final tata vs corus

8/7/2019 Final Tata Vs Corus

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PRESENTED BY:-

AMRITA SINGH (G03)ASHISH SINHA (G07)

BHAWNA SHREE (G09)

PRADYUMNA CHATERJEE (G23)

SAUVIK DUTTA (G34)

EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT

6, WATERLOO STREET, KOLKATA 700069


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Introduction of Tata Steely Tata Steel, a part of the Tata Group, is one of the largest

diversified business conglomerates in India.y Tata Steel has a balanced global presence in over 50

developed European and fast growing Asian markets, withmanufacturing units in 26 countries.y Founded by Jamsetji Nusserwanji Tata, on 27th February,

1908,.y It has main steel plant located at Jamshedpur.

y Products : Steel, Iron Rod, Cars & Bearing etcy Tata Steel India is the first integrated steel company in the

world, outside Japan, to be awarded the DemingApplication Prize 2008 for excellence in Total QualityManagement.


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Introduction of Corus

y Corus is Europe's second largest steel producer.y Corus comprises three operating Divisions: Strip Products,

Long Products and Distribution & Building Systems andhas employees around 37,000 people worldwide.

y The Company was formed from the merger of KoninklijkeHoogovens N.V. with British Steel Plc on 6 October 1999.y It is the world's fifth largest steel producer.y Headquarters in London, England.y Products : Bar & Billet, Business services, Construction

Production & Services, Electrical Steels, Rail Products andServices.y Corus has manufacturing operations in many countries

with major plants located in the UK. The other plants arelocated in Netherlands, Germany, France and Belgium.


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Vision of Tata Steel

We aspire to be the global steel industry

benchmark for

Value Creation and Corporate Citizenship.


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Reason To Sell CorusDebt of 1.6 billion GBP.

Lack of raw materials at lower cost.

Old facilities with high cost of production.Employee cost was high.

To get access to Indian Ore reserves, as well as virginmarket for steel.

Due to tough competition from Arcelor- Mittal.

Decline in market share and profit.


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Reason For Tata To BidFinished products in mature markets in Europe

Corus produces high value stripped products

Diversification of products.Corus holds a number of patents and R& D facility.

Acquisition is better than setting up a new plant.

Improving productivity by using lower employee cost.

It will move from 55th in world to 5th in production ofsteel globally.


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About The DealDate 2nd April, 2007

Price Rs.55,000 crore

Pence Per Share 608 P.P.SFinance 4 Billion $ from internal company resources.

Advisor Duetshe Bank, ABN Amro & Standard Chartered.


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Faults In Strategy The deal was very expensive.

An existence of gap.

Less employees eager to relocate. Profit not high as expected.

Stock took a heavy fall during 2008.

Increased interest debt of 725 million $ afteracquisition


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Human Resources NeglectedCross Cultural Difference.

Providing Individual Counseling.

Taking employees view seriously.


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re-MergerPosition of the Company.

Opportunity to expand business.

Acquire new technologies.Proper valuation.

Selecting proper debt/equity ratio.


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ost-MergerAttain High Growth.

Sustainability in the market.

Good Return To Shareholders.Utilization Of Technologies.

To Lower the Debt.


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Conclusion It set an example for whole Indian Industry.

Extraordinary Deal.


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final tata vs corus

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