"Great companies are built on a solid foundation of ethics"
Mr Daniel L Holy, Deputy Secretary General, International Iron and Steel Institute (IISI) talks to Tisco News on the steel industry, Tata Steel and Jamshedpur. Based in Brussels, Belgium at the headquarters of IISI he was here in Jamshedpur for the Asia Steel International Conference 2003.

 

Your impressions of Jamshedpur, where all the civic amenities are provided by Tata Steel?


DLH: 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. My first trip to both India and Jamshedpur was quite a great positive experience.
 

TN: In your opinion, what is it that makes Tata Steel one of the top steel manufacturers in the world?

DLH: 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 stakeholders. In addition, 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.
 
TN: How would you rate Tata Steel's products and facilities versus other steel manufacturers?

DLH: It was interesting to view Tata Steel's excellent facilities during a nearly three-hour tour. The mill was very clean and the people were very knowledgeable about their work responsibilities. Regarding the products that Tata Steel produces, I believe that its customers have responded overwhelmingly with continued repeat orders.
 
TN: How do ethical values impact a business?

DLH: 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 nearly 30 years for Cargill Incorporated, a $50 billion company, which also owns the second largest steel mini-mill in the USA - North Star Steel. Cargill also insists on the highest standards of integrity-similar to what I saw at Tata Steel. 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.
 
TN: Is steel a sunset industry?

DLH: Steel is not a "sunset industry." Its future is very right 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. The new trend towards Sustainable Development will enhance the value and reputation of the steel industry as we reduce our footprint on the environment.
 
TN: Do you believe that international tie-ups among steel producers, to service customers, are good for both companies?

DLH: 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.
 
TN: What is the reason that per capita steel consumption is so low in India? What can change this scenario?

DLH: 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 breaks 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, which the government now seems committed to spending more on.
 
TN: Do you think that steel companies are a good investment proposition for shareholders worldwide?

DLH: Perhaps a better way to ask this question is whether or not I personally intend to invest in steel companies. The answer is yes. Each steel company must be judged on its own fundamentals and on the geographical and market sector that it serves. In my opinion, the steel industry has a very bright future in India and Tata Steel is at the heart of that future.
 
TN: Do you think that Tata Steel has served its stakeholders well?

DLH: I believe that Tata Steel has achieved the goal of exceeding the expectations of its stakeholders. The results show the success that it has experienced over the years. 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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