1. Tata Steel and its Strategic Vision
Tata Iron and Steel Corporation (TISCO), popularly known as Tata Steel, has been
successful steel maker since its inception in 1907. It is Asia's first and India's
largest private steel company. It is ISO 14001 (a standard certification for
environmental management) and has a state-of-the-art steel manufacturing plant in
Jarnshedpur (located in the eastern part of India).
The Strategic Business Units of TISCO are:
•Bearings Division: This SBU manufactures ball bearings, double row self-
aligning bearings, Clutch release bearings, and tapped roller bearing for two
wheelers, fans, water pumps, etc.
•Ferro Alloys and Minerals Division: This SBU operates chrome mines and
has a unit for making ferro chrome and ferro manganese. It is one of the largest
players in the global ferro chrome market.
•Rings and Agrico Division: This SBU manufactures forged and rolled rings
for bearings and automotive components and hand tools and implements for
application in agriculture.
•Tata Growth Shop: This SBU manufactures equipment ranging from
overhead cranes to high precision components.
•Tubes Division: This SBU is the biggest steel tube manufacturer in the
country.
•Wire Division: This SBU manufactures steel wires in India; it produces coated
and uncoated wires, branded as Tata Wiron.
Tata Steel expanded the production capacity of its 4 million tonne plant in
Jarnshedpur to 5 million in 2005. The company also plans to raise its overall
capacity to 15 million tonnes per annum by 2010 through both organic and
inorganic growth. In 2004, the company invested $486.4 million to acquire
Natsteel, an Indian company located in Singapore. This acquisition gave the
company access to seven high growth markets like Singapore, Malaysia, the
Philippines, Thailand, Vietnam, China, and Australia. NatSteel also serves as a hub
for research and development, engineering, logistics, sourcing and other support
activities for all its locations. Tata Steel has won many laurels for its competencies
like world class technologies (JRD Quality award) and Asia's most admired
knowledge enterprise in 2003 (by Teleos, a South Korean Knowledge management
company).
The strategic vision of the company is to improve the quality of life of the
employees and to improve the businesses they operate in. To realize this vision, the
company has formulated certain strategies:
•To be the lowest cost producer of steel
•Achieve a makeover from commodity seller to brand seller
•Sustain growth
•Enhance relationships with suppliers and customers.