The pandemic has disrupted traditional business models, creating new opportunities and business models that embed sustainability. With India’s continued infrastructure push and low per capital steel consumption, demand for steel is likely to increase significantly going forward. At Tata Steel, we continuously evaluate the evolving trends and respond proactively to capitalise on the emerging opportunities.
The Indian economy is likely to become the third largest economy by 2030, and the steel industry will play a pivotal role in this growth journey.
With large raw material reserves, strong base of technically skilled manpower and one of the fastest growing markets in the world, India has definite structural advantages for a successful steel industry. The National Steel Policy 2017 seeks to create a globally competitive steel industry in India with 300 million tonne steelmaking capacity and 158 kg per capita steel consumption by FY 2030-31. The growth in demand will come from traditional, as well as emerging consuming sectors focussing on changing needs of customers. Government-led investment in infrastructure, rapid urbanisation, rising preference for personal mobility, growth in capital goods sector, and government focus on making India ‘Aatmanirbhar’ are expected to stimulate steel demand in India. The acceleration of the rural economy is also emerging as a potential demand driver for steel. The Government has taken an objective of increasing rural per capita consumption of steel from current 19.6 kg to 38 kg by FY 2030-31. With a leadership position in key market segments, world-class production facilities, and cost leadership position, Tata Steel is well poised to benefit from this large opportunity.
As customer needs evolve, the nature of steel consumption and the channel deployed to reach the customer will also change.
Growing urbanisation will see demand for steel focussed on modularisation, amenable to the fast pace of construction and better aesthetics. In addition, with changing demographics and higher affordability, the nature of steel consumption in sectors such as automobiles, white goods and other consumer goods is fast evolving. Along with new products, there is a focus towards servitisation and providing higher convenience. A culture of customer-obsession and providing customers with the best products and experience will enable Tata Steel to be the supplier of choice for discerning customers.
While climate change is a key risk for a ‘hard to abate’ sector such as steel, it also provides an opportunity to take a leadership role in the steel industry by reducing our environmental footprint.
As the world recovers from the COVID-19 pandemic, the focus on sustainability is at the forefront with a significant amount of the global stimulus directed towards green technology. To position itself as a leader in sustainability, Tata Steel has already identified technology leadership areas in Hydrogen technology leadership areas in hydrogen technology, carbon capture and use, and reduction in specific water consumption. Tata Steel Jamshedpur is a national benchmark in CO2 emission. Specific plans are in place to improve sustainability performance in other locations. We have ventured into the steel recycling business, leveraging the expected increase in scrap availability in India.
Leveraging in-house capabilities and building partnerships to adopt technologies of tomorrow.
Evolving consumer needs and growing focus on sustainability will require innovation in process, product, and business models supported by a strong technology management process. Organisations can create a differentiated position by focussing on creating the technology of tomorrow. Tata Steel aspires to be a technology and innovation leader in the steel industry. Towards this vision, we leverage our in-house potential and build external ecosystems through carefully curated collaborations and partnerships. The VIVA (Ventures, Innoventure and Alliances) team has been formed to explore innovation opportunities provided by the external ecosystem and accelerate our journey towards achieving technology leadership. The Innovent team focusses on consumer in innovation through a deep understanding of their emerging needs. Our collaborations with start-ups are expected to stimulate agile innovation and gain competitive edge in various parts of the value chain.
Technology shifts are creating market opportunities for new materials and applications in existing and emerging sectors.
Tata Steel with its portfolio of materials is best suited to leverage this trend and, in the process, create adjacent revenue streams that complement the steel business. We are building new businesses in high-potential new materials such as Fibre Reinforced Polymer composites, medical materials and graphene.
The future of work is evolving rapidly, accelerated by the pandemic.
Remote operations with skeletal on-site workforce is the new normal. Usage of video analytics and sensor-based plant operations is significantly disrupting traditional operations and maintenance practices. Digital is no longer just an enabler but core to the way plants operate and is key for creating and unlocking value. It is enabling a simpler, more agile, and efficient organisation. Tata Steel is also taking steps to scale Industry 4.0 technologies in its operations. During FY 2020-21, Tata Steel Jamshedpur became our second plant in India to be recognised as Industry 4.0 Lighthouses by the World Economic Forum.
Several initiatives undertaken over the past decades have helped ingrain a culture of ethics, safety, continuous improvement, environment consciousness and giving back to the community in the organisation
We are respected in the industry for many 'industry-first initiatives’. Our focus on diversity and LGBTQ policies are first of its kind. We are also fostering a culture of agility, innovation, and health and wellness. Several seeding actions have been initiated, which will enable us to become culturally future ready.
