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| Q1. |
What were your impressions of Jamshedpur, where all
the civic amenities are provided by Tata Steel? |
| Ans. |
I was fascinated that a steel mill could form the nucleus of
a beautiful city. The Tata Steel Mill is in the heart of the City—much unlike any
other situation globally that I have seen.The City and the Mill seem to work together in
such a positive way that is a real tribute to Tata Steel. I was also surprised to see
female plant workers wearing the Sari clothing in the mill. This contributed to the family
atmosphere. I was surprised to see all the scooters and so many large animals on the busy
streets. My first trip to both India and Jamshedpur was quite a great positive experience. |
| Q2. |
What is it that, in your opinion, makes Tata Steel
one of the top steel manufacturers in the world? |
| Ans. |
Tata Steel is one of the top steel manufacturers in the World
because of its passion for excellence. The Management seems truly dedicated and determined
to meet the expectations of all of its takeholders---employees, shareholders, customers,
community, and others. I could see evidence of the pride and respect in the eyes of the
workers as I toured the mill. In addition to its management and its employees, Tata
Steel is successful because it is a low cost producer, has a good strategy, and is willing
to invest in its people and its facilities. |
| Q3. |
How would you rate Tata Steel’s products and
facilities versus other steel manufacturers? |
| Ans. |
It was interesting to view Tata Steel’s excellent
facilities on my nearly three-hour tour. Tata has made the investment to improve its steel
mill. The mill was very clean and the people were very knowledgeable about their work
responsibilities. Everyone can be proud of the steel mill. I personally have not toured
mills in every country but I was very impressed with what I saw at Tata Steel and it is
clearly a steel Company with great facilities. Regarding the products that Tata Steel
produces, I believe that its customers have responded overwhelmingly with continued repeat
orders. |
| Q4. |
How do ethical values impact a business? |
| Ans. |
I am so pleased that you asked this question since the
highest standard of ethics is critical to the success of a company’s business. Tata
Steel is a renowned global leader in this regard. All of your managers and employees can
be proud of this fact. I worked for one of the best companies in the world for nearly 30
years before taking early retirement and accepting the job as Deputy Secretary General of
IISI. Cargill, Incorporated is the largest food and grain trading company in the world
with over $50 billion in sales and was established in 1865. It also owns the second
largest steel mini-mill in the USA—North Star Steel. Cargill also does not tolerate
any ethics violations and insists on the highest standards of integrity---similar to what
I saw at Tata Steel on my visit. Great companies are built upon a solid foundation of
ethics. High ethical standards produce pride that leads to commitment and then to quality
and to safety and ultimately to profits and success. All Tata employees should be proud of
the Company’s commitment to the highest stand of integrity and ethics. |
| Q5. |
Is steel a sunset industry? What are the likely positive
and negative impacts on the steel industry in the future? |
| Ans. |
Steel is not a "sunset industry." Its future is
very bright over the long term because steel is the most important material for any
developing economy. Of course steel is a cyclical business and tracks economic development
trends. There will be good times as well as not so good times. Remember that after every
"sunset" there will likely be a "sunrise." People make steel…and
good people make up Tata Steel. Companies with good, hardworking, honest, and respectful
employees--as is the case at Tata Steel—will achieve ultimate success. The new trend
towards Sustainable Development will enhance the value and reputation of the steel
industry as we reduce our footprint on the environment. We must continue to work safely to
avoid any negative impact to our industry. |
| Q6. |
Do you believe that international tie-ups among steel
producers to service each other’s customers are good for both companies? |
| Ans. |
International tie-ups or alliances between steel producers or
with customers can be very successful if properly established. There are many
opportunities for international cooperation in the world today. It is so important to
retain the best parts of both alliance companies so that 1 plus 1 equals can be leveraged
into a value of more than just 2. Similar management philosophies and ethics are critical
to success. Likewise there must be good communication and honesty. Good employees make
good companies work successfully together towards common goals. |
| Q7. |
What is the reason that per capita steel consumption is so
low in India? What can change this scenario? |
| Ans. |
I am particularly pleased to answer this question also
because it highlights the great future ahead for India and its steel industry.
India’s per capita steel consumption was only 29 kilograms per capita in 2002
compared to a world average of 150. China improved its steel consumption per capita
remarkably from 103 in 1999 to 163 kilograms per capita in 2002. The same type of growth
could occur in India once the economy can break out of its 5% range to the 7-8% level of
GDP that China enjoys today. Then there would be lots of funds available for basic
steel-intensive infrastructure projects such as bridges, power plants, trains, roads,
commercial buildings, housing, and other infrastructure projects. Steel consumption per
capita has hit a plateau in India since the economy is stuck at the 4-6% level and must
reach the 7-9% level for optimum steel industry growth. The government now seems committed
to more infrastructure spending. The future looks bright for steel in India in my opinion. |
| Q8. |
Do you think that steel companies are a good investment
proposition for shareholders worldwide? |
| Ans. |
Perhaps a better way to ask this question is whether or not I
personally intend to invest in steel companies. The answer is yes. Of course there are
good and bad investment opportunities. Each steel company must be judged on its own
fundamentals and on the geographical and market sector that it serves. Many considerations
must be taken into account such as the opportunity for growth in its home market, its
export opportunities, the possibility to add value and to get paid for it, the
competition, the firm’s capabilities, its key strategy, its facilities, and its
employees. In my opinion, the steel industry has a very bright future in India and Tata
Steel is at the heart of that future. |
| Q9. |
Tata Steel believes in returning to the Community whatever
it takes from it. Do you think that Tata Steel has served its stakeholders
well—shareholders, community, customers, etc? |
| Ans. |
I believe that Tata Steel has achieved the goal of exceeding
the expectations of its Stakeholders. The results show in the success that it has
experienced over the years. I am personally very pleased to have witnessed this wonderful
situation in Jamshedpur. I also had the pleasure of visiting the Center of Excellence
where so much of the history of Tata Steel has been preserved. It was truly one of the
highlights of the visit. I will be anxiously awaiting with very much pride the 100th
Anniversary of Tata Steel in a few years. |
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