Nature & location of outsourced operations:
Procurement Division of Tata Steel deals with all inbound and outbound supplies of goods and services. The service providers include both indigenous and foreign source including government / semi-government agencies. The details on nature and location of inflow and outflow of goods and services are as under;
Nature of outsourced operations Location (not exhaustive list)
Inbound supplies of goods like Mechanical and electrical spares Jamshedpur & Kolkata (majority), Mumbai.
Process, Operating and General Consumables Bangalore, New Delhi, Chennai, Jamshedpur etc.
Inbound supplies of services Jamshedpur (majority)
Outbound supplies of goods and services Jamshedpur & Kolkata (majority)
Procurement of raw materials Various parts of the country
External Processing Agents Jamshedpur and various parts of the country

Tata Steel has taken up initiatives called Strategic Out Sourcing in line with its VISION-2007 and some of the operations outsourced / proposed to be outsourced are listed here in Figure-2.4.

Company  Products Tata Steel’s Stake (%)
Tata Refractories Ltd. (TRL) Refractories including high alumina & dolomite 51
Tinplate Company of India Ltd. (TCIL) Tin plates 31
Stewarts & Lloyds of India Ltd. Pipe work engineering 100
Metaljunction Pvt. Ltd. Reverse auction 50
Jamshedpur Injection Powder Ltd. (JAMIPOL) De-sulphurising compounds, both carbide  & magnesia based 28
Tata Yodogawa Ltd. (TAYO) Rolls 37
Tata Metaliks Ltd. (TML) Foundry projects 47
Tata Pigments Ltd. (TPL) Synthetic red & yellow oxides of iron 100
TRF Ltd. Bulk material handling equipment 35
Tata Sponge Iron Ltd. (TSIL) Sponge Iron 40
Tata Ryerson Ltd. (TRYL) Steel processing 50
Tata Martade International Logistics Ltd. (TMILL) Export & import cargo handling, chartering & customs clearance 51
Jamshedpur Utility Services (JUSCO) Services activities 100

Figure-2.4 – Strategic Outsourcing

Tata Steel has a committed workforce of 42,511 personnel (as on 31.03.2004-Figure-2.5) Employees are classified as Officers (OPR), Supervisors and Workers. Supervisors and Workers are organized into an independent Trade Union (refer Section LA3 also) (Non-OPR) with democratically elected representatives at all locations. Figure-2.1 shows the operational structure. Tata Steel has 1974 engineers, 554 MBAs, 46 PhDs, and persons with degrees in technical areas of relevance to the operations. Contract labour is used in the areas of project execution and other activities.

The Community & Society within 10-30 km radius around Tata Steel enterprises is supported by the organization as regards their requirements like health care, women empowerment, family initiatives, vocational training, development of sports & culture and income generation. The village communities are selected based on the current level of developmental needs, interventions and emerging issues e.g. wasteland development, irrigation facilities & income generation.

Other important stakeholders include Investors, Financial Institutions (details of shareholding have been provided at Section 2.6), Regulators (State & Central Pollution Control Boards, Ministry of Environment and Forests & Ministry of Steel, Ministry of Finance, Excise Department, Factory Inspector, Labour Commissioner Director General Mines Safety, Inspector of Explosives, Boiler Inspector, Medical Inspector of Factories, Electrical Inspector, etc.). Key attributes related to these stakeholders are repayment of loan, regulatory compliance and employee welfare respectively.
  

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