Social and relationship capital

Customers

BUILDING RELATIONSHIPS WITH CUSTOMERS

In line with the motto of ‘Reshaping our business for tomorrow’, Tata Steel is serving the growing needs of our B2B (Business Accounts), B2C (Individual Consumers) and B2ECA (Emerging Corporate Accounts) - customer segments by offering differentiated products and services. Our end-to-end operation across the value chain, from mining to finished steel goods, enables us to deliver superior quality products. Over the years, we have built strong relationships with the channel partners that has allowed us to serve existing B2C and B2ECA customer segments through our nationwide professional distribution network. We are now leveraging this extensive network established for steel products to extend our customer-centric services and new solutions such as Tata Pravesh Doors & Windows to markets in urban and rural India.

ENTERING NEW MARKET SEGMENTS

While our customers in the automotive and construction segments enjoy our unwavering commitment and focus, Tata Steel has entered into new attractive segments and micro-segments by adding new facilities, and by creating market differentiators through user-friendly services and solutions. In our constant endeavour to meet the future needs of our customers, we have forayed into other materials such as Fibre Reinforced Polymers and Graphene.

STRATEGIC FOCUS

WAY FORWARD

GOALS

IMPACT ON SDGs

Value Proposition for different Customer Groups

Tata Steel domestic sales (MnT)

BENEFITS CUSTOMERS DRAW FROM BHUSHAN STEEL ACQUISITION

Our customers also stand to gain from our acquisition of Bhushan Steel (now Tata Steel BSL), through which we will be able to provide them an enhanced product portfolio. Our customers will now have the advantage of choosing from our quality offerings in colourcoated products and precision tubes. This expanded capacity, leading to ramping up of volumes of Tata Shaktee, Tata Kosh, Tata Steelium and Tata Astrum, will empower our customers by eliminating stock outs at their end and serve their demands better. In addition to leveraging our customer outreach and sales, we can now provide a better range by manufacturing complementary products.

In Financial Year 2018-19, more than two-third of our output were served to our automotive and construction customers who continue to be our valued partners. We also catered to the engineering sector, in which our comprehensive portfolio of solutions range from engineering services to custom-made plant and equipment. Our product range in high‑quality agricultural implements is allowing our customers in Indian rural markets get value for money. Beyond this, Tata Steel continues to expand into the oil & gas and lifting & excavation segments by enhancing its expertise and preparing downstream facilities to serve the segment. We are continuously striving to meet the evolving needs of our customers by effectively engaging with our channel and ecosystem partners to enhance their capacity and capability.

Key initiatives to enhance value for customers in Financial Year 2018-19

Suppliers

FOSTERING LONG-TERM RELATIONSHIPS WITH SUPPLIERS

As an integrated steel manufacturer, we work very closely with our network of supply chain partners in upstream as well as downstream. Our supply chain process is focussed on using a multi-pronged approach of vendor segmentation and developing long-term supplier partnerships. We treat our 5,000+ vendors as business partners through a fair and transparent governance process. All our supply chain partners are required to comply with the Tata Code of Conduct (TCoC) which enumerates the principles of fair business practice, ensuring human rights, complying with environmental regulations and standards, and adhering to health and safety requirements. The supply chain partners are covered under the whistle blower policy and a formal grievance redressal system. To ensure high standards of occupational health and safety in the supply chain, suppliers are rated on a 5-star scale. Contracts with high safety risks are awarded only to partners who score 4 and above on this scale. We also conduct periodic audits to ensure compliance to good human rights practices. 359 vendors have been trained on TCoC and SA8000, and eight have been blacklisted due to non-compliance with the TCoC.

>5,000 Suppliers

SUPPLIER RELATIONSHIP MANAGEMENT (SRM) PROGRAMME

The SRM programme is aimed at collaborating with strategic vendors on digitalisation and innovation. We are including suppliers in technological knowledge transfer and capacity building programmes to enhance operational efficiencies, reduce transaction time and bring in transparency. Around 1,400 suppliers were covered through the Vendor Capability Advancement Programme (VCAP) under various topics such as TQM, finance, skill development, operational excellence, ethics, safety, and sustainability.

Further, to support the local communities and encourage the inclusion of marginalised sections of the society, we develop entrepreneurial capabilities and promote vulnerable communities by positive differentiation through Affirmative Action (AA) Programme of Tata Steel. Nearly 25% of our supply chain partners are local, out of which 70 are AA suppliers.

359 vendors trained on TCoC and SA8000

1,035 suppliers assessed on safety parameters

70 AA suppliers

~25% suppliers are local

Communities

SHARING VALUE WITH COMMUNITIES FOR A SUSTAINABLE TOMORROW

For Tata Steel, the well-being of communities and employees is at the core of its business. We operate in the remote regions of Jharkhand and Odisha whose overall socio-economic development is not at par with other parts of the country. The mining and metals industry has an inherent, significant and lasting adverse social and environmental impact on the surrounding population. We have mitigated these impacts by delivering a number of path-breaking interventions since inception. Townships with necessary facilities (utilities, healthcare, education and opportunities for earning a livelihood) provide a superior quality of life equally benefitting employees, their families and the local population.

OUR CSR INTERVENTIONS GO BEYOND REGULATIONS

Tata Steel has over a century of shared context, with communities giving it a microscopic view of their critical needs and aspirations. This has enabled the design of focussed initiatives which have matured over the years, from service provision to empowering communities in forging their future. CSR interventions are deployed by almost 600 professionals with diverse skills interacting directly with the community daily, partnered by organisations of national and global repute. TSL consistently commit resources to bold and innovative projects designed at scale. This approach is the bedrock of our strong and enduring community relationships with mutual trust and respect. It has significantly contributed to growth in our business, setting the Company apart from other mining and metals corporations.

A comprehensive range of themes with multiple initiatives aligned to globally accepted guidelines, including the UN SDGs, go well beyond the CSR mandate in the Companies Act, 2013. They cater to the most vulnerable sections among communities, addressing the challenges of today and building lasting solutions for the future. Focussed projects in health, drinking water, sanitation, education, livelihoods and infrastructure meet community needs. Sports and youth empowerment initiatives engage them meaningfully. Our ‘Tribal Identity’ theme is an emerging signature theme unique among corporates. It includes sustained efforts to preserve and promote aspects of heritage (language, culture, art forms and sports), ground-breaking efforts such as Samvaad and the Tribal Leadership Programme, which provide platforms for expression of and debate on tribal issues across India.

Our CSR strategy

Tata Steel’s CSR strategy looks at establishing replicable change models which impact core development gaps across India (Signature Programmes) and enhance thematic development focus on communities in operating areas (Proximate Community Development). In addition, TSL continues to strengthen its CSR governance and consolidate its leadership position by intensifying deployment of its key initiatives through the Tata Steel Foundation.

Initiatives for health, drinking water and sanitation

Impact

Initiatives for Education

Impact

Initiatives for Livelihood

Impact

The Development Corridor

A 280 km well-being trail

Impact

Initiatives for youth empowerment

Impacts

Initiatives for tribal identity

Impact

Quality of life for communities

Jamshedpur - Celebrating 100 years of our legacy township

Jamshedpur is the only million-plus city in India without a municipal corporation, with Tata Steel providing all amenities, such as power, water, sewage line, and sanitation facilities resulting in high Quality of Life (QoL) for its citizens. Tata Steel has progressively met the challenges posed by the surge in urban growth and increasing aspirations of a world-class city. With 37.5% green cover, Jamshedpur scores 101 on the QoL index, which is similar to the best cities in India.

Tata Steel caters to the healthcare requirement of its employees, their families, and the community around its area of operations. The medical facilities are extended through a network of Tata Main Hospital (TMH) located in Jamshedpur – 1,000+ bed tertiary care hospital supported by 8 TMH clinics spread across the city and raw material locations such as Jamadoba, Noamundi, Sukinda, West Bokaro and Joda.

Catering to healthcare of our communities

1.64 million OPD patients

59,000 Indoor admissions

21,000 Surgeries and procedures

TSK - A new beginning

The wilful relocation and resettlement of 100% of families staying inside the Tata Steel Kalinganagar (TSK) project area as per the R&R guidelines of the Government of Odisha was completed in Financial Year 2018-19. Beyond the R&R guidelines, Tata Steel is planning to develop model colonies with self-contained facilities such as portable water supply, water treatment plant, rain water harvesting, and solid waste management. Water treatment plant with a capacity of 1 million litres per day has been completed and made operational since March 14, 2019. For promoting education of the children of relocated families and the nearby community, Loyola School, Kalinganagar has been constructed with all standard facilities to cater to 1,400 students.

A 200-bed facility of Tata Steel-Medica Hospital is operational and is catering to quality healthcare needs of the people living in and around Kalinganagar. Multi-specialty health camps are also being organised to provide specialised healthcare services to people. An integrated township, with a plan of 1,004 flats are being constructed. In the first phase, 188 flats, were completed and handed over in Financial Year 2018-19.

Sports - A way of life at Tata Steel

Tata Steel engages employees, their families and the community in sporting activities through its:

• Sports academies (Tata Football Academy, Tata Archery Academy and Naval Tata Hockey Academy)
• Extension centres run along with Sports Authorities of India (Athletics and boxing)
• Training centres covering 17 disciplines, including basketball, badminton, volleyball, table tennis and chess.

Some key highlights of our sports initiatives in FY 2018-19

• Padma Shri laureate, Ms. Bachendri Pal, the first Indian woman to climb Mt. Everest, was conferred the Padma Bhushan in 2019. The Tata Steel Adventure Foundation (TSAF) headed by her, has enabled seven members of the community to scale Mt. Everest. TSAF has also formed a Climbing Academy.
• Apart from regular runs and half marathons at Jamshedpur, Kolkata, Bhubaneswar and Noamundi, a run was organised at Angul (location of Tata Steel BSL) and a run was sponsored at Indore, both of which were new initiatives.
• The Naval Tata Hockey Academy, which has a world-class AstroTurf, is focussed on the tribal communities. The team won the JSA Cup and nine boys were selected to attend the National Camp for the junior team.
• The Tata Archery Academy has over the last 16 years trained 127 cadets, 45 of whom have represented India. In Financial Year 2018-19, Deepika Kumari from the Academy won the gold medal at the World Cup Stage 3 at Kolkata and bronze medal in the finals in Antalya, Turkey. Deepika and Prachi Singh won a gold medal in the Asia Cup in Taiwan.
• Established in 1987 to train and nurture budding Indian footballers, Tata Football Academy (TFA) continues to serve national level football 141 out of 213 cadets have represented the country. In Financial Year 2018-19, TFA entered a tie-up with La Liga Giants Atlético de Madrid.

Tata Football Academy and Tata Trusts collaborate with Atlético de Madrid to develop Indian Football

• Jamshedpur Football Club (JFC) continued its participation in the ISL and brought together some of India’s top talents, youngsters and experienced foreign players. JFC continued to have its impact on the overall ecosystem of football in our areas of operation, including grassroots football, youth football and women football, and on improving the infrastructure, training and development.