Tata Tisco 4d2o6t

PRESENTATION ON

• • • • • • • • • • •

Chandrasekhar Sharma Kunal bhale Mihir Chitnis Jagrit Minocha Jay Bodar Nitin Dharival Pritam Ankur Himanshu Richa kumari Shefali Vansia Sonal Solanki

MACRO ANALYSIS

INTRODUCTION OF MANUFACTURING SECTOR • 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 their capabilities. • The manufacturing sector is closely connected with engineering and industrial design. • Usually directed towards mass production. • India’s manufacturing sector needs to grow and contribute more toward the economy

CONTRIBUTION TOWARDS GROWTH OF ECONOMY GDP

Agriculture Forestry and Fishing Mining and Querring

14.30%

17%

Manufacturing 2.70%

Elecricity, Gas & Water Supply 17.00% 13.90%

25.20%

8.10%

1.70%

Construction Trade, Hotels, Transport and Communication Financing, Insurance, Real Estate and Business Community, Social and personal services

PESTEL ANALYSIS Political Factors • Trade deficit forced Indira Gandhi to 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

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 Environmental policy d) Social ability Policy e) Corporate Social Responsibility Policy f) Drug & Alcohol Policy g) HIV+ & AIDS Control Policy

Technological Factors •

Strategy to make low phosphorus Steel.

• . Improvement of vessel lining life from 160-180 heats to over 1000 heats • . 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 the site’s CO2 emissions by some 240,000 tonnes per year and its dust (PM10s) emissions by 40 tonnes.

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.]

MAJOR PLAYERS OF STEEL MANUFACTURING 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% PRODUCTION OF STEEL – 13.5

ESSAR STEEL

TURNOVER – 47905.33 MARKET SHARE – 19% PRODUCTION OF STEEL - 8.4

RASHTRIYA ISPAT NIGAM LIMITED(RINL)

TURNOVER – 24064.71 MARKETSHARE – 8% PRODUCTION OF STEEL – 3.5

MICRO ANALYSIS

COMPANY ANALYSIS • INTRODUCTION: Tata Iron and Steel Company Limited is an Indian 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

PRODUCTS

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 in neighboring 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.

ORGANISATION STRUCTURE

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.

MARKET SHARE SAIL 44%

TATA STEEL 13%

JSW 20%

ESSAR STEEL 11%

OTHERS 12%

SAIL

12%

Tata Stel

11% 44%

JSW 20%

Essar Steel 13%

Others

SWOT ANALYSIS STRENGTH

WEAKNESS

• • • •

• Huge debt burden • High attrition rate • Product in the portfolio lacking demand • Low cost recovery

Mineral reserves Management team Corporate governance Brand value

OPPORTUNITIES

THREATS

• Competitive position of the company • Newer technologies • Acquisition opportunities • Opportunities for demand of higher prices

• • • •

international competition Financial crises Regulatory norms Brand equity of the products

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.

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 on R&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.

Statement of Profit & Loss of last two years Consolidated Profit & Loss ------------------- in Rs. Cr. -------------------

Sales Turnover Excise Duty Net Sales Other Income Total Income Total Expenses PBDIT Reported Net Profit

Mar '12

Mar '11

135,975.56 3,075.86 132,899.70 4,934.95 138,620.58 121,268.84 17,351.74 4,948.52

121,345.75 2,686.43 118,659.32 3,687.41 123,702.71 103,744.71 19,958.00 8,856.05

Balance Sheet as of last two years ------------------- in Rs. Cr. ------------------Mar '12 993.84 971.41 17.46 22.43

Mar '11 958.74 958.74 195.66 0.00

Reserves

41,644.81

35,926.97

Networth Secured Loans Unsecured Loans Total Debt Minority Interest Total Liabilities

42,656.11 27,482.74 24,729.58 52,212.32 1,091.15 94,868.43

37,081.37 28,604.40 32,079.94 60,684.34 888.90 97,765.71

Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital

Application Of Funds Inventories

12 mths

12 mths

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

39.39

0.00

Total CA, Loans & Advances

63,319.37

59,944.20

Current Liabilities

42,790.58

29,738.61

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

Fixed Deposits

Provisions

FINANCIAL ANALYSIS Mar '12 Mar '11 Net Profit Margin(%) Current Ratio Quick Ratio Debt Equity Ratio

3.72 1.24 0.74 1.23

7.46 1.59 0.97 1.63

COOPERATE SOCIAL RESPONSIBILITY • Tata Steel approves donation of Rs. 3.39 for ing 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 s hands with Tata Cummins to Launch Skill Development Programme NAYI DISHA

• Tata Steel commits 40 cr for CSR & 33 for Environment Protection at Gopalpurpark.

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 to recognise 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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