tata tisco

7/29/2019 tata tisco

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PRESENTATION ON

Chandrasekhar

Sharma

Kunal bhale

Mihir Chitnis

Jagrit Minocha

Jay Bodar

Nitin Dharival Pritam

Ankur Himanshu

Richa kumari

Shefali Vansia

Sonal Solanki


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MACRO ANALYSIS


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Manufacturing is the use of machines, tools and

labour to produce goods for use or sale.

Manufacturing helps other sectors like

agriculture, services, FMCG to enhance theircapabilities.

The manufacturing sector is closely connected

with engineering and industrial design.

Usually directed towards mass production. Indias manufacturing sector needs to grow and

contribute more toward the economy

INTRODUCTION OF

MANUFACTURING SECTOR


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17%

2.70%

13.90%

1.70%8.10%25.20%

17.00%

14.30%

GDPAgriculture Forestry and Fishing

Mining and Querring

Manufacturing

Elecricity, Gas & Water Supply

Construction

Trade, Hotels, Transport andCommunicationFinancing, Insurance, Real Estate

and BusinessCommunity, Social and personal

services

CONTRIBUTION TOWARDS

GROWTH OF ECONOMY


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Political Factors

Trade deficit forced Indira Gandhi to support modernization of the

public sector industries and relax a few trade restrictive laws.

National Steel Policy (2005)

Customs Policy

Deregulation of Iron and Steel Prices

Currently government plans to increase pig iron production to 6 lakh

tons and steel manufacturing upto 1 million tons

PESTEL ANALYSIS


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Economic Factors

Contribution in GDP growth and employment

Slowing Growth in European and American Markets But

Steady Rise in Asian Markets

Negative Factors Affecting the Steel Industry.

Social Factors Various Policies of Tata Steel:-

a) Quality Policy

b) Safety Occupational Health and

Environmentalpolicy

d) Social Accountability Policy

e) Corporate Social Responsibility Policy

f) Drug & Alcohol Policy

g) HIV+ & AIDS Control Policy


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Technological Factors

Strategy to make low phosphorus Steel.

. Improvement of vessel lining life from 160-180 heats to over 1000heats

. Adoption of continuous casting through billet and slab casters.

Environmental Factors

Environmental sustainability has become an increasingly important

item on the Tata Steel agenda. The new basic oxygen steelmaking

(BOS) gas recovery project at Port Talbot in the UK will reduce thesites CO2 emissions by some 240,000 tonnes per year and its dust

(PM10s) emissions by 40 tonnes.


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Legal Factors

Following are some key laws and policies that affect the steel

industry in India:-

Deregulation of Iron and Steel Prices

Customs Policy:-

THE IRON AND STEEL COMPANIES

AMALGAMATION ACT, 1952.ACT NO. 79 OF

1952.[29th December, 1952.]


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THE TATA IRON

AND STEEL

COMPANY

TURNOVER

33933.46

MARKET SHARE 11%

PRODUCTION OF STEEL 5.2

JINDAL STEEL

WORK(JSW)

TURNOVER 13334.65

MARKET SHARE 19%

PRODUCTION OF STEEL

8.4

STEEL AUTHORITY OF

INDIA LIMITED(SAIL)

TURNOVER 48262.91

MARKET SHARE 32%


ESSAR STEEL TURNOVER 47905.33

MARKET SHARE

19%

PRODUCTION OF STEEL - 8.4

RASHTRIYA ISPAT

NIGAM LIMITED(RINL)

TURNOVER 24064.71

MARKETSHARE 8%


MAJOR PLAYERS OF STEEL

MANUFACTURING


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COMPANY ANALYSIS

INTRODUCTION: Tata Iron and Steel Company Limited is anIndian multinational steel-making company headquartered

in Mumbai, India and a subsidiary of Tata Group.

FOUNDING PRINCIPLES: The Tata Group has consistently been

run according to the principle that the wealth it creates should be

returned to society.

VALUES: The Tata Group has always been driven by five core

values -Integrity, Understanding, Unity, Excellence, Responsibility.

LEGAL ENVIRONMENT

GOALS: Value creation

Safety

Environment

People


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PRODUCTS


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BRIEF HISTORY OF THE COMPANY

1907: Tata Steel is established by Jamsetji Tata.

1939: By now, TISCO operates as the largest steel plant in the British Empire.

1951: A Modernization and Expansion Program (MEP) is launched.

1970: TISCO employs 40,000 people at Jamshedpur and 20,000 workers inneighboring coal mines.

1990: TISCO begins expanding and establishes subsidiary Tata Inc. in New

York.

1998: TISCO records a 61 percent decline in net income due to a downturn in

the steel industry.

2000: TISCO completes a ten-year, $1.5 billion modernization program.


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ORGANISATION STRUCTURE


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INDUSTRY ANALYSIS

CURRENT TRENDS AND TECHNOLOGIES

Machinery Equipment.

TISCO rolls steel powers with SAP technologies. Choosing the platform and technologies.

Mapping technology to business process.


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MARKET SHARESAIL TATA STEEL JSW ESSAR STEEL OTHERS

44% 13% 20% 11% 12%

44%

13%

20%

11%

12%

SAIL

Tata Stel

JSW

Essar Steel

Others


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SWOT ANALYSIS

STRENGTH

Mineral reserves

Management team

Corporate governance

Brand value

WEAKNESS

Huge debt burden

High attrition rate

Product in the portfolio lacking

demand

Low cost recovery

OPPORTUNITIES

Competitive position of thecompany

Newer technologies

Acquisition opportunities

Opportunities for demand of

higher prices

THREATS

international competition Financial crises

Regulatory norms

Brand equity of the products


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MARKET STRATEGIES

Focused in market and customer demand.

Development in key industries and areas.

Priced closed to the market.

Created a weekly pricing mechanism.

TISCO promoted the marketing and sales.

Seized the opportunity of stimulating domestic demand.


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GOVERNMENT REGULATION AND

POLICIES

The Eleventh plan working group for steel recommends the following

for effective development of the steel industry:

Full utilization of the existing policy framework of Public-Private

Partnerships (PPPs) in development of infrastructure like Railways.

Set up an R&D Mission in order to provide accelerated thrust onR&D and thereby improve the competitiveness of the industry.

Develop an appropriate Institutional Framework for collection of

data and dissemination of Information.

Consider setting up of a multi-disciplinary organization along the

lines of the International Iron & Steel Institute (IISI).

A Technology Up gradation Fund Scheme (TUFS) for the Small and

Medium Enterprises(SME) sector in steel industry to upgrade the

technological profile of the plants in the SME sector.


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Statement of Profit & Loss of last two years

Consolidated Profit & Loss account

------------------- in Rs. Cr. -------------------

Mar '12 Mar '11

Sales Turnover 135,975.56 121,345.75Excise Duty 3,075.86 2,686.43

Net Sales 132,899.70 118,659.32

Other Income 4,934.95 3,687.41

Total Income 138,620.58 123,702.71

Total Expenses 121,268.84 103,744.71

PBDIT 17,351.74 19,958.00

Reported Net Profit 4,948.52 8,856.05


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Balance Sheet as of last two years

------------------- in Rs. Cr. -------------------Sources Of Funds Mar '12 Mar '11

Total Share Capital 993.84 958.74

Equity Share Capital 971.41 958.74

Share Application Money 17.46 195.66

Preference Share Capital 22.43 0.00

Reserves 41,644.81 35,926.97

Networth 42,656.11 37,081.37

Secured Loans 27,482.74 28,604.40Unsecured Loans 24,729.58 32,079.94

Total Debt 52,212.32 60,684.34

Minority Interest 1,091.15 888.90

Total Liabilities 94,868.43 97,765.71


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Application Of Funds 12 mths 12 mths

Inventories 25,598.00 24,055.24

Sundry Debtors 14,878.48 14,816.28

Cash and Bank Balance 10,801.58 10,892.60

Total Current Assets 51,278.06 49,764.12

Loans and Advances 12,001.92 10,180.08

Fixed Deposits 39.39 0.00

Total CA, Loans & Advances 63,319.37 59,944.20

Current Liabilities 42,790.58 29,738.61

Provisions 8,085.10 7,089.92

Total CL & Provisions 50,875.68 36,828.53

Net Current Assets 12,443.69 23,115.67

Total Assets 95,959.58 98,654.61

Contingent Liabilities 20,017.64 19,719.63


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FINANCIAL ANALYSIS

Mar '12Mar '11

Net Profit Margin(%) 3.72 7.46

Current Ratio 1.24 1.59

Quick Ratio 0.74 0.97

Debt Equity Ratio 1.23 1.63


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COOPERATE SOCIAL

RESPONSIBILITY

Tata Steel approves donation of Rs. 3.39 for supporting education for

tribal

Tata Steel Organizes Championship on Physical Prowess

Tata Steel Partners to provide Healthy Mid-Day Meal ,Education to

Underprivileged School Children in East Singhbhum

Tata Steel Nurtures Rural Football Talent in Jharkhand.

Tata Steel joins hands with Tata Cummins to Launch Skill Development

Programme NAYI DISHA

Tata Steel commits 40 cr for CSR & 33 for Environment

Protection at Gopalpurpark.


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CONCLUSION

TATA Steel shows commitment and progress towards

key targets of sustainability as well as sustainable

decision making in its customers and within their

markets . The key to the success of this approach is torecognise the unique properties of steel as a recyclable

material to ensure that measurements of sustainability

are taken over the entire life cycle a product, not just

the use face.


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THANKYOU

tata tisco

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