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ByAbhilasha MandaBajrangi Lal Gupta
Sonali Hansda
Saurabh Bhargava
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Indian Scenario
Indias economic growth is contingent upon the growth of the Indian steelindustry.
Consumption of steel is taken to be an indicator of economic development.
India has emerged as the fourth largest steel producing nation in the world,as per the recent figures release by World Steel Association in April 2011.
In 2010, India was the 5th largest producer, after China, Japan, USA andRussia had recorded a growth of 11.3% in steel production as compared to 2009.
Overall domestic crude steel production grew at a compounded annual growthrate of8.6% during 2005-06 to 2011-12.
The Indian steel industry accounted for around 5% of the worlds totalproduction in 2010.
EXPANSION PLANSTotal crude steel production in India for 2011-12 was around 72% million tonnesand its expected that the crude steel production in capacity in the country willincrease to nearly 110 million tonnes by 2012-13. Further, if the proposedexpansion plans are implemented as per schedule, India may becomethe second largest crude steel producer in the world by 2015-16.
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Indian Steel Industry
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Value Chain of the Steel Industry
Stretch 4
Stretch 1 Stretch 2
Stretch 3
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Strategic positions of Players In Value chain
IronOre
Pig IronBilletsHRCoils
CRCoils
Galvanized Steel
Color CoatedSteel
CR(Auto grade) Galume
Precision Pipes
H&T andHTSS
Others
Value Added Steel
ESSAR Steel Ispat
Uttam Galva
Bhushan Steel
SAIL
TATA Steel
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Application of End Products and customers
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Value ChainProcesses
SAIL Tata Steel JSW BhushanSteel
Procurement In-house production In-house Production From thirdparty
In-houseProduction
Technologyand
development
strong in-house R&Dand captive engineeringshops
R&D for product andprocess developmentand innovation along
with 5 global R&Dfacilities
Technologyfollower
Research facilitiesfor limitedproducts
Operations National and GlobalPresence with Integratedand special steel plantsRegulated by theGovernment
A balanced globalpresence in over50 markets andmanufacturingoperations (incl.downstream) in 263
international locations
Nationalpresence andexports to 70countries.Supplies directlyto OEMs
Strong RegionalPresence close toits customer base
Marketingand Sales
sells both toGovernment and privateentities.SAIL has a country widenetwork of dealers; It istrying to get close toindividual consumer by
APNA SAIL SHOP
Customization level isvery high fromautomotive toconstruction sectoretc.
Marketing andDistributionCentres in mostof the Indiancities
Distributioncenters acrossmajor IndianCities
VALUE CHAIN DIFFERENCES:
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Vision Statements
Company Name Vision Statement
Tata Steel Our vision is to be the global steel industry benchmark
for value creation and corporate citizenship.
Steel Authority India Ltd To be a respected world class corporation and the leaderin Indian steel business in quality, productivity,profitability and customer satisfaction
Bhooshan Steel Ltd Strive to develop Synergy of Products, Processes &
Systems.
JSW Steel Ltd Global recognition for Quality and Efficiency while nurturingNature and Society.
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Business Models of some Major
Players
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Business model for JSW Steel
JSW steel follows the Disintegrate process and Integrate approach to achieve aefficient business model.
JPOCL/BOC Tie up
for
Oxygen
JEL Tie Upfor Power
VMPL/NDMC Tie up
for Iron
Ore Supply
SWPL 5MPTA
PORT AT
GOA
JSW SteelLtd
Integrated
Operations
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Tata Steel
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Strategy of Tata Steel
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Steel Authority of India Ltd
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Strengths
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TechnicalCapabilities
Product
Platforms
ProcessPlatforms
Appropriation
Deployment
In products
Deployment inValue chains
Create Change the rules Support ExistingFundamentally of Rivalry BusinessNew business
Business Strategy Technology Strategy
RESOURCE
COMMIT
MENTS
19
Technology Business Linkage of players
Tata Steel SAIL Bhooshan Steel JSW
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Cost Comparisons of Treated Steel
Products
HRC is Hot Rolled Coils
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Thank you
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Appendix
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Mission Statement
Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives to strengthen Indias industrial base through the effective utilization ofstaff and materials. The means envisaged to achieve this are high technology and productivity, consistent with modern management practices.
Tata Steel recognizes that while honesty and integrity are the 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 that it does in an atmosphere free from fear, and thereby reaffirms its faith in democraticvalues.
To achieve reliability, performance & production of our Products, at a Price that exceeds the aspirations of the Customers. At the same time
developing Systems & Employees to achieve it.
Supporting India's growth in Steel Domain with speed & innovation .