Tata Steel: One of the top producers of steel

Popular for its goodwill and ethical conduct in business, this multinational steel-making company was founded by Jamshedji Tata in the year 1907 and is now headquartered in Mumbai, Maharashtra. It is not only the second largest steel company in India with an annual production capacity of 13million tonnes but also one of the top steel producers in the world. The company is reported to have delivered 23.88 million tonnes of Crude Oil this year.

Back in the 1930s, when the Tata Steel Company was known as the Tata Iron and Steel Company, it still operated the largest steel plant in the British Empire. In the year 1951, TISCO was able to launch major modernisation and expansion programs, which was the main reason for their success. They understand the importance of making changes internally with the external changes, and thus the company has not just been able to survive but succeed. By the 1970s, the company had around 40,000 people working at their Jamshedpur plant with additional 20,000 working in the neighbouring coal mines.

There were plans to nationalise the company in the 1970s, which wasn’t very successful. The company started expanding in the 1990s when it established its subsidiary Tata Inc. in New York. The company changed its name from TISCO to Tata Steel Company in 2005.

It isn’t surprising that Tata Steel was ranked the 2nd in 2017 Responsible Business Rankings which has been brought together by IIM Udaipur.

The company currently has its manufacturing operations in 26 countries and employs over 80000 people. Some of the countries where Tata Steel operates are Australia, China, India, the Netherlands, Singapore, Thailand and the United Kingdom. The largest plant of the company is in Jamshedpur.

Tata Steel acquired UK-based steel maker Corus, in the year 2007. The deal was finalised for $12 billion (Rs. 53,580 crores at the then exchange rate), which was the biggest foreign acquisition by an Indian company till then. At that time, steel as at its peak and Tata Steel paid 608 pence a share, which was 34% above the original offer price just to remove any chances for CSN to acquire Chorus. The stock fell 11% just after the day Tata signed its deal with Chorus, and in the next one month, the shares fell by 20%. This just might have been one of the biggest mistakes by Tata with the Tata Steel Europe reporting losses on losses.

Tata Steel was able to secure the 486th rank in Fortune 500 and was named the seventh most valuable Indian brand of 2013 by Brand Finance.

The company which is popular for its reputation in ethical conduct faced a huge scandal in 2015. The matters grew so much that the company was even planning to sell off its unit. After the Serious Fraud Office of UK confirmed to have had opened a criminal investigation in December 2015 into an activity of the business unit of Tata Steel (UK) Ltd, the manager was suspended along with many senior figures of the company. The UK steel business was already battling when this news came, and with Tata announcing to pull out of the country, many jobs were put at risk.

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