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Before we discuss at the length of the company, we would like to throw some
light on the Tata Group of companies in present day India.
Tata Steel is one of the ventures of the Tat Group but it has many successful
companies under one umbrella. Some of the other notable Tata concerns and
their lines of businesses are shown below.
COMPETITION
Tata Steel is undoubtedly the best steelmaker in the wrold. It produces the
cheapest and best quality of steel in the world. In the last seven years the
position of Tata Steel has reduced drastically because of Corus acquisition.
The results of the acquistion will be profitable after 2010.
Corporate profile
Essar is a multinational corporation with annual revenues of US$39
billion and investments in Steel, Energy, Infrastructure and
Services. With operations in more than 29 countries, it
employs over 60,000 people.
Essar began as a construction company in 1969 and has diversified into
manufacturing, services and retail over the years since then. Over the last
decade, it has grown through strategic global acquisitions and partnerships,
or through greenfield and brownfield development projects, capturing new
markets
and
discovering
new
raw
material
sources.
Today, Essar continues to expand its global footprint, focusing on markets
in Asia, Africa, Europe, the Americas and Australia. Essar invests
significantly in the latest technology to drive forward and backward integration in its businesses,
and on leveraging synergies between these businesses. It also focuses on in-house research and
innovation to be a low-cost manufacturer with high-quality products and innovative customer
offerings.
Essar Global Fund Limited (Essar Fund) is an investment fund managed by its investment
manager Essar Capital Limited. The Fund is a global investor, controlling a number of worldclass assets diversified across the core sectors of energy, metals and mining, infrastructure
(comprising ports and EPC businesses) and services (primarily comprising shipping and BPO
businesses). The aggregated revenues of the Funds portfolio companies total US$35 billion. The
Funds portfolio companies employ over 60,000 people across 29 countries, and have adopted
international standards of health, safety, environmental protection and corporate governance.
Alongside its ambitious business pursuits, Essar has been committed to its social responsibility.
The company runs community outreach initiatives at all of its plant locations, with a focus on
education, healthcare, environmental and agricultural development, and self-employment. Essar
is committed to sustainable business practices. Its Health, Safety and Environment (HSE)
management system is on par with global standards.
The company is also actively undertaking climate change initiatives to reduce its carbon
footprint. This includes several Clean Development Mechanism (CDM) projects that earn the
company 'Certified Emission Reduction' credits. A growing number of its businesses with new
businesses joining the list every year are certified to international environment standards,
including ISO 9001 /14001, and health and safety standards, such as OHSAS 18001.
Essar is widely regarded as a responsible and conscientious global employer. It has experience in
managing businesses in different geographies with a culturally diverse workforce. This is why its
people practices are sensitive to cross-cultural nuances. The company's people strategy is
focused on promoting a learning culture that continually enhances the professional skills of its
employees.
A look at Essar's areas of business:
Steel
Essar has a significant global presence in steel and an international portfolio of iron ore and coal
mines.
Essar Steel is a global steel producer with a footprint in India, Canada, USA, the Middle East
and Asia. It has an annual capacity of 14 million tonnes, and aims to achieve a global capacity of
20-25 million tonnes. It has a significant presence in the key markets of Asia, Europe, Africa and
North America. The company has specialized plants for value-added steel products such as pipes
and plates and has a leadership position in the cold rolling, galvanizing and pre-coated segments.
Essar Minerals owns a growing portfolio of iron ore and coal mines in India, Indonesia,
Mozambique and the USA. It also has an iron ore prospecting license in Brazil and various states
in India. The company has access to over 1.6 billion tonnes of iron ore reserves and 450 million
tonnes of coal reserves.
Energy
Essar Energy is a world-class, low-cost, integrated energy company focused on India and
positioned to capitalize on India's rapidly growing energy demand. We have an established trackrecord and assets worth US$12 billion across the power and oil and gas industries. The combined
assets of Essar Power and Essar Oil constitute Essar Energy.
Essar Oil is a fully integrated oil and gas company of international scale with a strong presence
across the hydrocarbon value chain from exploration and production to oil retail. The company
has access to a global portfolio of conventional and unconventional, onshore and offshore oil and
gas blocks, with about 35,000 sq km available for exploration. The company is also the largest
coal bed methane (CBM) player in India. Currently, Essar Oil India has over 405,000 barrels per
stream day (bpsd) of crude refining capacity at Vadinar in Gujarat, India.
Essar Oil UK, which operates the 296,000 bpsd refinery at Stanlow in Cheshire, United
Kingdom,
meets
15%
of
UKs
auto
fuel
demand.
Essar Oil has over 1,400 Essar-branded oil retail outlets in various parts of India. Essar has also
embarked upon entering the African retail market by opening its first retail outlet in Kenya.
Essar Power is among India's top private sector power producers with a current generation
capacity of 3910 MW spread across eight power plants in India and Canada.
It is one of the lowest-cost power producers and owns about 500 million tonnes of coal reserves
and resources in blocks spread across four continents.
Infrastructure
Essar has a strong foundation in infrastructure projects, with proven capability in managing ports
and handling large, complex engineering, procurement and construction projects.
Essar Ports is one of the largest owners and operators of ports in India. The company has an
existing aggregate capacity of 104MMTPA across three facilities located at Vadinar
(58MMTPA), Hazira (30MMTPA) and Paradip (16MMTPA) in the state of Gujarat and Odisha,
on the west and east coast of India. It is currently in the process of increasing its aggregate ports
capacity to 194MMTPA at a number of locations across India.
Essar Projects is the second largest engineering, procurement and construction (EPC)
companies in India. Its EPC capabilities have helped build all of Essar's industrial assets in India
in the sectors of steel, oil and gas, power, and ports and terminals. The company is increasingly
using its expertise to execute large external projects across the world.
Steel
SEAMLESS INTEGRATION
A major strategic advantage is our high level of forward and backward integration. We are totally
integrated from raw material to finished products adding value at every stage of the
manufacturing process. Our areas of operation include:
Iron ore beneficiation
We have an 8 MTPA plant at Bailadilla (Chhattisgarh) and a 12 MTPA plant at Dabuna (Odisha),
both strategically established to leverage the rich iron ore deposits of the respective states. The
plants pump the iron ore slurry to Essar Steel pellet plants at Visakhapatnam (Andhra Pradesh;
267 km pipeline) and Paradip (Odisha; 253 km pipeline) respectively.
Pelletization
We have an 8 MTPA pelletization plant at Visakhapatnam and a 6 MTPA pellet plant at Paradip,
both of which provide vital raw material to our steel plant at Hazira (Gujarat).
Iron and steel
We have a fully integrated world-class facility at Hazira, housing the world's fourth largest
single-location steel plant. It has a steel-making capacity of 10 MTPA, holds ISO: 9001:2000, IS
9002 and TUV, and ISO 140001 certification and is India Chiller Energy Efficiency Project
(ICEEP) Protocol compliant.
The facility also houses a 6.8 MTPA sponge iron plant (the world's largest gas-based sponge iron
plant in a single location); a 1.5 MTPA plate mill (the largest in India); a 0.6 MTPA pipe mill
with with internal and external coating facilities of up to 2 million square meters annually; and a
1.4 MTPA cold rolling complex comprising two galvanizing lines, a batch annealing furnace and
a skin pass mill.
Steel processing
We have a downstream capability hub at Pune (Maharashtra),which houses a 0.6 MTPA cold
rolling plant, a 0.5 MTPA galvanizing plant, a 0.4 MTPA color coating plant, and a 0.65 MTPA
pickling line.
Our history
Since its inception, ArcelorMittal has rapidly grown through a successful consolidation strategy
with a number of significant acquisitions
ArcelorMittal is the successor to Mittal Steel, a business originally set up in 1976 by
Mr Lakshmi N Mittal, chief executive officer and chairman of the board of directors.
ArcelorMittal was created through the merger of Arcelor and Mittal Steel in 2006.
Mittal Steels rapid growth since 1989 has been the result of combining a successful
consolidation strategy with a number of significant acquisitions.
Since setting up operations in Trinidad and Tobago in 1989, some of its major acquisitions are
Siderurgica del Balsas (Mexico) in 1992, Sidbec (Canada) in 1994, Karmet (Kazakhstan) and
Hamburger Stahlwerke (Germany) in 1995, Thyssen Duisburg (Germany) in 1997, Inland Steel
(US) in 1998, Unimetal (France) in 1999, Sidex (Romania) and Annaba (Algeria) in 2001, Nova
Hut (Czech Republic) in 2003, BH Steel (Bosnia), Balkan Steel (Macedonia), PHS (Poland) and
Iscor (South Africa) in 2004, ISG (US), Kryvorizhstal (Ukraine), as well as a significant interest
in Hunan Valin Steel (China) in 2005, and three Stelco Inc. subsidiaries (Canada) in 2006.
Arcelor was created in February 2002 through the merger of Arbed (Luxembourg) founded in
1911, Aceralia (Spain) and Usinor (France). Arcelor also had major steel production facilities in
Belgium, Germany, Italy, Brazil and Argentina.
Arcelor acquired a controlling interest in Companhia Siderurgica Tubarao (now a part of
ArcelorMittal Brasil) in 2004, Huta Warszawa (Poland) in 2005, a controlling interest in Sonasid
(Morocco), as well as Dofasco (Canada) in 2006.
At the time of the merger with Mittal Steel, Arcelor was the second largest steel producer in the
world.
In 2007 the newly merged ArcelorMittal continued to pursue an expansive growth strategy, with
35 transactions announced worldwide.
At the beginning of 2008 ArcelorMittal continued to make investments, with significant
transactions announced in Australia, Brazil, Canada, Costa Rica, France, Russia, South Africa,
Sweden, Turkey, United Arab Emirates, the US and Venezuela, the majority of which were
completed. But in light of the deteriorating economic situation during 2008, ArcelorMittal
suspended most investment activity by the end of the year.
Post-crisis, ArcelorMittal has cautiously restarted certain projects to capture growth in key
emerging markets and mining. Capital expenditure on mining doubled in 2011 to almost US$1.3
billion, as the group embarked on a major development programme aimed at expanding existing
mines and developing new ones.
ArcelorMittal has put considerable emphasis on growing its mining business. The company is
making continued progress on the plan to increase iron ore production capacity from 56 million
tonnes in 2012 to 84 million tonnes in 2015 in the company-owned mines.
This year ArcelorMittal has re-started a number of steel development projects, including the
optimisation of the galvanizing operations in Dofasco, the first phase of the Monlevade
expansion in Brazil, as well as further investment in Juiz de Fora to raise melt shop and rebar
capacity. In Argentina, a construction of a new rolling mill was announced.
Recently, ArcelorMittal, together with its partner Nippon Steel and Sumitomo Metal, acquired
ThyssenKrupp's Calvert facility in the US. This is a strategic acquisition for ArcelorMittal,
demonstrating the companys industry leadership and continued ability to capture valueenhancing opportunities.
Leadership at ArcelorMittal
Leadership is an integral part of ArcelorMittal: it is one of our three core values of sustainability,
quality and leadership, which shape every aspect of our corporate behaviour and help us meet
our promise of transforming tomorrow.
Our leadership position in the steel industry is the result of a consistent management strategy that
focuses on product diversity, geographic reach and diversification we are industry leaders in
terms of new technology, sustainability and corporate responsibility.
We are also leaders internally, in our efforts to improve health and safety, training,
competitiveness and employee engagement.
Every organisation needs leadership at every level. We believe leaders should inspire,
influence, motivate and engage people. Leadership should inspire our employees to work at a
level that they would not normally reach or go to on their own.
The next generation
To safeguard the future of ArcelorMittal, we are committed to developing the next generation of
leaders through initiatives such as ArcelorMittal Universitys leadership academy and the global
employee development programme (GEDP)
We want to ensure there is a succession of motivated employees capable of becoming the next
generation of leaders, together with a diverse and highly skilled workforce that can help us meet
our business and organisational needs around the world.
We strive to improve management and leadership capabilities from within, and create
opportunities for those employees who have been identified as future leaders through
professional and personal growth. This means providing inspiring and effective leadership, open,
transparent communication and excellent learning and development opportunities.
As part of our leadership role, we also recognise that the company has a duty to its stakeholders
to operate in a responsible and transparent manner and to safeguard the wellbeing of all its
stakeholders, including employees, contractors and the communities in which it operates.
Through good leadership, we aim to nurture a culture that values, recognises and rewards
individual performance.
3,700 acres (15 km2) of land. It is just 340 kilometres (210 mi) from Bangalore, and is well
connected with both the Goa and Chennai Port. In 2005, JISCO and JVSL merged to form JSW
Steel Ltd.
JSW Steel has also formed a joint venture for setting up a steel plant in Georgia. The Company
has also tied up with JFE Steel Corp, Japan for manufacturing the high grade automotive steel.
The Company has also acquired mining assets in Republic of Chile, United States and
Mozambique.
History
In 1994, Jindal Vijayanagar Steel (JVSL) was set up with its plant located at
Toranagallu in the Bellary-Hospet area in the State of Karnataka, the heart of
the high-grade iron ore belt and spread over 10,000 acres (40 km2) of land.[6]
over a decade. It also set up a plant at Salem with an annual capacity of 1
million tonne. It is on the threshold of a major expansion plan of adding 3.2
million tons per annum to its at Vijayanagar Plant to achieve 11 MTPA by
2011. It has established a strong presence in the global value-added steel
segment with the acquisition of a steel mill in US and a Service Center in
United Kingdom. JSW Steel has also formed a joint venture for setting up a
steel plant in Georgia. The Company has further acquired iron ore mines in
Chile and coal mines in USA & Mozambique.The current manufacturing
capacity of company is 14.3 MTPA. [7] In Aug 2014, it acquired Welspun
Maxsteel Ltd in a deal valued at around 1,000 Crores. [8] JSW has already
acquired 3 MTPA Hot Rolling Plant in Dolvi maharashtra ( earlier named Ispat
Industries Ltd).
Facilities
Vijayanagar Works
Indias first 10 MTPA steel plant at single location, the fastest growing steel plant in India. The
JSW Steel Vijayanagar plant is the first integrated steel plant to reach 10 MTPA capacity in a
single location. It is the first in India to use the Corex technology for hot metal production.Now
other steel plants are coping the same.
The first hot strip mill at Vijayanagar was commissioned in 1997. Since then it has grown
exponentially and now has an installed capacity to produce 10 MTPA of steel. Located at a
remote village Toranagallu part of under developed North Karnataka in the Bellary-Hospet iron
ore belt of Karnataka, the fully integrated steel plant, is well-connected with both the Goa and
Chennai ports.
Unique features:
Regarded as the worlds Corex showpiece; it was the first Greenfield project in India and
among the first in the world to have successfully used this technology to produce green
steel
Houses Indias largest blast furnace and the widest hot strip mill
The only plant in India with pair-cross technology and twin-stand reversible cold-rolling
mill
The highest productivity steel plant in India, producing 800-plus tonnes per person per
annum
Recognized for its zero-effluent discharge status; it reuses more than 95 per cent of
process waste
Low carbon footprint as it recycles 96% of coke oven gas for power generation
Uses sophisticated ambient air control infrastructure beyond and has reduced gas flaring
to lower levels.
MANAGEMENT EFFICIENCY
The structure of the Board was recently modified in 2007 post the acquisition
of Corus acquisition to suitable incorporate changes which will lead to the
adequate realization of synergies from the deal within the given stipulated
time frame to reap the benefits from the much talked about and criticized
deal.
BOARD
DIRECTORS
OF
14 Board of Directors
8 independent, 6 non
independent
No
of
independent
directors is more than one
third of total number of
directors.
LEGAL ENVIRONMENT
Global operations require compliance with multiple and complex laws and
regulations. In countries where the political systems are still evolving,
frequent changes in economic policy are common, investment guarantees
and property rights are secured, any unforeseen changes can expose the
Groups businesses to uncertainties. The Group operations are primarily in
countries where investment flows are freer and where there are established
political, business and legal frameworks in place. There is an established due
process to independently evaluate country risk exposures for investments in
emerging economies
Indian
steel
production has increased by 5 million tones every year. The economic
reforms initiated by the government since 1991 have added new dimensions
to industrial growth in general and steel industry in particular. Steel industry
has been removed from the list of industries reserved for the public sector.
Automatic approval of foreign equity investment up to 100% is now
available. Price and distribution controls have been removed from January
1992, with a view to make the steel industry efficient and competitive.
Company
The year 2008-09 was a historical one epitomised by the acute global
financial imbalance which initially appeared to have spared India only to
impact the markets adversely as the year rolled on. The global economic
slowdown has impacted the steel sector as well. Amidst the turmoil in the
global marketplace, Jamshedpur Works performed remarkably creating many
records on the way.
Indian operations witnessed a less pronounced drop in demand of 11% in the
third quarter, reflecting the reduced activity in infrastructure and commercial
vehicles. Steel is required by various industries as an important raw material
constituent.
Tata Steel has taken aggressive steps to meet the challenges
difficult times through major initiatives in cost reduction,
improvement and production rationalisation. The highest priority
given to expanding steel producing capacity in Jamshedpur, and
of these
process
is being
ensuring
raw material security for the European operations which do not have captive
iron ore and coal resources. The Tata Steel Group has developed a pipeline of
high quality projects, which will be executed, though we will re-phase the
sequence. Projects like the 3 million tone expansion in Jamshedpur, the
proposed steel plant in Orissa and raw material projects in Mozambique,
South Africa and Canada are key drivers of our future value creation.
FinancialAna
lysis
ASSET SIDE
Capital budgeting
The ratio required to calculate
capital budgeting is mainly DebtEquity
ratio.
Tata
steel
has
increasing debts. So the company
has gone in for debt financing and
thus, the company is having a
comparatively higher borrowing
from the market. Basically the DebtEquity ratio has to be as high as
possible so that the company has
lower borrowings and has to pay less interest.
Tata steel has increasing debts. So the company has gone in for debt
financing and thus, the company is having a comparatively higher borrowing
from the market. Basically the Debt-Equity ratio has to be as low as possible
so that the company has lower borrowings and has to pay less interest.
INVESTMENTS
It can be seen that investments in the last year has increased drastically
from negative cash flows to positive cash flows in investment. This was
result of investing subsidiary companies especially Tata Steel Holdings PTE. It
Cash management
This requires cash ratio, which
includes cash and cash equivalent /
current liabilities. Over years this
company has managed to keep up
their cash management at par with
other companies. In recent times this
company has raised their cash ratio
as compared to previous years.
Debtors Management
This requires Debtors turnover ratio
which is calculated by, Debtors/Sales.
This ratio has to be as low as possible
so as to gain maximum liquidity for
the company. This means that the
debtors will return money in these
many days.
Tata steel took over Corus in recent
past and had taken a loan for that
purpose and due to this loan their
Debtors turnover ratio just shot up from 29.81 to 33.45.
Inventory Management
We get inventory turnover ratio by,
Cost of Goods Sold/Average or
Current
Period
Inventory.
High
turnover ratio is usually beneficial for
any company as products tend to
deteriorate as they are kept in a
warehouse.
Tata steel has managed to keep their
inventory management very efficient
during these years as we can see
below that it keeps on increasing and
LIABILITIES
1.SHARE CAPITAL
EQUITY CAPITAL
Over the years the company has been increasing its income in share
premium account, through conversion of warrants and preference
shares.
SECURED LOANS
Debentures
Tata Steel placed Non-Convertible Debentures totaling upto Rs. 2,000
crore in May 2008 comprising of 3 series having phased maturities.
The Company further raised a 2-year term loan of Rs. 2,000 crore in
May 2008. In November 2008, the Company raised Rs. 1,250 crore
through Non-Convertible Debentures privately placed with the Life
Insurance Corporation of India, repayable in equal installments at the
end of the 6th, 7th and 8th years.
In April 2009, the Company further raised Rs. 2,000 crore from a term
loan and in May 2009, it privately placed Rs. 2,150 crore of NonConvertible Debentures repayable after 10 years. Thus the Company
raised Rs. 9,400 crore in a year marked by tight liquidity.
The
Company entered into a loan agreement with the State Bank of India and
other banks for Rs. 9,500 crores. In January 2008 Rs. 9,000 crores was repaid
with proceeds from the Companys Rights Issue and Rs. 500 crores was
repaid on 28th February, 2008. In November 2007, the Company made a
rights issue offering to shareholders in India, (i) 1 ordinary share for every
five ordinary shares at a price of Rs. 300 per share and (ii) 9 cumulative
compulsorily convertible preference shares (CCPS) for every 10 ordinary
shares at a price of Rs. 100 each.
Unsecured Loans
In the year 2008, Tata Steel raised $500 million equivalent seven-year senior
unsecured bank loan facility in yen to fund production capacity expansion
and also acquisitions.
CURRENT LIABILITIES
The current liabilities increased by Rs. 577 crores from a level of Rs. 3,523
crores as on 31st March, 2007 to Rs, 855 crores as on 31st March, 2008. The
increase was mainly due to increase in the value of purchases/services on
account of expansion projects.
I.
Gross Profit
Year
2008-09
2008-07
2007-06
Amount (Rs in
Crs)
9778.51
8830.00
1497.81
The Gross Profit has increased over the period of 3 years however the
change in Gross Profit from 2008-09 and 2007-08 was less as compared to
2006-07 and 2007-08. The Graph shows the increase in Gross Profit 2006-07
to 2008-09.
2008-09
2008-07
2007-06
8289.01
7900.97
7080.94
The Profit before depreciation and Tax increased at a rate of 11.84% from
2006-07 to 2007-08 and 4.91% from 2007-08 to 2008-09. The fall in the
PBDT was mainly due to the market crunch and global recession which left
its a mark on the companys Financial Statements. However it was
observed that the companys Profits after depreciation and tax followed a
stable increase i.e. an average increase of 11%.
Gross Profit Margin
The GP Margin for 2006-07 was 7.58% followed by 39.79% in 2007-08 and
36.43% in 2008-09.
Depreciation:
Capital Assets whose ownership does not west in the company is depreciated
over the estimated useful; life or five years whichever is less.
In respect of other assets depreciation is provided on a straight line basis
applying the rate specified in Schedule 14 to the Companies Act 1956 or
based on estimated useful life whichever is higher. However, asset value up
to Rs 25000 is fully depreciated in the year of acquisition. The details of
estimated life of each category of assets are as under:
Building 30 60 years.
Plant & Machinery 6 21 years.
Railway Sidings 21 years.
Vehicles and Aircrafts 5 18 years.
Furniture, Fixture & Office Equipments 5 years.
Intangibles (computer software) 5 10 years.
Development of property for development of mines and collieries
are depreciated over the useful life of the mine or lease period
whichever is less, subject to a maximum of 10 years.
Blast furnace relining is depreciated over a period of 10 years
(average expected Life).
Total depreciation for the Financial Year 2006-07 accounted to Rs. 819.29 crs
followed by Rs. 834.61 crs in 2007-08 and Rs. 973.40 crs in 2008-09.
II.
FINANCIAL RISK
TAX AND INTEREST RATE ANYALSIS
From the above balance sheet Interest charged in 2008 is 41,493 (Rs
mn) and in 2009 it decrease to 38,283 (Rs mn) i.e. Change of -8.4%.
Tax charged in 2008 was 40,493 (Rs mn) and in 2009 it decrease to
39,751 (Rs mn) due to decrease in gross profit.
Finance for the Corus acquisition was raised through bridge loans and
later refinanced by Tata Steel which has led to a dramatic increase in
the interest outflow; in the April-June quarter the interest outflow was
Rs241.7 crore compared to Rs41.6 crore for the same quarter last year.
Dividend Policy
Tata Steel has been continuously providing dividend to its shareholders to
maximize its wealth. In the year 2008-09 the company paid a dividend of Rs
1168.95 crores. The payment of dividend is always fixed by the company
irrespective of profits or losses.
Tata Steel is giving a significant higher rate of dividend year after year in
comparison to its nearest competitors.
In 2006-07 the year the company completed 100 years a dividend of 25%
was issued to the shareholders.
Tata Steel was initially giving higher amount of dividend initially on its PAT.
But over a period of time, it decided to change its strategy and putting back
all its earnings on development of the company.
FINANCIAL RATIOS
Ratio Analysis
Operating expenses are expected to increase marginally resulting in increase
of EBITDA margin of 38.7%.But compared to previous year the
EBITDA/Turnover has reduced because the profits were higher than last
years.
ROCE over the years has reduced because of slowdown as well as huge
inventories of stock and new plants introduced in Jamshedpur.
Asset Turnover is very good In last four years the assets were utilized to the
fullest but in the last year due to less demand, it reduced by 1%, but in
overall terms it is optimally used all resources.
Tata Steel over the years has been increasing its debt in order to
finance the Corus deal. They took a loan of $ 8 Billion from the bank to
acquire Corus.
Current Ratio
The current ratio is a financial ratio that measures whether or not the
firm has enough resources to pay its debts over the next 12 months. It
compares a firms current assets to its current liabilities. Tata Steel has
a high amount of unutilized current assets. The company has high level
of inventory or WIP. Since the demand for steel has reduced drastically
the company is having huge inventory and because of this the liquid
ratio is low.
Future Prospects
The Company has embarked upon setting up three green field steel plants in
eastern India:
12 MTPA* plant in Jharkhand
6 MTPA plant in Orissa
5 MTPA plant in Chhattisgarh
Jamshedpur Steel Works will become a 10 MTPA unit by 2010.
*MTPA = million tonnes per annum
Solution for Sales (SFS) offers based on the Theory of Constraints (TOC)
concept saw stabilisation in the steel division. The replenishment module
was extended to cover 100% of the retail channel of TATA TISCON, achieved
90% coverage in TATA SHAKTEE and 60% in TATA Steelium. This resulted in a
reduction of stock outs in retail shops and more significantly, a reduction in
channel stocks. Reliability solutions were extended to direct customers in
the Steelium distribution. For the Construction Projects segment, an S-DBR
(Simplified Drum Buff er Rope) mechanism was implemented under the
Theory of strains supply chain improvement initiative which improved the
availability of rebars at the warehouses, thereby reducing instances of
delays and loss of orders.
The term focus is on the implementation of the Fit for Future restructuring
in Europe, to continue with the 3 mtpa expansion project in Jamshedpur and
overseas raw material projects, to increase production volume in India and
optimise working capital management across the Group to preserve liquidity
Looking towards the future, the steel industrys main contribution to the
reduction of CO2 emissions should be to further develop the use of byproducts and to work with its customers to help design well, long lasting,
more energy and material efficient products. Additionally, improvements in
areas other than primary steel production may offer further opportunities for
CO2 reduction.
OBJECTIVES
Every human effort should have pre-determined objective. I
conducted my survey of
RESEAR
DOLOGY
R ES EAR CH METHO
M ET HODO
LOGY
Introduction
Research Methodology is a way to systematically solve the
research problem. Research in commonplace refers to a search of
knowledge. Research is an original contribution to the existing state of
knowledge making for its advancement. The role of research in several
fields of applied economics whether related to business or economy as
a whole has greatly increased in modern times.
Firstly we should know what is a research methodology. Every
project repeat conducted scientifically had specified framework for
controlling data collection. This framework is collect research design
accurately and economically. There are generally two types of research
design: 1. Exploratory
2. Conclusively Research.
These types of research design used in this project are exploratory.
Exploratory research is that in which new relationship, are
discovered, and looking to the objective of the research that is
finding out the most dominant attribute and also the market leader
in respect to brand vs price.
Data collection Method
Primary Data
These are the datas which are not readily available to the user or
researcher but these datas has to be collected by some one
primarily for their own use. They are specifically collected for certain
research.
Secondary Data
FINDING
S & CONCLUSION
FINDINGS
As various companies enter into market so it is difficult to make
availability of way brand.
Now a-days customer loyalty has been decreased as some Asian
Paints product is having good quality but high price or vice-versa.
So it is difficult to find locating among customers.
Sagar is small city & there are not many dealers & service
centers of the company.
Mostly middle class people live in sagar so it is difficult to sell
costly Asian paints Products..
As this project is based on A top five brands of steel
information was gathered through simple conversation with the
customers & the dealers. I came to the following conclusion: The interpretation shows that there is no doubt that the purchasing
behaviour revolves around the what, why, when, how questions? As people
differ not only is usual ways but also in their activities preferences and
opinions. However there are some failures succeed in effecting the consumer
behaviour.
LIMITATION
Nothing in this world is perfect. Everything has its limit, so has
this survey. The main limitations encountered are: It is sample survey and sample taken randomly and has
covered limited number of respondent.
It was hard to gather all information about project from
Internet due to some technical problem.
Time is short to carry out the survey is more detail as well as
with more respondent.
Tata steel is more popular in number and same brand of steel
are popular in Sagar City.
The respondent was unwilling towards the questionnaire.
Some time people take it as a fun and do not provide correct
information.
Respondents are unable to understand the questionnaire &
also they are not able to express their view. At most of them
do not understand English language.
Supervision method is time consuming, irregular & expensive.
SUGGESTIONS
sales
promotion
policies
&
strategies
are
very
BOOKS:
MARKETING MANAGEMENT -
V.S. Ramaswamy,
S.Namakumari
RESEARCH METHODOLOGY -
C.R.Kothari
OPERATION RESEARCH -
Vittal
Web Resources:
www.google.com
www.scribd.com
www.tatasteel.com
www.jsw.in
www. arcelormittal.com