28-11-2012, 12:15 PM
PROJECT REPORT ON INVENTORY MANAGEMENT CONDUCTED AT TATA STEEL LTD
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INTRODUCTION
THE TATA GROUP
The Tata Group comprises operating companies in seven business sectors: Materials, Engineering, and Information Technology and Communications, Energy, Services, Consumer Products and Chemicals. The Group was founded in the last quarter of the 19th century in India when the country had just set out on the road to gaining independence from British rule. Consequently, the founders of the Group aligned business opportunities with nation building. This approach remains ingrained into the Group’s ethos even today even as it spreads its operations to other geographies.
The Tata Group is today India’s largest conglomerate with revenues of $83.3 bn in the financial year ending March 31, 2011. The Group companies had 424,365 people on their rolls on March 31, 2011. Its 31 publicly listed companies have a combined market capitalization which is one of the highest among all business house in India and a shareholder base of over 3.6 million. Group companies export products and services to over 85 countries and have operations in over 80 countries.
BRAND
The Tata brand is highly respected throughout the world. The Tata Steel Group’s Brand building endeavors have always been directed at building assurance, reliability and superior product quality in every segment. Outstanding performance by the Company’s different divisions have surpassed their own brand standards and created higher quality parameters for each other.
In steel as in many other industries, it stands for quality, trustworthiness and leadership both in business performance and in exceptional commitment to all its stakeholders.Corus began the visual transition to the new identity of Tata Steel on 27 September 2010. The transition will be completed gradually to avoid unnecessary expense and wastage.
JOURNEY INTO TATA STEEL
HISTORY: Established in 1907, Tata Steel is among the top ten global steel companies with annual crude steel capacity of over 28 million tonnes per annum (mtpa). It is now one of the world's most geographically-diversified steel producers, with operations in 26 countries and a commercial presence in over 50 countries.
The Tata Steel Group, with a turnover of US$ 22.8 billion in FY '10, has over 80,000 employees across five continents and is a Fortune 500 company.
Tata Steel’s larger production facilities include those in India, the UK, the Netherlands, Thailand, Singapore, China and Australia. Operating companies within the Group include Tata Steel Limited (India), Tata Steel Europe Limited (formerly Corus), NatSteel, and Tata Steel Thailand (formerly Millennium Steel).
EXECUTIVE SUMMARY
Established in 1907, Tata Steel is Asia’s first and India’s largest integrated private sector steel company with its captive iron ore and one of the world’s most modern steel making and facilities at Jamshedpur in Eastern India, which includes a state of art cold rolling mill complex. Tata Steel is among the lowest cost producer of steel in the world.
Other operating highlights:
• Flat Products sale in Q2FY’12 increased 3% y-o-y.
• Long Products achieved best ever quarterly retail sales of 268 kt (previous best 242 kt in Q1 FY’12).
• Steel Melting Shop achieved highest ever quarterly production of 994 kt (previous best: 990 kt in Q1 FY’12).
• New Bar Mill (Long Products rolling mill) recorded its best quarterly production of 202 kt (previous best: 193 kt in Q1 FY’12).
• Wire Rod Mill (Long Products rolling mill) recorded its best quarterly production of 111 kt (previous best: 108 kt in Q3 FY’05).
• Tata Steel conferred with the ‘Business Superbrand 2010-11’ status by Superbrands India.
As every business concern irrespective of its size, nature, and age needs funds to carry out business operations such as purchase of raw materials, payment of wages and other day-to-day expenses, raw material handling and INVENTORY MANAGEMENT under SUPPLY CHAIN MANAGEMENT SYSTEM becomes an important and integral part of business. It leads to change the production rate of the goods, and it acts like centre of a business because no business can run successfully without a proper SUPPLY CHAIN MANAGEMENT SYSTEM. Therefore, to manage this system any sector is a challenging job.
GLOBAL STEEL COMPANY
The current global steel industry is in its best position in comparing to the last decades. The prices have been rising continuously. The demand expectations for the steel products are rapidly growing for the coming years. The shares of the steel industry are also in its high pace. The steel industry is enjoying its 7th consecutive years of growth in supply and demand and there is many more merger and acquisitions which overall buoyed the industry and shoed some good results.
The crude steel production for 66 countries reporting to the World Steel Association was 1220 million metric tons for calendar year 2009, lower by 8% against that of 2008. The sub-prime crisis has led to the recession in the economy of the different countries, which may lead to have a negative effect on whole steel industries in the coming years. However steel production and consumption will be supported by continuous economic growth. China, Japan, India and South Korea are the leading steel producing countries in Asia. Apart from this USA, Brazil, U.K accounts for the major chunk of the world’s steel production.
PRESENT SCENARIO OF STEEL INDUSTRY IN INDIA
The Indian steel industry have entered into a new development stage from 2005-06, riding high on the resurgent economy and rising demand for steel. Rapid rise in production has resulted in India becoming the 5th largest producer of steel.
It has been estimated by certain major investment houses , such as Credit Suisse that, India’s steel consumption will continue to grow at nearly 16% rate annually, till 2012, fuelled by demand for construction projects worth US$ 1 trillion. The scope for raising the total consumption of steel is huge, given that per capita steel consumption is only 40 kg – compared to 150 kg across the world and 250 kg in China.
The National Steel Policy has envisaged steel production to reach 110 million tonnes by 2019-20. However, based on the assessment of the current ongoing projects, both in Greenfield and Brownfield, Ministry of Steel has projected that the steel capacity in the country is likely to be 124.06 million tonnes by 2011-12. Further, based on the status of MOUs signed by private producers with the various State Governments, it is expected that India’s steel capacity would be nearly 293 million tonne by 2020.