Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019

Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22

Name/s of the student Vihaan Sachin Vadnere Roll No.3625

Commerce Assignment for Year: 2021-22

Class: TYBA

Semester: 5

Paper Code: RUACOM501

Paper Title: Introduction to Management

Topic of Assignment Study of Tata Steel Ltd.’s Organizational

Management

Roll No. 3625

Email ID: [email protected]

Date of Submission: 10th August 2021

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 Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019
Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

Sr no. Index Page no.

1 Introduction 3

2 Management 4-13
➢ Goals
➢ Organizational Structure
➢ Policies and Practices
➢ Strategies
3 Global Management 14-15

4 Initiatives to tackle problems incurred by Covid-19 Pandemic 16-18

5 Conclusion 19

6 Bibliography 20

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 Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019
Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

Introduction
Tata Steel was established in 1907. It represents the country's single largest, integrated steel plant in
the private sector. The company has a wide product portfolio, which includes flat and long steel,
tubes, bearings, ferro-alloys and minerals as well as cargo handling services. While in terms of size,
Tata Steel ranks 34th in the world; it was ranked first (for the second time) among 23 world class
steel companies by World Steel Dynamics in June 2005. With its plant located in Jamshedpur
(Jharkhand) and captive iron ore mines and collieries in the vicinity, Tata Steel enjoys a distinct
competitive advantage. The main plant at Jamshedpur manufactures 5 MTPA of flat and long
products, while its recently acquired Singapore-based company, NatSteel Asia, manufactures 2
MTPA of steel across Singapore, China, Philippines, Malaysia and Vietnam. Apart from the main
steel division, Tata Steel's operations are grouped under strategic profit centers like tubes, growth
shop, bearings, ferro alloys and minerals, rings, Agrico and wires.

The company has many firsts to its credit and has been honored multiple times at various national
and multinational forums for its operational efficiency, quality standards, labor relations, corporate
social responsibility, corporate governance, leadership, knowledge management and other key
aspects. It has constantly reinvented itself technologically and updated its product portfolio to meet
changing market dynamics.

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 Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019
Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

Management
Management Goals: To be consistent with the vision and values of the founder Jamshedji Tata,
Tata Steel strives to strengthen India’s industrial base through effective utilisation of staff and
materials. The means envisaged to achieve this are cutting-edge technology and high productivity,
consistent with modern management practices. Tata Steel recognises that while honesty and integrity
are essential ingredients of a strong and stable enterprise, profitability provides the main spark for
economic activity. Overall, the Company seeks to scale the heights of excellence in all it does in an
atmosphere free from fear, and thereby reaffirms its faith in democratic values.

Companies Acquired by Tata Steel

➢ NatSteel in 2004: In August 2004, Tata Steel agreed to acquire the steel making operations of
the Singapore based NatSteel for $486.4 million in cash. NatSteel had ended 2003 with
turnover of $1.4 billion and a profit before tax of $47 million. The steel businesses of
NatSteel would be run by the company through a wholly owned subsidiary called NatSteel
Asia Pte Ltd. The acquisition was completed in February 2005. At the time of acquisition,
NatSteel had a capacity of about 2 million tons per annum of finished steel.

➢ Millennium Steel in 2005: Tata Steel acquired a majority stake in the Thailand-based
steelmaker Millennium Steel for a total cost of $130 million. It paid US$73 million to Siam
Cement for a 40% stake and offered to pay 1.13 baht per share for another 25% of the shares
of other shareholders. For the year 2004, Millennium Steel had revenues of US$406 million
and a profit after tax of US$29 million. At the time of acquisition, Millennium Steel was the
largest steel company in Thailand with a capacity of 1.7 million metric tons per annum,
producing long products for construction and engineering steel for auto industries.
Millennium Steel has now been renamed to Tata Steel Thailand and is headquartered in
Bangkok. On March 31, 2013, it held approx. 68% shares in the acquired company.

➢ Corus in 2007: On 20 October 2006, Tata Steel signed a deal with Anglo-Dutch company,
Corus to buy 100% stake at £4.3bn ($8.1 billion) at 455 pence per share. On 19 November
2006, the Brazilian steel company Companhia Siderúrgica Nacional (CSN) launched a
counter offer for Corus at 475 pence per share, valuing it at £4.5 billion. On 11 December
2006, Tata pre-emptively upped its offer to 500 pence per share, which was within hours
trumped by CSN's offer of 515 pence per share, valuing the deal at £4.9 billion. The Corus
board promptly recommended both the revised offers to its shareholders. On 31 January
2007, Tata Steel won their bid for Corus after offering 608 pence per share, valuing Corus at
£6.7 billion ($12 billion). In 2005, Corus employed around 47,300 people worldwide,
including 24,000 in the UK. At the time of acquisition, Corus was four times larger than Tata
Steel, in terms of annual steel production. Corus was the world's 9th largest producer of Steel,
whereas Tata Steel was at 56th position. The acquisition made Tata Steel world's 5th largest
producer of Steel.

➢ Rolling mill companies in Vietnam in 2007: Tata Steel through its wholly owned Singapore
subsidiary, NatSteel Asia Pte Ltd, acquired controlling stake in two rolling mill companies

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 Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019
Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

located in Vietnam: Structure Steel Engineering Pte Ltd (100% stake) and Vina steel Ltd
(70% stake). The enterprise value for the acquisition was $41 million. With this acquisition,
Tata Steel got hold of two rolling mills, a 250k tons per year bar/wire rod mill operated by
SSE Steel Ltd and a 180k tons per year reinforcing bar mill operated by Vina steel Ltd.

Organizational Structure
The entire structure of the organization of Tata Steel can be broadly divided into 3 levels, each level
having separate roles and responsibilities. These 3 levels are upper management, senior management
and the middle management. Each of these lower levels is responsible to perform its functions and
thereby report to the next higher level in the organization on a periodic basis. Overall, they can say
that the company has a flat structure, beginning from the top management to the lowest level of
management. The Upper Management of the company has designation like the Managing Director of
the entire company and the Group Executive officer. The Senior Management has the various Vice
Presidents of the different departments which come directly under the Managing Director. Under the
Vice Presidents they have the Chiefs of the various functions who coordinate the activities of its
function along with the other departments. There can be more than one chief in a department
depending upon the number of lines of the products. This is seen in the Long Products Departments.
The Chiefs are also accompanied by the Heads in some of the departments. Under these Chiefs and
Heads, they have the various Sectional Heads who are the Unit Leaders, the Managers or the
Officers. This structure is prevalent in the entire organization on a national scale. In the Finance and
Accounts Department of Tata Centre, Kolkata, the functions are handled by the Head of Marketing
and Finance. Then, there are the various Manager Accounts who handle the different aspects of the
department. Under these Managers are the officers who carry out the actual accounting work of the
department.
Board Of Directors

Name Designation
Mr. N Chandrasekaran Chairman
Mr. Ratan N Tata Chairman Emeritus
Mr. Koushik Chatterjee Executive Director & CFO
Dr.Peter Blauwhoff Independent Director
Mr. O P Bhatt Independent Director
Mr. Aman Mehta Independent Director
Mr. Deepak Kapoor Independent Director
Ms. Mallika Srinivasan Independent Director
Mr. T V Narendran Managing Director & CEO

Mr. V K Sharma Non-Executive Director

Mr. Saurabh Agrawal Non-Executive Director

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 Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019
Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

Management Policies and Practices: In keeping with the Tata Code of Conduct, Tata Steel has
formulated specific policies in different areas of operations that help to bring uniformity in processes
by clearly defining the business approach. Committed to following the principles of fair practices
and business ethics, Tata Steel has adopted the Tata Code of Conduct (TCOC) which lays down the
principles and standards to govern the actions of the Company and the employees. A number of
relevant policies have been formulated and implemented towards the practical application of TCOC
as enumerated below:

➢ ABAC Policy: This Anti-Bribery and Anti-Corruption (ABAC) Policy is applicable to the
company. The Company shall recommend adoption of this Anti-Bribery and Anti-Corruption
(ABAC) Policy to the boards of its Indian subsidiaries. The Company shall also encourage its
Indian associates and joint venture to adopt this Anti-Bribery and Anti-Corruption (ABAC)
Policy. Different countries may have different laws on bribery and corruption and therefore
the Company’s foreign subsidiaries, associates and joint ventures may adopt policies which
are relevant to the jurisdictions in which they operate and as advised and recommended by
their respective boards.

➢ Environment Policy: Respecting and safeguarding the environment is a fundamental

principle held by all Tata Group companies. Attaining excellence in Environmental
Sustainability is a strategic enabler in our quest to set benchmarks in Value Creation and

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 Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019
Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

Corporate Citizenship. Our actions and approach towards are guided by our policies, Tata
Code of Conduct and UN Global Compact Principles.

➢ Health and Safety Policy: Tata Steel’s safety and health responsibilities are driven by
commitment to zero harm to the people they work with and the society at large Backed by a
robust management system framework and a sound safety governance structure, endeavour to
achieve this objective. At the deployment level, six long term safety strategic priorities Build
(safety) leadership capability at all levels, improve competency and capability for hazard
identification risk management, contractor safety risk management, elimination of road rail
incidents, excellence in process safety management, improving occupational health
establishing industrial hygiene are the focal points behind several initiatives in our Safety
Excellence Journey. They have a strong governance structure driven by the Safety, Health
and Environment Committee of the Board (chaired by an Independent Director) and the Apex
Safety Council (Chaired by the Chief Executive Officer and Managing Director). Their
directives are cascaded through sub-committees chaired by relevant Vice Presidents through
monthly reviews, which are then executed across the organisation.

➢ Corporate Social Responsibility Policy: Tata Steel’s vision is “to be a global benchmark in
value creation and corporate citizenship”. The company has always endeavoured to conduct
its business responsibly, mindful of its social accountability, respecting applicable laws and
with regard for human dignity. The company’s long-term CSR objective is “to improve the
quality of life of the communities they serve globally through long term value creation for all
stakeholders”, which is in alignment with the Tata Group Core Purpose. The company shall
allocate at least 2% of its average net profits before taxes of the preceding three years,
towards CSR activities to sustain and improve a healthy and prosperous environment and to
improve the quality of life of the communities it serves. The company may also utilize its
products and services as suitable for its CSR activities. Any surpluses arising out of CSR
projects or programmes or activities shall be re-deployed back into CSR activities and will
not form a part of the business profits of the company. The company shall positively impact
and influence its employees and partners in fostering a sense of social commitment for their
stakeholders.

➢ HIV/AIDS Policy: Tata Steel is committed towards helping and halting the course of
HIV/AIDS, the company provides compensation to employees and their families without any
discrimination or discrepancy in the work place.

➢ Code of Corporate Disclosure Practices: It is mandatory in terms of the SEBI (Prohibition

of Insider Trading) Regulations, 2015, as amended from time to time, for every company
whose securities are listed on a stock exchange, to formulate and publish on its website a
Code of Practices and Procedures for fair disclosure of Unpublished Price Sensitive
Information The Code among other things also seeks to ensure timely and adequate
disclosure of Unpublished Price Sensitive Information to the investor community by the
Company to enable them to take informed investment decisions with regard to the
Company’s Securities. The provisions of this Code have to be read along with the

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Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

Regulations and if there is any inconsistency /contradiction between the two, the provisions
of the Regulations shall prevail.

➢ Anti-Money Laundering Policy: The fight against money laundering & terrorist financing is
a priority for the Company. They recognize that this fight is a team effort and ensure that its
policies, procedures, systems and controls appropriately and adequately address the
requirements of Know your Customer (KYC), Anti Money Laundering (AML)/Counter
Terrorist Financing (CTF) Law and regulations. They support and adhere to the major
international organizations, which collectively set and enforce standards for anti-money
laundering & combating terrorist financing policies and programmes such as FATF
(Financial Action Task Force), United Nation (UN), The European Union (EU), The
Organization of American States - The Office of Foreign Assets Control (OFAC) and the
local regulatory authorities. In conducting business with due skill, care and diligence, the
Company seeks always to comply with relevant laws, rules, regulation, codes and standards
of good practice.

➢ Climate change Policy: Tata companies will play a leadership role in climate change by
being knowledgeable, responsive and trustworthy, and by adopting environment-friendly
technologies, business practices and innovation, while pursuing their own growth aspirations
and the enhancement of shareholder value. Tata companies will measure their carbon
footprint and will strive to:
• Be the benchmark in their segment of industry on the carbon footprint, for their plants and
operations.
• Engage actively in climate change advocacy and the shaping of regulations in different
business sectors.
• Incorporate ‘green’ perspective in all key organisational processes.

➢ Data Privacy Policy: The purpose of this policy is to maintain the privacy of and protect the
personal information of employees, contractors, vendors, interns, associates, customers and
business partners of Tata Steel Limited and ensure compliance with laws and regulations
applicable to Tata Steel Limited. This policy is applicable to all TSL employees, contractors,
vendors, interns, associates, customers and business partners who may receive personal
information, have access to personal information collected or processed, or who provide
information to the organization. This Policy applies to all TSL employees, contractors,
vendors, interns, associates, customers and business partners who receive personal
information from TSL, who have access to personal information collected or processed by
TSL, or who provide information to TSL, regardless of geographic location. All employees of
TSL are expected to support the privacy policy and principles when they collect and / or
handle personal information, or are involved in the process of maintaining or disposing of
personal information. This policy provides the information to successfully meet the
organization’s commitment towards data privacy.

➢ Dividend Distribution Policy: The Dividend Distribution Policy has been developed in
accordance with the extant provisions of the Companies Act, 2013 and SEBI regulations. The

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 Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019
Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

Policy reflects the intent of the Company to reward its shareholders by sharing a portion of its
profits after retaining sufficient funds for growth of the Company. The Company shall pursue
this Policy, to pay, subject to the circumstances and factors enlisted hereon, progressive
dividend, which shall be consistent with the performance of the Company over the years.

➢ Document Retention and Archival Policy: The corporate records of Tata Steel Limited are
important assets. Corporate records include essentially all records, whether paper or in
electronic form. A record may be in the form of a memorandum, an e-mail, a contract or a
case study and includes computerized desk calendar, an appointment book or an expense
record etc. The law requires the Company to maintain certain types of corporate records
either permanently or for a specified period of time. Failure to retain the records could subject
the employees and the Company to penalties and fines, cause the loss of rights, obstruct
justice, adversely impact potential evidence in a lawsuit, place the Company in contempt of
court, or seriously disadvantage the Company in litigation. The Company expects all
employees to fully comply with this Policy, provided that all employees should note the
following general exception to any stated destruction schedule: If an employee has reasons to
believe, or the Company informs the employee concerned, that Company records are relevant
to litigation, or potential litigation then the employee must preserve those records until the
Legal or Respective Department determines that the records are no longer needed. This
exception supersedes any previously or subsequently established destruction schedule for
those records. If an employee believe that exception may apply, or has any question regarding
the possible applicability of that exception, he/she may contact the Office of Group General
Counsel.

Management Strategies
Tata Steel consistently focuses on driving and maintaining excellence in its operations through a
relentless drive for improvement in process, product and people. Tata Steel continually re-defines
performance parameters in its journey towards becoming the global steel industry benchmark for
value creation and corporate citizenship. They are amongst one of the few steel companies that has
its operations fully integrated – from mining to manufacturing and marketing of finished products.
Their manufacturing strategy has always focused on ensuring raw material security. This goes a long
way in enabling cost competitiveness and efficiencies, and has enabled Tata Steel to become the
lowest cost producer of steel in Asia. manufacturing strategy has always focused on ensuring raw
material security. This goes a long way in enabling cost competitiveness and efficiencies, and has
enabled Tata Steel to become the lowest cost producer of steel in Asia. Tata Steel is building the
leading European steel business that is sustainable in every sense. Every day more than 20,000
people make the difference by creating more value, in closer partnership with customers, enjoying
working, innovating, sharing and learning together. They are passionate about preserving our planet
and taking care of our communities, and they make sure they source our raw materials as well as
producing and transporting our steel in a responsible and ever more sustainable way. Strategy at Tata
Steel is driven by continuous efforts to stay alert to changing market requirements and to respond
through initiatives that drive change.

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 Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019
Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

Raw Material Strategy: Raw material integration is a strategy, pursued by the Company since
inception. Securing raw material linkages, has assumed greater importance, given the volatility that
exists in the raw material prices today. Iron ore and coking coal are two basic raw materials required
for manufacturing steel. Access to raw materials through our investment provides stability in terms
of quality and availability and provides a hedge against volatile prices.
The Company has made the following investments in overseas raw material projects:

• Benga Coal Project: Mozambique Tata Steel partners Rio Tinto in the Benga project, located
in the Moatize basin of Mozambique. The Company holds 35% equity stake and is entitled to
40% off-take of coking coal produced in the project. The project started producing coal and
made its first shipment in June 2012. The project is planned in phases. The full ramp up of
Phase 1 is expected to produce 5.3 mtpa Run of Mine (ROM) coal.
• Iron Ore Project: Canada Tata Steel through its subsidiary Tata Steel Minerals Canada
Limited (TSMC) is developing the Direct Shipping Ore (DSO) project in Canada. The
Company holds 80% equity stake in TSMC with the balance 20% equity stake held by New
Millennium Iron Corporation (NML), a Canadian listed mining company. Direct Shipping
Ore project successfully completed trial production in 2012 with initial mining and dry
processing of ~63% Fe grade iron ore. TSMC is targeting production of 1 million tonnes of
iron ore. The production is expected to be ramped up to about 6 mtpa.

NatSteel Strategy: Improvement plans in NatSteel initiated several measures to achieve its strategic
objectives. These initiatives coupled with strong demand in Singapore led the Company to return its
best ever performance in the last 10 years. NatSteel implemented numerous IT and automation
projects to enhance productivity across its operations in Singapore, China and Australia. • Singapore
continues to grow its value-added product line in the Reinforcement Solutions business. This year
the Company completed several projects in the mesh plant in Singapore and initiated a revamp in the
Cut and Bend lines. Next year, will see the execution of key projects in Scrap processing, EAF Shaft
Furnace upgrade, Bar and Wire Rod Mill upgrade, with the objective of significantly improving
labour productivity. As part of the portfolio restructuring activity in NatSteel, the Company divested
its stake in the Wires business in Wuxi, China and exited from its downstream operations in
Brisbane, Sunshine Coast and Townsville in Australia.

Turnaround Strategy: Tata Steel Thailand (TSTH) launched the 'Turnaround plan' in Thailand,
which included most of the Company's improvement projects. These improvement projects covered
the areas of product portfolio optimisation, new product development, operations cost reduction and
procurement cost savings. Here are some of the projects in detail:
• Product portfolio optimisation: A production planning model was implemented to improve
the total contribution by adjusting the product mix to suit the productivity and contribution
per tonne across the three plant sites.
• New product development: This specifically focused on introducing special bar quality
products in the Thailand market and attained consistent sales of 2500 tpm in the very first
year. It also covered the development of high-end wire rods hitherto not made at TSTH and
imported in Thailand.

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 Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019
Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

• Operations cost: This covered the conversion cost elements directed at addressing the overall
KPI of lowest billet cost.
• Procurement area: A project was launched to improve the reliability in domestic scrap
collection and optimisation of blending in various grades to help in reducing the total billet
cost. In addition, the 'Group buy' concept in high spends product categories like bearings,
electrodes have been initiated.

Product Strategy: The Company’s products consist of TSL products, produced by the Company’s
Indian operations and its NatSteel and Tata Steel Thailand operations, and Corus products, and
produced in the United Kingdom and The Netherlands. The variety of products uses in this strategy
are:
• TSL Products: TSL’s finished steel products are produced at its Indian facilities, as well as in
various Asia Pacific countries by NatSteel and in Thailand by Tata Steel Thailand. TSL’s
finished steel products can be principally divided into flat products and long products,
including wires. In addition, TSL also produces relatively smaller quantities of semi-finished
steel, rings, agricultural tools, and steel equipment. TSL’s ferro alloys segment produces
chrome ore, pyroxenite and manganese ore as well as ferrochrome and ferro manganese.
Ferro chrome and ferro manganese are used by the steel industry to create stainless steel
products. TSL is the leading manufacturer of ferro chrome in India and the leading
manufacturer of chrome ore internationally.
• Strip Products: Uncoated strip products comprise hot rolled, cold reduced and electrical
steels, which are sold both in coil form and, cut to length, in sheet form. Corus is one of the
market leaders in the manufacture of coated strip products.
• Long Products: Long products comprise sections and plates, and rods. Engineering steels also
form part of the long products division and are produced by the electric arc method as
opposed to the basic oxygen steelmaking method in the United Kingdom at Rotterdam.

Pricing Strategy: A pricing strategy must be conceived in relation to overall business objectives
and marketing strategy. The success of any business depends upon a blend of long run profit, growth
and survival objectives. Price, because of its influence on unit sales volume and profit margins,
affects long run profit objectives. And maintaining profitability through sound pricing practices is
necessary to ensure the firm’s survival over time. The pricing strategy adopted by Tata Steel is the
Market Penetration Strategy. This strategy is based on the assumption that demands for the product is
highly elastic. By setting relatively low-price Tata Steel has managed to obtain large market share.
The advantage of this kind of pricing is that it discourages competition since there is less opportunity
to reap unusual benefits on investment. Since Tata Steel is in control of large iron ore deposits it has
increased its capacity manifold and so enjoys economies of scale. It has thus maintained prices of its
products lower than of its competitors and has increased the scale and efficiency of operations, since
it has lower production costs.

Placement Strategy: Placement of a product represents the location where a product can be
purchased. But in industrial marketing place is often referred to as the distribution channel.
Distribution channels at Tata Steel:
1) Direct supply channels,

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Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

2) 21 stockyards,
3) 25 consignment agents,
4) 15 external processing agents
TATA Steel main distribution channel is selling branded steel through M-junction. It provides
cutting edge of Information Technology, is a 50:50 venture of SAIL and Tata Steel. It is India's
largest e-Commerce company and the world's largest e-Marketplace for steel. M-junction offers a
wide range of selling, sourcing and knowledge services that empower businesses with greater
process efficiencies. Tata Steel initiated the first online e-Sale through M-junction in the month of
February 2002 and since then has sold 221,259 MT. The products that Tata Steel has sold through
M-Junction are: HSM Defectives, HSM POR, GP Coils, LP Defectives, Prime Billets and Secondary
Products. The results have been extremely encouraging for Tata Steel, with products being sold to
customers all over the country. The prices obtained by M-junction have been reflective of the market
situation. The entire cycle time of selling materials has been reduced by the speed and efficiency
with which on-line competitive bidding events has been created and managed by M-junction.
Through intensive market-making efforts and the use of technology, it is bringing in both, greater
efficiencies to processes and greater focus to the sale of non-core products of Tata Steel.
Full Service on a business process outsourcing (BPO) mode Mjunction.com takes end-to-end
responsibility of selling client's low 'value' and/or standard products. It undertakes market research
and market-making activities to generate buyer leads. It also creates suitable market lots to ensure
maximum participation from buyers. Some of the other services provided by M-junction are
conducting auction event fulfillment services, undertaking collection of payments, like earnest
money deposit and principal, ensuring fast and secure handling of money. It has tied up with
Citibank and HDFC Bank for collecting sales tax documents and managing customer complaints.

Promotional Strategy: The promotional program begins with carefully developed advertising
objectives that must be formulated from corporate and marketing objectives in such a manner as to
set the direction for creating, co-coordinating, and evaluating entire promotional program.
Promotional activities undertaken by TATA Steel are: -

Branding Steel Based on Customer Focus: As one of India’s most successful companies, Tata Steel
represents a great example of a strongly branded B2B company. In 2001and 2005, Tata Steel was
ranked the world’s best steel company in studies carried out by World Steel Dynamics Inc., USA
(WSD), a leading steel information service provider.

Branding Steel: The profitability of the steel industry in India is generally linked to business cycles,
reaping profits when economy is going well and eroding them when it is in depression. In the late
1990s, the Indian steel industry was experiencing a glut in the market which strongly affected the
profit margin of all related companies. To reduce its dependence on the external environment
and business cycles, Tata Steel adopted a strategy which stressed the following two points:
1) Branding its products
2) Moving to high value-added products.

The company soon realized that a strong customer focus is essential if any branding approach was to
be successful. It soon began to introduce Internal Campaigns in order to bring the customer-centric

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Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

message to its employees. In the late 1990s, the company launched several Internal Marketing
Programs to emphasize customer focus and service. To achieve this Tata Steel set up a branding task
force in January 2000 to explore the possibilities of branding Tata Steel products. Only three months
later, the task force evolved into a brand management department. Within this department they
created the distinct sub functions market development order generation and order fulfillment which
were computerized, enabling Tata Steel to reduce its customer response time significantly. The
company also initiated the concept of customer account managers who were authorized and
empowered to solve specific customer grievances immediately. The company furthermore sought to
increase customer interaction in order to better understand customer needs and to explore new and
improved ways to meet these needs and expectations. Tata’s second area of key focus was to shift
into the domain of high value-added products. In April 2000, Tata Steel launched its first branded
product, along with the commissioning of its CRM plant.

Tata Shakti is their brand for galvanized corrugated sheets. Eight months later the company
introduced its second brand, Tata Tiscon (re-bars) for rods used in the construction industry. In
February 2003, Tata Steel launched another product brand Tata Steelium. By September 2003, Tata
Steel had three products as well as three generic brands in its brand portfolio.
The leader of the company had decided that branding the commodity steel would provide them a
unique selling proposition in a great way. Branding Steel would help Tata Steel in two big ways:
1) It would help stabilize the flow of revenues even during business downturns.
2) It would make premium pricing possible.

The communication tools used for the brand launches were primarily Print ads Outdoor advertising.
Yet, they also created TV commercials that portrayed signs of happy customers and employees
reveling in the concern the company had for them. ³We also make Steel´ was the punch line that
signaled the triumphant finale of that TV ad. Because of these initiatives undertaken by Tata steel
had put them well ahead of their competitors in promotional activities.
Because the corporate brand Tata was already associated with various products and attributes the
company decided not to put the main focus on it but to create sub brands with separate identities,
supported by the corporate brand as co-driver. They had learned from the European competition that
specialty product offerings and strong brand associations had guarded the market against the low-
cost importers from the Far East.

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Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

Global Management

The Research and Development Division of Tata Steel transformed significantly over the years. It is
known today as ‘Research, Development and Technology (RD&T)’ and operates five research
centres in India, the Netherlands and the United Kingdom. The R&D centre in Jamshedpur, India
focuses on process and product research, with emphasis on the specific needs of Tata Steel’s Indian
operations. The IJmuiden Technology Centre (IJTC) is located on the site of the Tata Steel Europe
works in IJmuiden, Netherlands and focuses on process and product research as well as on
applications research for the automotive and packaging sectors. The main R&D site in the UK is the
Sweden Technology Centre (STC) in Rotherham, South Yorkshire which focuses on product
research and applications research for the transport, engineering and building & construction sectors.
The Teesside Technology Centre (TTC) in Grangetown, Cleveland operates as a satellite focusing on
process and long product research. It also operates a pilot plant for continuous casting. In addition, a
small group of researchers is based in Port Talbot, Wales providing R&D support to Tata Steel
operations in Wales. Automotive Engineering, based at Warwick University in Coventry (UK),
forms a liaison between products.

Europe: In Europe, Tata Steel is amongst the largest steel producers with a crude steel production
capacity of over 12.3 MnTPA. It established its presence in the European continent after acquiring
Corus in 2007. With steelmaking facilities in the UK and Netherlands and downstream plants across
Europe, it supplies high quality strip steel products to demanding markets such as automotive,
construction, packaging and engineering. Tata Steel’s extensive distribution network is the second
largest in Europe. It provides processing, service, distribution and sales support for customers. Tata
Steel’s European operations produce a variety of steels to meet the unique demands and diverse
market of the continent. Placing emphasis on the quality and performance, they ensure that they
deliver the right product and services to build long-term relationships with our stakeholders-
customers. They manufacture a comprehensive portfolio of high-quality strip and long products,
ranging from hot-rolled to metallic coated, pre-finished steels, alloy steels, profiles and construction
systems. They also provide solutions in building envelope, structural, fit-out, foundations and
highway engineering and services through Consulting & Records management. They serve many
markets worldwide, including Aerospace, Automotive, Construction, Consumer Products, Defence &
Security, Energy & Power, Lifting & Excavating and Packaging. 30% of Tata Steel UK’s sales
revenue comes from the construction sector and our Tubes business is a leading supplier of hot
finished and cold formed steel tubular products. Balancing economic prosperity, environmental
responsibility and social benefit, Tata Steel Europe aims to address larger global challenges through
its advanced steel products and efficient production processes.

In 2019, Tata Steel targeted to raise around $7-8 billion from sale of IJmuiden Steelworks in
Netherlands to Swedish steel giant SSAB. According to two sources in investment banking, the due
diligence is reaching advanced stage and the financial offer is expected by January in that year. Tata
Steel Europe is presently looking to decouple the 'problem business' in the UK from profitable
business in the Netherlands as the process will fetch two benefits. The UK government is ready to
support the steel company, but administrators fear that the benefits extended to the UK entity may be
transferred to the Dutch business also. So, the separation of business will help the company receive

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Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

the government aid. Secondly, the buyers don't want to shoulder the struggling business in Port
Talbot, UK. The expectation is for $7-8 billion, but it is not clear whether SSAB would want it as a
discounted purchase because of the prevalent negative market condition in Europe. Materialising the
deal of over Rs 50,000 crore will drastically cut down the net debt of Tata Steel to half from Rs
96,500 crore in September. Tata Steel acquired the European business of Corus Plc for $12 billion in
2007 in an open bid. But the entity has been mostly registering losses since the recession in 2009.
The Key products manufactured in Tata Steel Europe Division are:
➢ Hi-Lite
➢ HILUMIN
➢ XPF
➢ HyperForm
➢ Magi Zinc Auto
➢ Serica
Tata Steel Europe Ltd. manufactures and distributes steel. The Company offers hot-rolled strip,
metallic coated, direct rolled, pre-finished, packaging, plated, and electrical steel, as well as grades,
gauges, and narrow strip products. Tata Steel Europe serves the aerospace, automotive, construction,
defense, energy, and railroad industries throughout Europe.

South East Asia: In South-East Asia, Tata Steel operations began in 2004 with the acquisition of
NatSteel, Singapore. In 2005, it acquired a majority stake in Thailand-based steelmaker Millennium
Steel, which further strengthened its South-East Asian operations. In SEA, Tata Steel plans to
concentrate its efforts in growing its value-added products and services portfolio throughout the
region, while strengthening its key steel operations in Singapore, Thailand and Vietnam. NatSteel’s
product range includes Reinforcement Bars (Rebars) & Wire Rods, Cut-and-bend Reinforcement
Bars, Welded Wire Mesh, Pre-fabricated Cages (Pre-cages), Steel Couplers and Carpet
Reinforcement. NatSteel Holdings is the market leader in construction steel with over 40% market
share and pioneer in driving the adoption of offsite fabricated reinforcement solutions to improve site
productivity and safety in Singapore. In Financial Year 2019 Tata Steel step-downed subsidiary
NatSteel Holdings Pte Ltd (NSH) and executed definitive agreements with Vietnam-based Thai
Hung Trading Joint Stock Company to divest its entire equity stake of 56.5% in NatSteel Vina Co
Ltd (NSV). The agreement for the stake sale was executed on November 4, 2019. The deal size was
Singapore $ 7 million, roughly Rs 36 crore, for 56.5% held by NSH in NSV. The latter had a
turnover of Rs 453 crore and its net worth as on March 31, 2019, was Rs 65 crore, according to the
notification. Vietnam’s Thai Hung Trading Joint Stock Company specialises in three businesses.
This includes production of steel billets, steel formwork, forest products processing and construction.
It is also involved in construction steel, and metal scrap in addition to in education and real estate.
NSH is a wholly-owned subsidiary of TS Global Holdings Pte Ltd (TSGH), which in turn is a
wholly-owned subsidiary of T. Steel Holdings Pte Ltd, a 100% subsidiary of Tata Steel Limited.
The construction projects undertaken by Tata Steel in SEA are:
➢ Knightsbridge Sukhumvit
➢ MRT Project
➢ ICONSIAM
➢ Samyan Mitrtown
➢ MahaNakhon Tower (Bangkok)

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Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

Initiatives to tackle problems incurred by Covid-19 Pandemic

When the pandemic broke out Tata Steel said that it was reducing operations at sites in India and
Europe in the wake of the action taken by national governments to contain the spread of Covid-19.
Since the 21-day lockdown was announced in India, steelmakers such as JSW Steel, Steel Authority
of India Ltd, and ArcelorMittalNipponSteel India have reduced capacity utilisation. Not just in India,
however, but across the globe, producers have reduced operations. On Tuesday, ArcelorMittal said
that in response to decline in industrial activity, it was reducing production and temporarily idling
steelmaking and finishing assets, on a country-by-country basis in alignment with regional demand
as well as government requirements. The overall impact of the present situation on operations and
financials was yet to be assessed, Tata Steel said, but the management was keeping a close watch.

The company said that based on specific guidance and approvals received from the relevant district
administration, mining operations have been operating normally but integrated steel facilities in
Jamshedpur, Kalinga Nagar, Angul (Tata Steel BSL) and Gamahria (Tata Steel Long Products) have
started reducing production levels, and operations in the downstream facilities have been suspended
and put on care and maintenance mode. Tata Steel’s consolidated crude steel production capacity
across its units in India is at around 19.6 million tonnes. The company further said that in view of
restrictions in despatch of finished goods and poor market conditions due to the shutdown of
customer operations in automotive, construction and other segments, shipments to customers have
been curtailed. The company is focused on conserving cash and liquidity and are reducing the cost
base to align with the operating and market situation with strong focus on working capital
management, it added. However, Tata Steel has clarified that all payments to MSME vendors and
contract workers are being done on due dates. The company said that it has taken several initiatives
to ensure that the operations are in a state of readiness to ramp back and serve customers once the
situation improves and normalcy is restored. Tata Metallics, a subsidiary of Tata Steel, had
announced that in view of the practical constraints of continuing operations and despatches and
safety & health of employees and other stakeholders, it was suspending production of pig iron and
DI pipes at its plant in Kharagpur, West Bengal till the situation improved.

In Europe, Tata Steel said that it was currently operating all four blast furnaces at a reduced level
across the two steelmaking hubs – in Ijmuiden in the Netherlands, and Port Talbot, Wales and
despatches to customers is currently continuing at the revised levels. The overall European steel
demand has sharply reduced compared to the normal conditions and many of our customers have
paused production, including European car manufacturers, the company said. Tata Steel Europe has
therefore reduced production at some of the European mills to match this lower demand. The
business is focused on preserving cash and liquidity to tide over the challenging period, the company
added. However, Tata Steel Europe is continuing supply of steel products vital for society, including
for food packaging, where demand has increased for canned food.

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Name/s of the student Vihaan Sachin Vadnere Roll No.3625

In July of Financial Year 2020, Tata Steel had to freeze lateral hiring for the coming months, while it
continues to honour prior commitments made to students on campuses. Campus recruits offered
positions towards the end of last year have already joined the organisation. The first batch of fresh
recruits were onboarded virtually, including around 76 management trainees and close to 150 on the
technical side. A second batch of recruits are due to arrive in August. Due to the uncertainty in the
job market, there has been a greater tendency to look towards further studies rather than pursue a job.
Suresh Tripathi, VP-HRM, Tata Steel said that not many people are looking for a job change right
now. Earlier, they had people joining for a year or two, but now they are opting for higher studies.
They have put a hold on lateral hiring for the moment. However, campus recruits will continue to be
onboarded virtually.

The steel major has now come back to working at 75 per cent capacity at the plants. During the
initial period of nationwide lockdown, workforce capacity at the plants was at 25 per cent. The
number of employees distributed across the plants and mines comes to around 26,000 in total. They
work on a rotational basis with shifts changing every week. Out of the total workforce capacity of
32,000, corporate office employees’ number close to 7000, and currently, all of them are working
from home. The organisation has mandated those employees need not commute to the office, unless
absolutely necessary. The organisation plans to continue operations from home until normalisation
returns. The Company has taken measures beyond the usual SOPs followed by every organisation, to
ensure employee health and safety, in addition to production continuity. On the shop floor, to ensure
minimum transmission of infection, the workforce has been divided into individual groups called
pods. Each pod consists of a maximum of 10 self-sufficient workers across operations, maintenance
and contractors. They do not need to depend on anyone outside the group for any assigned job,
thereby restricting the need for inter-pod communication or contact.

This initiative is active across plants in Jamshedpur, Kalinga Nagar and Angul, where workers have
been divided into hundreds of pods. To reduce the risk of contamination, a 30-minute air gap is
maintained between two shifts. Each group leaves 15 minutes early, post which the area and tools are
sanitised. The next group arrives 15 minutes later and re-sanitises the area and tools. In addition, the
organisation has introduced a real-time workforce-tracking measure through ‘Suraksha Cards’. These
devices are capable of sensing a large group of people gathered at one place and detect violation of
social distancing norms on the shop floor or anywhere else inside the plant premises. For the
employees working from home, learning initiatives have been introduced, in the form of online
course content. Employees have been given the opportunity to learn at their own pace and choice.
There is a lot of activity taking place through online webinars, which are conducted by various
subject-matter experts. The top management interacts regularly with the employees and their
families, and discussions occur where employees voice their concerns. Tripathi adds that he interacts
with employee groups and their families every other day, to find out about their health and
wellbeing.

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Name/s of the student Vihaan Sachin Vadnere Roll No.3625

However, he also mentions that there have been less concerns regarding job security among the
employees. Close to 30 per cent of their employees are now the fifth generation that had been
working in the organisation. On the job security side, employees have remained fairly assured that
there will be no retrenchment. The biggest challenge for the steel industry right now is the market.
There is anticipation of demand hike and huge uncertainty regarding when it will happen. Even if the
demand decreases, production will have to continue. At Tata Steel, during the initial days of
lockdown, when the workforce capacity at the plants fell down below 30 per cent, production went
on, although at a reduced pace. While production of finished goods was put on hold, the semi-
finished material continued to be produced. Finished goods were rolled out later, when the markets
opened up. If a plant goes through an inactive or chill period as we call it, the costs of getting
production to resume are huge. Despite the issues, there has been a huge learning for the industry.
Earlier, it was unthinkable for a steel plant to run from home, but companies have gone ahead and
done it.

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 Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019
Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

Conclusion
After going through the development of this project and application of various strategic concepts on
TATA Steel, the conclusion is TATA Steel being the fifth largest producer of steel in World and may
grow and spread its geographical footprint, embracing different cultures; it will not lose sight of its
great heritage of social and community responsibility. Driven as much by its commitment to society
as by its performance and profits, the Tata Steel Vision aspires to make the Group the global industry
benchmark for both Value Creation and Corporate Citizenship. The key drivers of the Group Vision
will manifest themselves in the goals and objectives the Group sets for itself in the coming years.

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Class TYBA Sem 5 Commerce Assignment RUACOM503 2021-22
Name/s of the student Vihaan Sachin Vadnere Roll No.3625

Bibliography

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2021,https://www.tatasteel.com/rnd/about-us/collaborations.asp

➢ Tata Steel Europe. Tata Steel management activities in Europe. Retrieved July 28th 2021,
https://www.tatasteeleurope.com/ts/about-us/our-strategy

➢ Rakhi Mazumdar.( November 07, 2019). Tata steel firms in South East Asia. Retrieved July
28th 2021, https://economictimes.indiatimes.com/industry/indl-goods/svs/steel/tata-steel-
subsidiary-to-sell-entire-stake-in-southeast-asian

➢ Nevin John.(November 26, 2020). Tata Steel business in Netherlands. Retrieved July 29th
2021,https://www.businesstoday.in/latest/corporate/story/tata-steel-to-raise-7-billion-from-
sale-of-netherlands-business-279724-2020-11-26

➢ TV Narendran. (July 2020). Impact of Covid 19 on Tata Steel Management. Retrieved August
1st 2021, https://www.tata.com/newsroom/

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