The Century of TrustShyam Zalavadia (s2708810)Abhishek Samant (s2705371)Aditya Kakatkar (s2705942)

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• Historical OverviewHistorical Overview

• Company ProfileCompany Profile

• Company StatisticsCompany Statistics

• Deep rooted history Deep rooted history

• Introduction to Tata Steel Introduction to Tata Steel

• Tata Steel Mission & VisionTata Steel Mission & Vision

• Global Steel IndustryGlobal Steel Industry

• Company growth phasesCompany growth phases

• Business strategiesBusiness strategies

• Porters five forcePorters five force

• Future outlookFuture outlook

• Mergers & AcquisitionMergers & Acquisition

• Conclusion Conclusion

Agenda Agenda

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Historical OverviewHistorical Overview

• Jamsetji Nusserwanji Tata started a private trading firm, laying the

foundation of the Tata Group in 1868.

• The Central India Spinning, Weaving and Manufacturing Company

is set up, marking the Group's entry into textiles in 1874.

• Ratan Tata joined the TATA group in December 1962.

• In 1981, Ratan Tata named as chairman of TATA Industries.

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Company profile Company profile

• TATA group of industries is India’s largest business group in

India.

• Diverse businesses in 7 sectors.

• Group revenue: FY 2008: US$ 62.5 billion/ Rs 251,543 cr.

• Group profit: FY 2008: US$ 5.4 billion/ Rs 21,578 cr.

• International income: 61% of group revenue.

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Company profileCompany profile

• Operations: over 80 countries.

• Products & Services exported to 85 countries.

• It is one of the Largest employer in private sector over

300,000 employees.

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Company profileCompany profile

• TATA group of companies is diverged in 7 business sectors.– Materials

– Engineering

– Chemicals

– Information technology & communications

– Energy

– Services

– Consumer products

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Company StatisticsCompany Statistics

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Core ValuesCore Values

• Integrity

• Understanding

• Excellence

• Unity

• Responsibility

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Mission & Vision Mission & Vision

• Mission: to be a competitive value provider in international

business for Group companies and all our partners.

• Vision: Become a globally networked enterprise seizing

opportunities worldwide to generate USD 25 million annual

profits by 2008.

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Deep Rooted HistoryDeep Rooted History

Foundation1868-1931

Consolidation1932-1989

Expansion1990

onwards

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1874

1902

1907

1910

1911

1912

1917

Central India Spinning, Weaving and Manufacturing Company

TAJ MAHAL PALACE AND TOWERS

TISCO, TATA LIMITED IN LONDON

TATA ELECTRIC COMPANIES

INDIAN INSTITUE OF SCIENCE

EIGHT HOUR WORKING DAYS

TATA OIL MILLS

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Consolidation Consolidation

• The Tata group ventured into new areas and built on the

foundations, in spite of the restraints imposed by a controlled

economy.

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1932

1939

1945

1952

1954

1962

1968

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Expansion Expansion

• The liberalization of the Indian economy unleashed a period of

remarkable growth for the Tata group, in India and worldwide.

• Tata ventured in to mergers and acquisitions in the late 1990s.

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Introduction to TATA STEELIntroduction to TATA STEEL

Established – 1907

Fortune 500 Company

Worlds 6th largest steelmaker: 28 MTPA(million ton per annum)

Presence in 50 markets; manufacturing in 24 countries.

Revenue is $32.83 bn. (domestic – 37%, International – 63%).

Expansion Plan

– Brownfield: Jamshedpur works

– Greenfield: India and Overseas

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TATA SteelTATA Steel

16Source: Tata Annual Report (2008)

Mission & Vision ( Tata Steel)Mission & Vision ( Tata Steel)

• Vision - “We aspire to be the global steel industry benchmark

for Value Creation and Corporate Citizenship”.

• Mission – Create differential value for the customers with the

help of continuous improvement in their business process and

technology.

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Global Steel IndustryGlobal Steel Industry

18Source: Krishnamurthy 2005

Company Growth PhasesCompany Growth Phases

First Phase :

• The First phase is the year up to 1991.

• Tata Steel was the first integrated steel company in Asia.

• There were price control – an administered control of the

economy.

• Tata Steel was not greatly innovative, not greatly business

minded.

• Technology-wise, Tata Steel was a dead company by 1991.

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Company Growth PhasesCompany Growth Phases• The ten years from 1991 to 2001 was about

laying business foundations.

• Tata Steel threw out the old furnaces and

scrapped capacity.

• Tata Steel spent Rs. 10,000cr doing all the

restructuring.

• Tata steel re-engineered its business processes.

• Tata Steel became one of the lowest-cost

producers and one of the most modern

companies in the world ( 2001).

20Source: Iron & Steel Statistics Bureau USD $1= Rs 50.

Company Growth PhasesCompany Growth PhasesThird Phase :

• After 2001, Tata Steel Started thinking of growth and

globalization.

• In last 3 to 4 years, Tata Steel has been trying to do Mergers &

Acquisitions globally.

• Tata Steel is now the 6th largest Steel Producer in the world.

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Worlds 6th largest steel producer

Major Mergers & Acquisitions

22Source: Goldman, M 2007

Brand ProfileBrand Profile

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Business strategyBusiness strategy

• Green field project:

– Primary steel will be produced in India, where there are large deposits

of iron ore.

– Other Asian market like Thailand, Vietnam, Shanghai etc.

• Brown field project:

– Its target is nearly on the way of completion e.g. Jamshedpur.

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Porters 5 forcePorters 5 force

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Porter Five Forces ModelPorter Five Forces Model

• Threat of New entrants – High - steel industry is a capital

intensive business.

• Intensity of rivalry among existing competitors – High The

major domestic rivals are SAIL, JSW, ISPAT& ESSAAR steel.

• The bargaining power of suppliers – High – Since the domestic

raw material sources are insufficient to supply the Indian steel

industry, a considerable amount of raw materials has to be

improved.

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Continued Continued

• The threat of substitute products – Low – Plastic and

composites pose a threat to Indian steel in one of its biggest

markets- automotive manufacture.

• The bargaining power of buyers – Mixed- some of the major

steel consumption sectors like automobiles, oil and gas,

shipping, consumer durables and power generations enjoy

high bargaining power and get favourable deals.

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Future OutlookFuture Outlook

• The Tata steel group will pursue strategic growth through

capacity expansions and securing access to raw materials.

• Tata group is also looking at further integration upstream in

raw materials with an ambition to achieve 100% self-

sufficiency in India and around 50% self-sufficiency in Europe

over time.

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M&AM&A

• Tata Tea -acquires the Tetley Group, UK. This is the first major

acquisition of an international brand by an Indian business group in 2000.

• IHCL- The Indian Hotel Company And its subsidiaries are collectively

known as Taj Hotels Resorts and Palaces, which is recognized as one of

Asia's largest and finest hotel companies. Incorporated by the founder of

the Tata group Jamsetji Tata.

• Tata AIG - Tata AIG Life Insurance Company Limited (Tata AIG Life) is

a joint venture company , formed by the Tata Group and American

International Group, Inc.

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Continued Continued

• Tata Coffee – In 2003 TATA Coffee acquires US based Eight o’ Clock

Coffee co.

• Telco Construction - Tata Group company, signed a deal in March 2008

to acquire a 79 per cent controlling stake in Spain-based Serviplem SA at a

cost of Euros 45 million.

• Tata Motors – The Tata Motors has signed the Jaguar and Land Rover

(JLR) deal with Ford last evening, which is estimated to be valued between

2.5 billion dollars.

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Continued Continued

• TCS – Acquires Sydney-based Financial Network Services

(FNS).

• Tata communications - The Tata Group acquires a

controlling stake in VSNL.

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Company LogosCompany Logos

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TATA NanoTATA Nano

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Conclusion Conclusion

• After conducting an in depth study of one of India’s most

admired companies, we find that the company has many

strengths and opportunities which it may capitalize on to truly

become a world leader in steel making along with setting high

standards for corporate citizenship and social responsibility

towards a long term sustainable growth.

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ReferencesReferences• Corus Group, 2008, Corus is a part of Tata group, viewed on 18 October 2009,

<http://www.corusgroup.com>

• Goldman, M 2007, India’s Tata Group: Shifting Gears; viewed on 13 October 2009,

<http://www.gibsreview.co.za/>.

• Gopalkrishnan, R 2003, Experiences at Tata Group, viewed on 15 October 2009,

<http://www.tata.com>.

• Johnson G., Scholes K., and Whittington R 2005, Exploring Corporate Strategy, Prentice

Hall; Harlow; Ed. 7th; ISBN: 0273687395.

• Krishnan, R 2007, Land Rover, Jaguar bid fits into Tata strategy; The Hindustan Times,

viewed on 08 October 2009, <http://www.hindustantimes.com/>.

• Krishnamoorthy, V 2005, The McKinsey Quarterly: An interview with Ratan Tata, viewed on

16 October 2009,< http://venkatkrish.blogspot.com/>.

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ReferencesReferences• Sriwastawa, S 2006, More Steel for emerging India, viewed on 16 October 2009,

<http://www.atimes.com/>.

• Tata Leadership with Trust, 2009, Heritage, viewed on 12 October 2009,

<http://www.tata.com>.

• Tata Steel company, 2009, Annual Report 2008, Viewed on 14 October 2009,

<http://wwwtatasteel.com>.

• Tata Chemical, 2009, News Report 2008, viewed on 17 October 2009,

<http://www.tatachemical.com>

• Tata Motors, 2009, Tata nano media report 2009, viewed on 16 October 2009

<http://www.tatamotors.com>.

• Tata Indicom, 2009, Press Realiese, viewed on 18 October 2009,

<http://www.tataindicom.com >.

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