B.M.
S College of Engineering
Autonomous Institute, Affiliated to VTU
Department of Management Studies & Research Centre
Value Chain Analysis of TATA Steel
Team:
Shreyas S Sharma - 1BM24BA141
Shreyas U - 1BM24BA142 Submitted to:
Shreyas Velandy - 1BM24BA143 Dr. Tejaswi Patil
Shridar S H - 1BM24BA144
Shruthi V G - 1BM24BA145
Value chain Analysis
VALUE CHAIN ANALYSIS
Value Chain Analysis (VCA) is a strategic management tool used to analyze and
optimize the activities that create value for a business or organization. It involves
breaking down the organization's activities into distinct stages, from raw materials to end
customers, and examining each stage's contribution to the overall value creation process.
Key Components:
1. Primary Activities: These are the main activities that create value for the organization,
such as:
- Inbound logistics (procurement and receiving)
- Operations (production and manufacturing)
- Outbound logistics (storage and distribution)
- Marketing and sales
- Service (after-sales support)
2. Support Activities: These activities enable and support the primary activities,
including:
- Procurement
- Technology development
- Human resource management
Tata Steel’s Global Presence
Vertically integrated steel producer
OVERVIEW OF Operations in India, Europe, and Southeast
TATA STEEL’S
Asia
→ →
Owns mines Produces steel Delivers
VALUE CHAIN solutions
Value Chain Categories:
Primary Activities: Inbound logistics,
Operations, Outbound logistics, Marketing
& sales, Services
Support Activities: Firm infrastructure, HR
management, Tech development,
Procurement
TATA STEEL’S VALUE
CHAIN
1. Inbound Logistics (Getting Raw
Materials In)
Raw Material Sourcing
Iron ore and coal from captive mines (India)
Strategic import of high-grade materials (Europe & Asia)
Logistics Efficiency
Private railways & port facilities in Jamshedpur, Odisha
Automated conveyor belts, ERP-integrated inventory
Warehousing & Inventory
Advanced warehouse systems reduce holding costs
Value added: Lower raw material cost and
better supply control.
Steel Manufacturing Facilities
Tata Steel runs large steel plants in India (Jamshedpur,
OPERATIONS Kalinganagar), the UK, and the Netherlands.
(MAKING STEEL) Processes
→ →
Blast Furnace Basic Oxygen Furnace Rolling
& Finishing
Lean manufacturing principles, digital twins,
process optimization
Quality Control & Sustainability
ISO-certified plants
Waste heat recovery and carbon capture in trials
Value added: High efficiency, lower cost per ton,
.
and better-quality steel.
OUTBOUND LOGISTICS
(GETTING PRODUCTS OUT)
After making steel, Tata Steel
delivers it to customers using:
Their own logistics networks
Smart warehouses
Dedicated transport
Value added: Faster delivery and fewer delays =
happier customers.
MARKETING &
SALES
Tata Steel doesn’t just sell plain steel — it
1. Tata Tiscon (for construction)
builds brands like:
Tata Steel has effectively blended traditional B2B strength with
digital-first innovation by:
2. Tata Steelium (for businesses)
Expanding product reach across B2B, B2ECA (MSMEs),
and B2C segments.
Building user-friendly e-commerce platforms (Aashiyana,
DigECA).
3. Tata Astrum (for industrial use)
Providing embedded financing solutions (Urja).
Enhancing digital marketing and CRM capabilities.
Demonstrating impactful financial and strategic results.
This integrated approach positions Tata Steel as a digitally
enabled leader in steel marketing and sales.
Value added: Strong brand + convenience = higher sales.
SERVICES
Tata Steel offers support after the product is sold.
Technical assistance and after-sales support.
Customization and value-added services (e.g.,
cutting, slitting).
Feedback and quality improvement mechanisms.
Warranty and grievance redressal systems.
Value added: Customer loyalty and retention.
FIRM
INFRASTRUCTURE
Strong leadership from the Tata Group
Strong corporate governance and ethical standards.
Modern IT infrastructure and ERP systems (SAP).
Research & Development centers (e.g., Global R&D
in Jamshedpur).
Sustainability and CSR initiatives.
Value added: Trust from investors and customers.
HUMAN RESOURCE
MANAGEMENT
Tata Steel trains employees in leadership, safety, and
technical skills.
Focus on skill development, diversity, and leadership training.
Employee welfare programs and industrial relations (legacy of
JRD Tata).
Collaboration with academic institutions (e.g., XLRI, IITs).
Health and safety standards across all sites.
Workforce: Over 65,000 globally
Talent development through Tata Steel Management
Development Center
Focus on DEI (Diversity, Equity & Inclusion), union
collaboration
Value added: Trust from investors and customers.
TECHNOLOGY
DEVELOPMENT
Innovations in steelmaking (e.g., green steel,
hydrogen-based methods).
Digitization and smart manufacturing.
Investment in AI, IoT, and data analytics.
Sustainable product development and waste
recycling.
Collaboration with research institutes (e.g.,
IITs, Fraunhofer)
Value added: Better products, lower costs, innovative processes.
PROCUREMENT
Buys goods and services globally using centralized
systems.
All buying of materials and equipment is
handled by a centralized procurement team to
save costs.
They also use Supplier relationship
management (SRM)to manage suppliers and
make sure they always get good-quality
materials.
Value added: Gets better quality materials at better
prices.
CONCLUSION
Tata Steel manages most parts of its work, which helps it avoid sudden
changes in raw material prices. It also uses new technology and cares for the
environment, which makes it different from others. People trust the Tata
brand, and their good service keeps customers happy. The company also has
strong staff support and good systems that help it stay strong over time.
Because of all these efforts, Tata Steel has changed from just making steel to
offering smart and useful steel solutions.
THANK YOU.
