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LOGO
TURNAROUND EXCELLENCE“THE TINPLATE COMPANY OF
INDIA”
LOGOINTRODUCTION
• Vision 2012 – Be an industry leader in value creation, servicing packaging needs and creating a greener future.
• Born in 1922
• Largest producer of tin coated and tin free steel sheets in India, enjoying 35-40% market share and undoubtedly the industry leader for 85 years.
• Products – Open top sanitary cans, hr pickled coils, full hard coils, etc.
LOGOIMPACT OF GLOBALIZATION IN INDIA
AIM• Reduce trade barriers• Free flow of capital & technology• Free movement of labor
MEASURES TAKEN• Reduction of import duties• Encourage foreign investment• Encourage foreign technology transfer
agreements
LOGOMACRO-ECONOMIC FACTORS
Increasing income
Increasing health consciousness and
convenience needs
Retail boom
Government Policies India to become the food factory of the world Treble the size of processed food Increase the level of processing from 6% to 20% Increase the value addition from 20% to 35% Increase the share in global agricultural trade from 1.5%
to 3%
LOGOPESTEL ANALYSIS
Political •Stiff import duty in the 1980s
•Negotiate with government for rationalization of import duties in 1984
•Approval from government for production of TMBP
•Reduction in tariff in 1996
•Permit closure of HDP in 1999
Economic •Demand for tinplate greater than production in 50s & 60s.
•Cartel of TMBP manufacturers
•Low demand of tinplate in 1980s
LOGOPESTEL ANALYSIS
Social •Indiscipline among workers & supervisors in early 80s
•Exodus of competent engineers
•Stock out of material from 1996 from suppliers
•Shortage of medicine, onions & potatoes in canteen – leading to unrest
•High attrition rate in 1997 – 1998
•VRS to lay off employees in 1999
LOGOPESTEL ANALYSIS
Technological •Up gradation of technology, increase capacity
•Erratic electricity supply
•Hi silicon galvanized sheets in 1981
•Innovative technology in 1992, implementation got delayed
•Revise capacity of plant by Raina
Environmental
•Generate heat in the ambience to around 50 degrees Celsius.
Legal •TISCO consisted in court against BOCL.
LOGOSWOT ANALYSIS
Strengths Weaknesses
TOP and PMS initiatives were started to achieve more than 100% capacity utilization
Price initiatives Placed 6th position on its
TBEM score among all TATA group companies
Quality problem Weak research and
development facilities Inadequate focus on control
mechanism for prevention of lower grade imported tinplates.
Opportunities Threats
Increase of Indian GDP will provide opportunity for growth of packaging spend
Retail boom will increase packaged food products.
Changing food habits and health consciousness of next generation Indians
Innovation in alternative packaging such as HDPE, polyethylene, etc.
Reducing tariff levels on imports result in unscrupulous dumping of lower grade tinplate from CIS countries
Rising cost of tin which has to be imported completely from outside
LOGOSTRATEGIC CHALLENGES AND OPTIONS
Type Strategic Challenge Strategic Option
Global In India and international markets, competition is from world steel majors who have economies of scale, consistency in product offering and also focus on R&D
Address economies of scale.
Improve quality standards.
WTO triggered tariff lowering Enhance cost competitive- ness
Per capita consumption in India, less than 0.3 kg, is one of the lowest. A similar economy, like China, consumes 1 kg.
Increase growth of market size in India
LOGOSTRATEGIC CHALLENGES AND OPTIONS
Type Strategic Challenge Strategic Option
Business 80% of imports are non-prime. Dumped imports impact market share, prices and place in doubt growth for domestic players.
Address dumping and unscrupulous practices
Competition with substitute forms of packaging.
Enhance cost competitive- ness Packaging solutions/ innovations
Operations
Quality yields consistent at 87%.
Check inconsistent process management
Capacity utilization, though increasing, is at a slower rate.
Increase through puts
Customer Overall customer satisfaction steady at 61%.
74% against world class in similar industry
LOGOSTRATEGY TO FACE UP TO THE CHALLENGE
CUSTOMER SATISFACTION
PRODUCT QUALITY
BUSINESS PROCESS REDESIGN
TACTICAL PROCESSES
ORGANIZATIONAL CULTURE
TACTICAL DELIVERY
COMPLIANCE
LOGO
Identify the factors which can be reduced well below industry standards
Eliminate the factors that the industry has taken for granted
Raise the factors well above the industry standards
Create factors which the industry has never offered
ENVIRONMEN
T
STRUCTURE
STRATEGY
SCANOPERATIONALIZE
VALUE CREATE VALUE
LOGOCONCLUSION The opening of economy opened up opportunities.
It also possessed threat to many companies.
World class measures such as TPM and business excellence initiatives had helped the Indian tinplate manufacturers to stand back and turn around.
It also helped in gaining competitive advantage in terms of cost, productivity and quality.
However, the time is sharp to undertake future strategies whereby one has to innovate in terms of value and create a niche for itself.
The strategic approach needs a shift from competition to value innovation.
LOGO
GROUP MEMBERS:- Amitanshu Srivastava Amrita Das Anamika Dey Aneema Anand Kumar
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