their steel industr ies in their initial
stages of development India is the 7th Largest steel producer in the world,
employing over 1/2 million people directly with a cumulative capital
investment of around Rs.1 lakh crore. It is a core sector essential for
economic and social development of the country and crucial for its
defense. The Indian iron and steel industry contributes about Rs.8,000 crore to
8/12/2019 A Project Report on EM
3/48
8/12/2019 A Project Report on EM
4/48
4
growth . And i t i s g rowing f rom s t r eng th to s t r eng th wi th
ne wer developments Bot h wit hin st eel mak ing pra cti ce as wel l as
eng ineer ing deve lopments , which ask fo r more usage o f s t ee l .
So mu ch so , tha t ec onomi c de velo pmen t has bec ome almost
synonymous with steel.
8/12/2019 A Project Report on EM
5/48
5
2.Major Happening Political:
In the 1920s and 1930s , when i t was s t i l l ca l l ed Ta ta I ron and
St ee l Co mp an y, TI SC O' s largely tribal workers fought pitched battles
with the European or Parsi management. Work conditions and the right
to organize were important rallying issues, and over the years, the
company developed a reputation for union-busting, often by violent means. The
value of Dorabjis Expansion Programmed came to be appreciated only
during the phase when world was reeling under the pressure of the Great
Depression. The Tatas survived the depression and supplied nearly
of the countrys steel requirements. By the Second World War, Tata s
p roduc t ion capac i t i e s had expanded enough to make th e i r p r i ces
lower than those of steel produced in England raising them to an authoritarian
position. By the 1980s , th e gov ernme nt was c l ear l y in con t ro l o f
wha t had come to be ca l l ed the commanding he igh t s o f
economy. More than 45% of ou tpu t in o rgan ized indus t ry came
from the public sector as well as bank and other long-lending institution. In 1981-
82, eight of the largest firms in India were in the public sector, as were
24 out of the top 30 in terms of total capital employee. In this sense it
8/12/2019 A Project Report on EM
6/48
8/12/2019 A Project Report on EM
7/48
7
Tata Iron & Steel Company Rajiv Gandhi- Both internal & external
f ina nce s hort ages were wors enin g. T rade def i ci t increased from 10
bil lion in 1983 -84 to Rs. 34 bill ion in 1985-86 so it became difficul t to
repay loan.
Economic:
TATA Steel, formerly Tata Iron and Steel Company Ltd (Tisco), the company
around which the enti re township of Jamshedpur was built, was registered
in Bombay (now Mumbai) on August 26, 1907. It had an initial capacity
of 160,000 tones of pig iron, 100,000 tones of in go t st ee l, 70 ,0 00
tones o f r a i l s , beams and shapes and 20 ,000 tones o f ba r s , hoops
androids. It also had a powerhouse, auxiliary facilities and a laboratory.
I t was in 1955 that Tata Steel beg an i ts two mil l ion - ton e expa nsi on
p rogrammed th e la rges t p ro jec t in th e p r iv ate sec tor at that time.
The project was completed in December 1958. Beginning in the 1980s,
the company undertook in various phases an ambitious modernization
8/12/2019 A Project Report on EM
8/48
8
programmed. The fi rst phase, be tween 1981 and 1985 , involved a total
pro ject cost of Rs .223 crores . This phase, among other things , saw the
installation of two 130 tone LD converters, two 250 tone a day oxygen
plants, a bar forging machine, two vert ical twin-shaft lime kilns and a
tar-dolo brick plant. Significantly, a six-strand billet caster and a 130-
tone vacuum arc refining unit were installed, that too in the integrated steel
plant. The second phase (1985-1992), involving a pro ject cos t of Rs .780
crores, saw for the first t ime in India coal injection in blast
furnaces and coke oven bat tery wi th 54 ovens us ing s tamp-
charging technology. Apart from this, a 0.3 mtpa (million tone per
annum) wire rod mill, a 2.5 mtpa sinter plant, a bedding and blending
plant and a waste recycling plant of 1mtpa were installed.
(2) The cost of the third phase (1992-1996) of the project was a
whopping Rs.3,600 crores, and that of the fourth phase (1996-2000)
Rs.1,300 crores. The company recently commissioned its 1.2 mt
(million tone) capacity Cold Rolling Mill Complex at a project cost of
Rs.1,600crores. This four-phase modernization programmed has enabled
Tata Steel to be equipped with the most modern steel-making facilities in the
world. As of today, the Tata Steel facility has a hot metal capacity of 3.8 mtpa and
a crude steel capacity of 3.5 mtpa, corresponding to
8/12/2019 A Project Report on EM
9/48
9
a s a l a b l e s t e e l c a p a c i t y o f 3 . 4 m t p a . T a t a S t e e l h a s
b e e n i n t h e f o r e f r o n t o f I n d i a s industrialization and an engine
of growth. It is part of Tata Group, a prestigious, family-owned Indian
multinational with 2005 revenues of $17.8 billion, the equivalent
of about 2.8% of India's GDP. Tata Steel's acquisition of Corus was a marriage
made in heaven. Tata acquired Corus, which is 4 times larger than its size
and the largest steel producer in U.K. The deal, which creates the
wor ld s f i f th l a rges t s t ee lmaker , i s Ind ia s l a rges t ever foreign
takeover and follow Mittal steels $31 billion acquisition of rival
Arcelor in same year. Tata acquires corus on April 2007 for a price of
$12 billion. The price per share was 608 pence, which is 33.6% higher the
first offer which was 455 pence. For the fiscal year ended March 2006, the
company generated revenues of $3,693.6million (IR17,144.22 Crores), an
increase of 0.1% over the previous fiscal year. The company saw a net income
of $755 .4 mi l l ion ( IR3 ,506 .38 Crores ) ,
an inc reas e o f 8% over f isc al 2 005 months
8/12/2019 A Project Report on EM
10/48
10
Social:
Social responsiveness became integral to organizational objectives of Tata Steel,
even before the company was established in 1907. In 1970, however, Tata Steel
formally incorporated its commitment to the stakeholder concerns ,
including those of the nation, and environment, in its Articles of
Association. The Company shall have among its objectives the
promotion and growth of the national economy through increased
productivi ty, effective uti li zation
of mate r i a l s and manpower r esources and con t inued app l i ca t ion
of mod er n sc ie nt if ic an dmanagerial techniques in keeping with the
national aspirations, and the Company shall be mindful of its social and
moral responsibilities to the consumers, employees, shareholders, society
and the local community.
F o r J a m s e t j i T a t a , t h e p r o g r e s s o f e n t e r p r i s e , w e l f a r e o f
p e o p l e a n d t h e h e a l t h o f t h e enterprise were inext ricably linked .
Wealth and the generation of wealth have never "been ends in themselves,
but a means to an end, for the increased prosperity of India. Tata Steels efforts
at environment management are well recognized. Its Steel Works in
Jamshedpur , a l l i t s mines , co l l i e r i e s and manufac tu r ing
8/12/2019 A Project Report on EM
11/48
8/12/2019 A Project Report on EM
12/48
12
3.Various Policies of Tata Steel Quality Policy Safety Occupational Health and Environmental Policy Human Resource Policy Social Accountability Policy Corporate Social Responsibility Policy Drug & Alcohol Policy HIV+ & AIDS Control Policy Energy Policy
8/12/2019 A Project Report on EM
13/48
13
Towards organization:
Tata was the 1st company to amend i t s a r t i c l es o f a ssoc ia t ion
including the clause of social welfare.
Towards shareholders:
Equal participation, straight forward business policy.
Towards employees:
Pioneer o f P .F . scheme, f r ee medica l and workmens co rpora t ion
fund.
Towards Society:
India should not be a economic super power but a happy country.
Towards government:
Suggestions of economic reforms and high tax Payer Company.
8/12/2019 A Project Report on EM
14/48
14
Towards consumers:
Consumer is the king of market. Quality products & services timely
solutions of problems T a t a S t e e l i s a s i g n a t o r y t o t h e U n i t e d
N a t i o n s G l o b a l C o m p a c t , a n d a b i d e s b y i t s 9 principles that
address issues on Human Rights, Labor Rights and Environment, etc
Tata Iron & Steel Company
Plantation of 1 lakh trees in and around Mumbai in collaboration with
the National Society of the Friends of the Trees Special project with M/s
NEERI , in o rder to assess th e ca r ry ing capaci ty o f th e region and
to ensure sustainable development in the region.
Technology:
(5)Tata Steel has been fortunate to have leaders and a rich reservoir of
committed people who could see clearly through the future and
transformed the plant into a modern technological giant with the power
of their meticulous envisioning, strategy and planning, through several
modern iza t ion p rogrammes hav ing spen t more than Rs . 70000
mi ll io ns on en vi ro nm en t -friendly technologies since 1980.
8/12/2019 A Project Report on EM
15/48
15
Installation of a modern Cold Rolling Mill Complex, built at global
speed and cost, is not only the epitome of Tata Steels modernization
programme, but also remains a global benchmark in project management of its
kind. I t is also worthwhile to mention that the Company lost
d e a r l y f o r t h e i r d e c i s i o n o n t h e i n s t a l l a t i o n o f
E OF (EnergyOpt imiz ing Furnace) a t Jamshedpur Works , and CR
M (Cold Rolling Mill) at Gopalpur in Orrisa. The Tatas made a great
con t r ibu t ion in manpower deve lopment f i e ld too . F rom the
v er y beginning the Tatas invested substantial time, money and
resources in training schemes. In1921, the Jamshedpur Technical
Ins t i tu te was se t up wi th a purpose to replace fore ign technical
experts with their Indian counterparts. Furnished with super-
sophisticated labs, advanced training aids and other infrastructural facilities, the
Technical Training Institutes
inJ a m s h e d p u r i s t o d a y o n e o f t h e b e s t i n t h e c o u n t r y .
R e c e n t l y , a n e w M a n a g e m e n t Development C entre h as b een
bui lt at Dimna to impart advanced management training to middle and
senior level managers in the Company.
8/12/2019 A Project Report on EM
16/48
8/12/2019 A Project Report on EM
17/48
17
Tata S tee l s modern iza t ion p rogramme, bu t a l so r emains a
gl ob al benchmark in project management of its kind. Besides, the
Company has also completely revamped its information technology
in f ras t ruc tu re to su i t i t s modern ized p lan t . I t
sp en t c l o s e t o R s . 4 0 c r o r e s o n S A P i m p l e m e n t a t i o n a l
o n e . T a t a S t e e l s m o d e r n i z a t i o n programmers are detailed in the
section, Technology at its Best of the chapter, Imperatives of Change
Management.
8/12/2019 A Project Report on EM
18/48
18
Natural disaster:
Disaster Management & Relief
T a t a S t e e l h a s a l o n g h i s t o r y o f p r o v i d i n g r e l i e f d u r
i n g n a t u r a l c a l a m i t i e s . S o c i a l consc iousn ess runs deep
down to the l a s t employee o f the Company . Every employee
contributes to such causes, complemented by an equal, or more, amount
from the
Company.Besides , e mployees a lso volun teer to a dminis ter re l ief
operations and provide disaster management services to other agencies
involved.
8/12/2019 A Project Report on EM
19/48
19
Relief Operations
Tata Stee l s r e l i e f and r ehab i l i t a t ion p rogramme, l a rge ly
ex ec ute d by the Ta ta Rel ie f committee, is carefully planned
and time-tested to counter unforeseen devastation caused by floods,
drought and other natural calamities, serving both immediate and long-
term needs of those affected, by offering them food, medical aid,
rehabilitation, etc. It has even designed and constructed buildings that can
withstand natural calamities such as earthquakes.
I n d i a i s a d e v e l o p i n g c o u n t r y a n d i t s e c o n o m y i s g r o w i n g
v e r y f a s t . I n s t e a d o f t h i s economical growth there is need for
infrastructure to sustain this growth. The Government envisions India
becoming a developed nation by 2020 with a per capita GDP of
$154010.For a na t ion tha t i s economical ly s t rong, f ree of the
p rob lems o f underd eve lopment and p lays a mean ingfu l ro le in
the wor ld as be f i t s a na t ion o f over one b i l l ion peop le , the
groundwork would have to begin right now. The Indian steel industry will be
required and is willing to play a critical role in achieving this target. If the steel
indus t ry gear s up in abou t 3 to 4 year s , Ind ian s t ee l can be bo th
in In di an an d foreign markets. Steel industry has seen a sunrise after a
8/12/2019 A Project Report on EM
20/48
20
bad and cloudy night. Worries of financial institut ions are over and have
taken an exposure in this sector. Indian government as planned for
pump ing in a lo t o f mon ey in in f ras t ruc tu re in co m i ng yea rs ,
h ence s t ee l consumption will go up manifold.
GDP per capita to increase from USD 2500 and USD 5000 in 2020
Population growth rate of 1.3 - 1.5%
Continuously improving macro economic factors
A strong demographic profile: with a large consumer base
Growing urbanization
Stable social and political environment
8/12/2019 A Project Report on EM
21/48
21
5.FUTURE PROJECTSIndian Steel production likely to triple in next 15 years
National Steel Policy Projections
8/12/2019 A Project Report on EM
22/48
22
Globa l c rude s t ee l consumpt ion i s p ro jec ted to inc rease to
approximately1,730 mtpa by 2020, driven by developing countries, including
China.
W h i l e C h i n a i s b e c o m i n g t h e n e w s o u r c e o f d e m a n d ,
t h e d e v e l o p e d economies as a whole sti ll remain the largest port ion
of the worlds steel consumption.(Chart-3)
Positive demand fundamentals in development economics. (Chart-3)
Roads and power:
The existing road network needs to be expanded and s trengthened
considerably for reducing t r an s ac t i o n co s t s o f t h e I n d i an s t e e l
p r o d u c e r s . T h e s t e e l p l a n t s a n d m i n e s n e e d t o b e integra ted
with the on-going programmes of national highway development and
also with the proposed rural road schemes for expanding the delivery chain of
steel across the country, especially the rural areas. The additional
8/12/2019 A Project Report on EM
23/48
23
requirement of power for the steel industry would be 7000 MW by 2019-
2020, requiring an additional investment of Rs 24500 crore.
In order to achieve the goal of 110 million tones of steel production by
2019-20, the NSP seeks to remove the supply-side constraints to
the growth of this industry in an open, global ly integrated
and competitive environment. The country would need an investment in
the range of Rs.1 lakh to 1.2 lakh crore in creation of additional steel
capacities by 2011-12.Related areas like mining and power will require
an additional investment of Rs. 25,000
to3 0 , 0 0 0 c r o r e . F u r t h e r , t h e r e i s a n e e d t o r e t a i n f l e x i b i l i t
i e s i n t h e f i n a n c i a l s y s t e m t o e nc ou ra ge in no va ti on . T he re ar e
many areas of technolo gy develop ment and adopt ion , which can
be ri sky but al so highly rewarding. Venture cap italism needs to
be promoted at a greater pace for early adoption of emerging technologies.
8/12/2019 A Project Report on EM
24/48
8/12/2019 A Project Report on EM
25/48
25
have got the benefits from EXIM as tax relief. When Narendra Modi
b ecame th e Chie f Min is t e r th e s t ee l indus t ry has s t ar t ed g rowing
rapidly and the profit increased by Rs 9 to Rs. 13 per Kg. The existing regime
of liberalization, decontrol and deregulation of industry in the country
has opened up new oppor tun i t i e s fo r the expans ion o f the s t ee l
indus t ry . Wi th a v iew to acce le ra t ing the g rowth o f the s t ee l
sec to r and a t t a in ing the v i s ion o f Ind ia becoming a deve loped
economy by 2020 , the Min i s t ry o f S tee l fo rmula ted a National
Steel Policy (NSP)in 2005. The following are the salient features of the NSP :-
(1) The NSP set out a broad roadmap for the Indian Steel Industry in its
journey towards reform, restructuring and globalization.(2 ) The long - te rm
goa l o f the NSP i s tha t Ind ia shou ld have a modern and e f f i c i en t
steel industry of world standards, catering to diversified steel demand.
The focus of the policy is to achieve global competitiveness not only in terms
of cost, quality and product-mix but also in terms of global benchmarks of
efficiency and productivity. Government has a scheme for routing the
allocation of steel material from main producers like SAIL, RINL, and
TATA STEEL to SSI units, and other government departments (up to30% of the
total allocation) through the small scale industries corporation, SSICs
and also through National Steel Industry Corporation NSIC where SSICs are
8/12/2019 A Project Report on EM
26/48
26
either defunct or not
i n e x i s t e n c e . I n o r d e r t o e n s u r e t h a t s m a l l s c a l e i n d u s t r i e s
o b t a i n t h e s e ra w ma t e r i a l s as reasonable prices , the government
provided nominal handling charges of approximately Rs.500 per tone
to the corpora t ion so tha t the corpora t ion supp ly the s t ee l
material as the doorstep of the SSI units. Political compulsions were
the on ly r eason fo r s t ee l companies to cu t p r i ces . Otherwise ,
steel prices have been looking up quite some time now and there has
been good demand of s t ee l in domes t i c as wel l a s in t e rna t ional
mar ke ts . I ns te ad of pri ces goi ng up , th ey are declining. The
government had recently effected a 5% customs duty cut on non-alloy steel. Steel
prices to go up as Railways increases iron ore freight rates in a move that
may increase input cost for steel
Cos like Tata Steel, Essar, Jindal and Ispat Industries, Indian Railways
has decided to increase the freight rate of iron ore by around5%. The
decision would push up freight rates by about Rs 100-200 per tone
depending on the distance. The decision was taken to soothe the
inflationary pressure. The p rice of the ore comprises between 30% to
45% (depending on the kind of iron and steel) of the total price of steel.
Currently, the price of steel is around $750-900 per tone in the global
8/12/2019 A Project Report on EM
27/48
27
market. The government has been fighting inflation due to rise in prices of
various raw materials, iron ore being one of them. The Railways transported
53.59 million tone of iron ore for exports in2007-08
8/12/2019 A Project Report on EM
28/48
28
6.Implementation of the National Steel Policy (NSP), 2005:Tata Iron & Steel Company Freight equalization Scheme was withdrawn in
January, 1992. However, with the coming up of new steel plants in
d i f f e ren t pa r t s o f the coun t ry , i ron and s t ee l p roduc t s a re f r ee ly
available in the domestic market. Recent years have witnessed
unprecedented turmoil in the global steel market. The crisis in
the in te rna t iona l s t ee l marke t migh t be a t t r ibu ted to the misba la
nce between capacity, dema nd and p roduc t ion and cons eque nt d rop
in p r i ces . Throughou t the wor ld the re i s
a na p p a r e n t o v e r c a p a c i t y ( e s t i m a t e d t o b e b e t w e e n 1 0 0 M t
- 1 5 0 M t ) i n t h e s t e e l s e c t o r . According to the IISI, the companies have
been selling their products below costs to survive in global competition. Since
2001, while growth has been negative in most mature markets, Asia
has maintained steady growth rate. The Asian production growth has
mainly been driven by the surge in steel demand and production in China.
The huge Chinese appetite for steel has led the 10.2%surge in output. The
growth in Chinese steel demand, generated mainly by demand from
infrastructure sector is a beacon for Indian steel since both the nations
are comparable on many counts.
8/12/2019 A Project Report on EM
29/48
29
(C)
The Indian steel manufacturers are faced with some major problems and
concerns, which work as inhibi t ing factors to their effor t towards
gaining the competit ive edge. A few of these are:
Unremunerative Prices:
Stagnating demand, domestic oversupply and falling prices in the last
few years have hit Indian steel makers. Barring the sporadic rise in demand in the
recent months, it has suffered from unremunerative prices to the extent
that companies have been finding it difficult to maintain capital costs.
Stagnating Demand for Steel:
According to Mc-Kinsey and Co the domestic steel industryis set to witness
a 33% over capacity in the hot rolled coil sector by the year 2003 when
thedomestic capacity currently at 45%, in long products and semis is
expected to drop at 22% by that year. The non-flat products are also likely to
face an over capacity of over 21.4%.
8/12/2019 A Project Report on EM
30/48
30
Lower Consumption:
Steel consumption in India over a period of time has exhibited astrategy correlation
to GDP growth (correlation coefficient of 0.9855 between 1960-1961and 1996-
1997) and gross domestic capital formation (0.981).The correlat ion with GDCF
has been 1.0 for the period FY 1994 to 1999. As investmentsdeclined
from 1996-1997 onwards, steel consumption also decreased. Failure to
DevelopTrade Especially International Trade
.
The countries which have achieved major growthincluding growth in
steel industry, like Japan, China and South Korea have largely used their trading
houses to develop their markets abroad. In India, they have singularly failed to do
so.As a result, Indian steel industry does not have a major presence even
in the neighboringcountries.The reasons for the same include lack of profit
motive, wrong scale of assets, little or no co-ordination between plants and
markets, inappropriate logistics/locations, over-manning, poor investment
decisions, lack of innovation and inadequate investment in requisite areas.
8/12/2019 A Project Report on EM
31/48
31
Slow Industry Growth:
The l inkage be tween the economic g rowth o f a coun t ry and
thegrowth of its steel industry is strong. The Indian steel industry is no
except ion. The growthof the domest ic steel industry between 1970
and 1990 was s imi la r to the g rowth o f theeconomy, which as a
whole was s lugg i sh . Th i s s lugg i sh g rowth in the s t ee l indus t ry
hasresulted in enhanced rivalry among existing firms. As the industry is
not growing the onlyother way to grow is by increasing one.s
marke t sha re . Consequen t ly , the Ind ian s t ee l indus t ry has
wi tnessed spur t s o f p r i ce wars and heavy t r ade d i scoun t s , which
h as don eIndian steel industry no good.
Social Factors:
Corpora te Soc ia l Respons ib i l i ty (CSR) has been to deve lop the
villages as model steelvillages. All profitable steel PSUs have made
commitments to the cause of CSR and haveearmarked at least 2% of
the i r d i s t r ibu tab le su rp lus fo r CSR ac t iv i t i e s . The to ta l budge t
a l loca ted fo r CSR in r espec t o f the PSUs fo r 2007-08 i s a round
Rs . 23 0. 00 cr or e. CS R activities focusing on environmental care,
8/12/2019 A Project Report on EM
32/48
32
education, health care, cultural efflorescence and peripheral
development, family welfare, social initiatives and other measures are
underway in the PSUs. In view of the calamity brought in by the floods in UP,
Bihar and Assam, some of the PSUs organized immediate relief measures in these
affected states SAIL, NMDC Ltd. and RINL contributed Rs.5 crore, Rs.4
crore and Rs.2 crore respectively towards the flood relief measures. All
the main producers have been urged by the Ministry to adopt villages
a r o u n d t h e i r p l a n t a n d a s p a r t o f t h e i r C S R a c t i v i t y a n d
h e l p . U s e o f s t e e l h a s b e e n emphasized in items such as storage beans,
bullock carts, buildings such as school buildings, panchaya t h a l l s , h ea l th
cen t r e bu i ld ings , wa te r t anks , wa i t ing sheds e t c . 129 v i l l ages
a re being developed into model steel villages.
Child labour is the issues of small scale sector of the steel industry.
Children were exploited by paying them low wages. A decision was taken
to have at least one dealer in each district in order to make availabl
esteel items to common man. In order to ensure the availability of
commonly used items of steel in the rural areas across the countr y,
SAIL and RINL are expanding their distribution networks at a fast pace
8/12/2019 A Project Report on EM
33/48
33
with the objective of having dealers in all the districts of the country.
Pr ef er en ce fo r SC , ST an d OB C ent and occupation.As id e it s lo ng
hi s to ry , Ta ta S tee l has wr i t t en the book o n wel fa re measures
in Indi an Industry many of which, have been subsequently followed by others i
Safety Measures
For improvement in the overall safety situation in the Iron & Steel industries in
Indiafollowing remedial measures need to be taken up:
T i g h t e n i n g t h e l e g a l s y s t e m s o t h a t a n y i n s t a n c e o f v i o l a t
i o n o f s a f e t y p o l i c y , w h e t he r b y p u bl i c s e ct o r o r p r iv a te
sec to r , does no t go unpena l i sed . The sys tem
o f f a c t o r y i n s p e c t o r a t e , s a f e t y o f f i c e r s a n d l e g a l f r a m e w o
r k h a s t o b e r e f u r b i s h e d accordingly. There should be up-gradat ion
in legal provisions to take care of changes intechnologies / work
environment so that loopholes are plugged as far as possible.
OHS Management sys tem as pe r ILO gu ide l ines and OHSAS
18001 should b eadopted in all plants.
8/12/2019 A Project Report on EM
34/48
34
In India, many outdated technologies viz., twin hearth furnace, ingot
making etc. arestill being practiced in some steel plants. These
processes are hazardous to personnelworking there and it is required to phase
these out immediately to improve safety in such plants. Apart from this, new
technological development will also facilitate attainment of safe work
environment.
F i r e m o d e l i n g a n d h a z a r d r i s k a n a l y s i s s h o u l d b e d o n e i n
a l l p l a n t s f o r b e t t e r assessment of inherent risk/ hazard:
Social Audit (2002-03)
The Soc ia l Audi t be ing r epor ted , fo r the pe r iod 1991 2001 ,
wa s co nd uc te d du ri ng th e period 2002- 03 within the framework of
8/12/2019 A Project Report on EM
35/48
35
the same Terms of Reference as that of the 2ndSocial Audit. The
Audit Panel comprised of the following members recommended by
theBoard:
Ms. Pheroza Godrej
Justice S. K. Mohanty
The late Justice D. N. Mehta (Retd.)(Chaired the Panel until June 2003, when he
suddenly passed away)
Ms. Tarjani Vakil, MD, EXIM Bank (opted out during the initial phase of the
Audit)The Company nominated Mr. Ajit Jha, Resident Representative,
New Delhi, Tata Steel, as the Secre tary and Chief, Co-ordination ,
3rd Social Audit, to provide management support to the Audit Panel,
and later in the evaluation process, his role mandated to be independent
of intra-company domain. Subsequently, Mr. S. K. Suman, Head, Co-
ordination, Tata Steel was nominated by the management to provide
research and report assistance to the Tata Iron & Steel Company Panel. Mr.
8/12/2019 A Project Report on EM
36/48
8/12/2019 A Project Report on EM
37/48
8/12/2019 A Project Report on EM
38/48
38
2. Management Team
- Tata Steel has a highly credible management team who has displayed their skills
in expanding the company through inorganic route. The company has successfully
acquired Nat Steel of Indonesia, Millennium Steel of Thailand and more
importantly Corus. The companys virtuosos of finance have been able to find
innovative ways to tackle the companys bulgeoning debt and keep thebottom line
in the green zone despite lowering demand and huge debts accumulated.
3. Information Technology
- The entire mining operation of the Company is safeguarded against accident
occurrence. Proactive measures are undertaken to ensure the employee's health and
productivity through ergonomically designed work stations and by protecting them
from occupational hazards. All its mines are ISO-14001 -Environmental
Management System Certified. Tata Steel's collieries use 'Surpac', a state-of-the-art
mine planning software that estimates the volume of coal in every seam. This
software is coupled with qualitative detailing that focuses on output consistency.
To maximize productivity and utilization, a voice and data equipped Global
Positioning System is used, which helps to supervise mining activity for machine
movement and engine status.
8/12/2019 A Project Report on EM
39/48
39
4. Innovativeness of TATA Steel with respect to its competitors
- Tata Steel has the lowest operating cost for steel manufacture in the world
Further it has displayed effective means in adopting an eco-friendly and
sustainable approach towards the manufacture of steel thus
Proactive measures are undertaken to ensure the employee's health and
productivity through ergonomically designed work stations and by protecting
them from occupational hazards.
5. Adaptability of the company in the fast change of the environment
- Tata Steel has displayed immense agility in the recent past during the global
financial tsunami. Its virtuosos of various fields have adopted various methods like
lowering of production and even shutting down of steel plants owing to the lack of
demand, managing the balance sheet efficiently etc. The company has 70% of its
procurement of raw materials for its operations in Asia through long term contracts
and so its margins can be shielded from the nuances of the volatility of
the financial markets
8/12/2019 A Project Report on EM
40/48
40
6. Brand value
- The TATA brand owing to its highly ethical and a socialistic approach to
business have made its name synonymous to trust. After the acquisition of Corus
another powerful brand, the brand value of the company has enhanced further.
7. Corporate governance
- Tata Steel has had impeccable record for corporate governance. It has set the
benchmark in global corporate governance principles of transparency,
accountability and equity for others to follow. Tata Steel has been consistently
receiving prestigious awards at both the national and the international arena.
Recently it bagged the Best Governed Company Award for corporate practices
presented by Asian Centre for Corporate Governance.
8. Excellent integration with Corus
Corus has a great reserve of around2000 metallurgists and technology which
could be exploited by Tata Steel on several fronts.
8/12/2019 A Project Report on EM
41/48
41
9. Excellent procurement philosophy
- Tata Steel has around 70% of its supplies through long term contracts. Thus it can be
shielded from the volatility of the financial markets.
10. Spawning upon opportunities
- Tata Steel has been amongst the earliestto spot the escalation in the demand for
steel in the forthcoming years. It hashence invested heavily in the expansion of its
existing facility at Jamshedpurand is setting up other green field projects at Orissa,
Jharkhand etc
8/12/2019 A Project Report on EM
42/48
42
8.BUSINESS PLANTata Steel Consulting provides business planning services to a range of industrial
sectors, including:
Iron and steel - all long and flat products
Tube and pipe
Foundry and forge products
Rail products
Iron ore mining
Engineering steels
Wire products
Metal fabrication industries
Steel distribution and service centres
Ferro alloys
The business planning group operates independently or in tandem with other
groups within Tata Steel Consulting and sometimes in collaboration with external
organisations such as management consultants and investment banks. As a result it
8/12/2019 A Project Report on EM
43/48
43
can always call upon an exceptional range of skills and experience to meet the
diverse requirements of its clients.
Clients
The business planning group has assisted a broad range of clients, in public and
private sectors, situated in a large number of countries.
Expertise
Assignments undertaken are diverse in terms of the problems and issues addressed.
Tata Steel Consulting has provided strategic assistance to numerous manufacturing
companies.
Methodologies
A wide range of expertise and methodologies is employed by the business planning
consultancy group. The first stage of assignments often requires detailed analysis
http://www.tatasteelservices.com/en/products_and_services/consulting_services/business_planning/clients/http://www.tatasteelservices.com/en/products_and_services/consulting_services/business_planning/expertise/http://www.tatasteelservices.com/en/products_and_services/consulting_services/business_planning/methodologies/http://www.tatasteelservices.com/en/products_and_services/consulting_services/business_planning/methodologies/http://www.tatasteelservices.com/en/products_and_services/consulting_services/business_planning/expertise/http://www.tatasteelservices.com/en/products_and_services/consulting_services/business_planning/clients/8/12/2019 A Project Report on EM
44/48
44
of market prospects for the client company. This can involve extensive interview
programmes in the metals consuming sectors as well as economic and demand
forecasts.
New Delhi: The world's seventh largest steel maker Tata Steel Ltd, a part ofIndia's diversified business conglomerate Tata Sons Ltd, plans to sell its
stake in various group companies, including Tata Motors Ltd, to raise fund
for expansion and repay high cost loans, the Business Standard reported
citing unidentified bankers.
The steel major may garner as much as Rs 72 billion via selling its stake in group
companies, the bankers told the paper.
Presently, Tata Steel owns 5.6% equity stake, worth Rs 50.14 billion, in Tata
Motors. Besides, it also holds 51% stake in Tata Sponge; 73.4% in Tinplate India;
54.5% in Tayo Rolls; 32.5% in TRF Ltd; 0.7% in Tata Power and 50% in Dhamra
Ports.
8/12/2019 A Project Report on EM
45/48
45
The steel making company may sell these stakes to the holding company Tata Sons
Ltd to raise funds, which will be utilized for expansion in the Odisha state and
repay higher cost loans, bankers told the daily.
Early this year, Tata Steel was holding discussion with Adani Group to divest its
holding in the Dhamra port project (Odisha), media reports said, adding that the
company is now awaiting the Odisha government's approval to raise capacity so
that it gets a better valuation for the loss-making port company.
Tata Steel plans to spend around Rs 420 billion in its Odisha plant in two phases.
Total expenditure for the phase I has risen up to Rs 240 billion from the earlier
estimated Rs 190 billion on account of currency fluctuation and other cost overrun
Tata Steel Europe has won an order to manufacture 60,000 tonnes of high-quality rail for a new high-speed line linking the two holy cities of Makkah
and Madinah in Saudi Arabia.
The new railway will allow millions of pilgrims to cross the 444km between
the two cities at speeds of 320kmh.
The line will cross desert, withstanding temperatures ranging from freezing
to 50C, as well as sand storms, flash flooding and shifting dunes, a statement
said.
8/12/2019 A Project Report on EM
46/48
46
Grard Glas, rail sector head for Tata Steel, said: "This is a prestigious
project which will see the holy cities being linked by rail for the first time.
"Tata Steel is delighted to be contributing to this high-speed line, which will
have to overcome some major challenges presented by building a high-capacity
rail line across some of the most extreme terrain in the world."
Steel for the project will be made at Tata Steel's Scunthorpe plant in the UK
before being rolled into rail in lengths of 25 metres both there and at the
company's plant in Hayange, Northern France, he said.
Work on producing the rail will start at the end of this year and is expected
to continue throughout 2014.
Tata Steel rail has already been used successfully in similarly challenging
conditions for projects in Brazil and Mauritania, the statement added.
Last year the Saudi Railways Organisation awarded the contract for the
finalphase of completing, running and maintaining the Haramain High-
Speed Rail Project to a group of Spanish infrastructure, construction and
technology companies.
8/12/2019 A Project Report on EM
47/48
47
The new line is expected to carry around 160,000 people a day - and even
more during the Hajj pilgrimage. They will be transported on a fleet of 35
new high-speed trains.
The project started in 2009, with an estimated cost of more than 12bn. The
new rail line is set to open to the public in late 2014 or early 2015.
Besides the two holy cities, the line will have three other stops, two in
Jeddah for commuters and one in Saudi Arabia's new King Abdullah
Economic City, a residential, industrial and commercial macro-complex that
is still being built.
Spanish construction companies Copasa, Imathia and OHL are responsible
for building the line's superstructure and the track bases, as well as for the
line's mechanisms.
8/12/2019 A Project Report on EM
48/48
9.BIBLIOGRAPHY:Websites:
(1) http://steel.nic.in/Perfomance%20budget%20(2005-06)Englishchap2.pdf
(2)http://www.ieIndia.orgpdf8989MM104.pdf
(3)http://article.wn.com
(4)http://steel.nic.in/
(5)http://www.tatasteel.com
(6)http://greenbussinesscentre.com/images/photos/Exp48.pdf
(7)http://www.tatasteel.com/newsroom/awards.asp
(8)http://www.ieIndia.orgpdf8989MM104.pdf
(9)http://www.tatasteel.cominvestorrelations2002pdfsmda.pdf
(10)http://steel.nic.in/Performance%20Budget%20(200506)Englishchap2.PDF
(11) http://www.tatasteel.cominvestorrelationsan200708investor-presentation-feb0
8.pdf
(12)http://www.slideshare.net/pankajhambarde/tata-corus-ppt-presentation
(13) http://www.tata.com/company/Articles/inside.aspx?artid=KfibEhYKXcE
http://www.ieindia.orgpdf8989mm104.pdf/http://article.wn.com/http://article.wn.com/http://steel.nic.in/http://steel.nic.in/http://www.tatasteel.com/http://www.tatasteel.com/http://greenbussinesscentre.com/images/photos/Exp48.pdfhttp://www.tatasteel.com/newsroom/awards.asphttp://www.tatasteel.com/newsroom/awards.asphttp://www.ieindia.orgpdf8989mm104.pdf/http://www.tatasteel.cominvestorrelations2002pdfsmda.pdf/http://steel.nic.in/Performance%20Budget%20(200506)Englishchap2.PDFhttp://steel.nic.in/Performance%20Budget%20(200506)Englishchap2.PDFhttp://steel.nic.in/Performance%20Budget%20(200506)Englishchap2.PDFhttp://www.slideshare.net/pankajhambarde/tata-corus-ppt-presentationhttp://www.slideshare.net/pankajhambarde/tata-corus-ppt-presentationhttp://www.slideshare.net/pankajhambarde/tata-corus-ppt-presentationhttp://steel.nic.in/Performance%20Budget%20(200506)Englishchap2.PDFhttp://www.tatasteel.cominvestorrelations2002pdfsmda.pdf/http://www.ieindia.orgpdf8989mm104.pdf/http://www.tatasteel.com/newsroom/awards.asphttp://greenbussinesscentre.com/images/photos/Exp48.pdfhttp://www.tatasteel.com/http://steel.nic.in/http://article.wn.com/http://www.ieindia.orgpdf8989mm104.pdf/