108th Annual Report 2014-15

Responding to Challenges.
Creating Long-term Value.

The true mettle of an organisation is tested when it is able to respond to the challenges the environment throws up and turn them into an advantage. At Tata Steel, it’s been a turbulent year. For the first time in its history, it encountered closure of critical mines. During the same period global steel demand stagnated while imports surged. As a result, margins were under severe pressure.

Staying alert to the dynamics of the steel industry and remaining responsive to it, has enabled us to manage the impact of these challenges and come out stronger. We have seeded several initiatives and projects that will bear fruit in the coming year. A tightening of processes has enabled us to become leaner and more agile than ever before. And an ongoing focus on continuous improvement is helping us innovate to achieve even greater efficiencies.

THE CHALLENGES

Stagnant Steel
demand
Demand
de-growth in China
Low global
steel prices
Stringent mining
regulations
Raw Material
dependence
Captive mine
closure
Margins under
pressure

THE RESPONSE

Entering new
market segments
Driving efficiency through
process improvemen
Kalinganagar Project – offering
value added niche products
Adapting to new
compliance requirements
Creating alternate
sourcing pipelines
War Room Strategy to
initiate counter measures
Cross functional teams to
address operational challenges
Creating a logistics chain
from the port to facility
Initiative to achieve
EBITDA target
Development of new
services and solutions
Innovation in product
differentiation
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