Tata Steel is working with more than 30 startups to adopt digital workflows
Tata Steel is working with more than 30 startups to adopt digital workflows
Sarajit Jha, Chief of Business Transformation and Digital Solutions at Tata Steel, said at a product conference last year that the company is collaborating with more than 30 startups to implement digital workflows.
“It’s critical that we engage with a startup that has the ambition and appetite to serve us and the breadth of capabilities to do so,” Jha said, adding that staying power and the will to remain on are also vital.
Tata Steel’s revenue in the fiscal year 2021 was Rs 156,294 crore, up 5% from the previous year.
At Tata Steel, being digital means being business-driven and focused on solutions and design outcomes, according to Jha, who spoke at the Nasscom Product Conclave 2021.
“Startups and established organisations must collaborate to adapt, implement, and scale new technologies,” he said, referring to the necessity for traditional enterprises and startups to collaborate to adapt, implement, and scale new technologies.
“The real conflict is between Tata Steel’s clock speed and scale vs startups’ clock speed and appetite for scale,” said Sarajit Jha, Tata Steel’s Chief of Business Transformation and Digital Solutions.
For large companies to work with, a startup’s ambition to build an enterprise-scale platform or product is critical.
According to Jha, Tata Steel collaborates with Aarav Unmanned Systems, a drone technology startup, and Maximl, an enterprise SaaS startup.
When selecting whether or not to work with a startup, the steelmaker uses a set of criteria. Jha claimed that the startup must first have IP (intellectual property) or strive to develop IP.
Second, the CEO of a startup must support the relationship with significant clients. “Everyone else refuses to fly because they are unable to navigate.” He went on to say, “They don’t have the appetite or enthusiasm to navigate Tata Steel.”
Third, success’s end results must be clearly stated,” Jha said. “If we don’t get there in the time range, we’ll call it a day.”
While engaging with these new-age organisations that provide technology solutions, the greater objective for a huge enterprise is to grow and develop the entire business.
“The first thing a startup should attempt to avoid is becoming one,” he said, pointing to the need for entrepreneurs to scale their solutions consistently and consistently.
The digital transformation revolution is sweeping through all industries, traditional and non-traditional alike, and transforming how businesses operate. Manufacturing, for example, is responding to these new problems, according to Jha.
“Digital transformation is a thing of the past. He stated, “It’s now about business change.” He went on to say that at Tata Steel, agility is a mindset. It makes no difference where you come from, and the agility attitude has been engrained in the company since Jamsetji Tata founded Tata Steel in the nineteenth century.
About Tata Steel
Tata Steel Limited is an Indian steel-making firm based in Jamshedpur, Jharkhand. It is headquartered in Mumbai, Maharashtra, India. The corporation is owned by the Tata Group.
It is one of the world’s largest steel producers, with an annual crude steel capacity of 34 million tonnes and is one of the most geographically diverse steel producers in the world, with operations and commercial presence around the globe. The group generated a consolidated turnover of US$19.7 billion in the financial year ending March 31, 2020 (excluding SEA activities). With a yearly capacity of 13 million tonnes, it is India’s second-largest steel firm (measured by domestic production) after Steel Authority of India Ltd.
Tata Steel employs more than 80,500 people across 26 countries, with the majority of its operations in India, the Netherlands, and the United Kingdom. The company’s largest factory is located in Jamshedpur, Jharkhand (10 MTPA capacity). In 2007, Tata Steel purchased Corus, a steel manufacturer based in the United Kingdom. The company was ranked 486th on the Fortune Global 500 list of the world’s largest corporations in 2014. It was the ninth most valuable Indian brand in 2013, according to Brand Finance.
Tata Steel Kalinganagar was named to the World Economic Forum’s Global Lighthouse Network in July 2019.
Tata Steel has been selected one of India’s Best Workplaces in Manufacturing for 2022 by Great Place to Work. The company’s continuous dedication to fostering a culture of high trust, honesty, growth, and caring for its people is recognised with this award, which is being granted for the sixth time. Tata Steel has also been accepting LGBTQ employees, and their partners are now eligible for health insurance coverage under the new HR policy.
The Tata Iron and Steel Company was formed on August 26, 1907, by Jamsetji Nusserwanji Tata and Sir Dorabji Tata. As a Jamsetji’s Tata Group subsidiary, TISCO began producing pig iron in 1911 and steel in 1912. In 1912, the first steel ingot was produced. Tata Steel has been selected one of India’s Best Workplaces in Manufacturing for 2022 by Great Place to Work.
The company’s continuous dedication to fostering a culture of high trust, honesty, growth, and caring for its people is recognised with this award, which is being granted for the sixth time. Tata Steel has also been welcoming to LGBTQ employees, and under a new HR policy, LGBTQ employees’ partners are now covered by health insurance.
There were two attempts to nationalise the corporation, one in 1971 and the second in 1979. Both attempts were unsuccessful. The corporation was attempted to be nationalised by Indira Gandhi’s government in 1971, but it was unsuccessful. The Janata Party (1977–79) wanted to nationalise TISCO in 1979. (now Tata Steel).
At the suggestion of Biju Patnaik, Minister for Steel, then-Minister for Industries, George Fernandes threatened nationalisation, but the proposal failed due to union objections.
Tata Inc., a subsidiary of the firm, was founded in New York in 1990 as the company began to expand. In 2005, the company’s name was changed from TISCO to Tata Steel Ltd.
Organisational Overview of the Business Model
In the steel industry, the Tata Steel Group’s business approach is aligned with its aim of “Becoming the Benchmark in Value Creation and Corporate Citizenship.” Due to this, it maintains a strategic focus on continuing value generation for all of its stakeholders. With operations in 26 countries and a presence in over 50 countries, the Company is one of the world’s major steel producers and most globally diversified.
The Company meets various client requirements across multiple segments globally, emphasising continual improvement. India, The company’s 2.9 mtpa brownfield expansion in Jamshedpur was completed successfully, bringing total crude steel capacity to 9.7 mtpa.
India’s economy slowed in the 2012-13 financial year, with GDP growth of only 5%. The Indian operations’ profitability was hampered by a lacklustre demand combined with rising imports. Cost increases due to the 2.9 mtpa brownfield expansion project in Jamshedpur stabilising in the first year of commissioning, variability in steel prices, and increased costs due to the 2.9 mtpa brownfield expansion project Jamshedpur stabilising in the first year of commissioning put additional pressure on profitability.
Despite the immensity of the internal and external obstacles, the Indian businesses produced a strong EBITDA of ‘11,698 crores, up from ‘11,559 crores the previous year. In terms of hot metal, crude steel, and saleable steel output and sales, the Indian operations had their greatest year ever.
In the financial year 2012-13, crude steel production reached 8.13 million tonnes, up 14% from the previous year, with sales reaching 7.48 million tonnes, the most ever. Due to capacity development in Indian operations, flat product deliveries grew by 20% over the previous year. Lifting & Excavation, Railways, Shipbuilding, and Defense were among the industries where the company expanded its marketing efforts. The recent addition to the Company’s branded portfolio, “Tata Astrum,” was created to reach the SME sector, which opportunistic brokers previously served.
In the financial year 2012-13, Long Products achieved its highest-ever sales of 2.98 million tonnes, with an all-time high channel sales of 1.7 million tonnes, primarily by leveraging the Company’s retail presence through its distribution network and providing better value propositions to its customers. Over secondary steel manufacturers, superior quality long goods and just-in-time stocking practises assured premium pricing.
Despite lower production and sales than the previous year, the Ferro Alloys and Minerals Division (FAMD) continued to maintain the steel division’s profitability. FAMD has shifted its attention to local ferro chrome sales, recognising a shift in global ferro chrome production patterns as a result of increased chrome ore exports from South Africa to China.
The Company’s Tubes Division, a Strategic Business Unit (SBU), manufactures and sells a variety of steel tubes and pipes. It is the only tube manufacturer with a presence in all three product sectors of Conveyance, Structural, and Precision in India. It is the domestic market leader in Conveyance and Structural Tubes, and it has a strong national presence in Precision Tubes for the automotive and engineering industries. In the transportation, construction, and automotive markets, the SBU’s products and services are differentiated in the market by brands such as Tata Pipes, Tata Structura, and Tata Precision Tubes.
The Company’s capacity expansion upstream is timed to coincide with the downstream expansion of its product offering, which includes Tubes and Cold Rolled goods.
The rise of the Flat Product value chain is linked to the growth of the SBU. The Tubes SBU is expected to increase capacity by around 0.6 million tonnes in the next five years to reach 1 million tonnes, solidifying its leadership position in the chosen market segment with value-added downstream products and best-in-class customer service. The company is now moving into the next phase of its development, with plans to build a six mtpa greenfield steel plant in Odisha.
Tata Steel Odisha Limited, a new subsidiary created exclusively for this project, has been established. The project will be implemented in two phases, each of which will be 3 mtpa.
The Company has completed a project finance deal for Rs 22,800 crores with a group of 21 banks and financial institutions. Following a systematic approach to Total Quality Management (TQM), the Company continued its pursuit of value creation for all stakeholders. The Company was the first integrated steel company in the world to be awarded the “Deming Grand Prize” by JUSE, Japan, in 2012.
Tata Steel chooses startup AUS for drone-based solutions across verticals
Tata Steel’s several business verticals have granted AUS (Aarav Unmanned Systems), the premier end-to-end drone solution startup, multiple long-term contracts to supply advanced drone-based enterprise solutions. Tata Steel expects AUS drones to help them operate their mines more efficiently and productively while also guaranteeing regulatory compliance and safety.
Tata Steel’s Projects team uses AUS’s drone technology to track the progress of the future Kalinganagar Expansion Plant in Odisha. With an 8 million tonne capacity, the integrated steel complex will be India’s largest. AUS has acquired a two-year rate contract with the Tata Steel Corporate Audit team to conduct drone-based physical verification of bulk inventory at all 23 locations across several Tata Steel businesses.
AUS will conduct monthly drone inspections of Tata Steel’s mining leases and provide advanced Mine Analysis for the company’s Natural Resources Division. Tata Steel Ltd. also struck an agreement with AUS to purchase three survey-grade drones for internal surveying and research and development purposes.
The Ministry of Civil Aviation granted AUS and Tata Steel one-year exemptions for drone operations across all 23 mines, plants, and raw material locations. The DGCA has accepted AUS’s SOP to fly drones at Tata Steel companies for a period of one year. This will ensure that all of Tata Steel’s operations are carried out in complete regulatory compliance.
“We are happy to bag numerous contracts based on our expertise in offering end to end enterprise solutions from our special purpose drone and data analytics platform,” Vipul Singh, Founder and CEO of AUS, stated after bagging the coveted project. Tata Steel will benefit from the AUS drone solution in monitoring and efficiency and more sustainable corporate operations. They were the only vendor to qualify the operational requirements in an examination conducted under real-world settings, thanks to world-class technology and a comprehensive understanding of industry standards.”
“Technology is becoming increasingly prevalent in most businesses and sectors today,” remarked Mr Piyush Srivastava, Chief-Natural Resource Division of TATA Steel Ltd. The quick pace of innovation is also impacting the mining industry. We are pleased to partner with AUS, a new-age disruptor in drone technology, to modernise our mining operations. Using drones to conduct digital surveys and monitoring will improve visibility and efficiency in mine, land, and infrastructure management.”
The startup business is expanding due to large multinational corporations partnering with them. This will aid the growth and development of Indian startups.
Startups are getting funds from Ratan Tata with just a mail
A few approaches can be used to grab the attention of Mr Ratan Tata regarding investment prospects. The following are some methods:
1. Contacting Mr Ratan Tata is as simple as speaking with someone from Tata Trusts who is in charge of dealing with investment requests. This method can take a long time to receive a response and is time-consuming.
2. Use a formally edited e-mail with a purpose statement as the second option. It’s also essential to make sure the proposal or request is clear to be forwarded to Ratan Tata himself if it’s worth his time.
3. Contacting Mr Venkatramanan from Tata Trusts for a meeting with Ratan Tata to present the concept is another option. This idea is better and more professional because all proposals are directed to him before being shortlisted for Ratan Tata’s consideration.
4. Writing a letter outlining the idea and reasons for requesting investment is the best technique to contact the former Tata group chairman. Talking about the risks and potential that the proposal presents will give him an advantage over the thousands of other investment ideas that he receives. Because Ratan Tata is a straightforward, down-to-earth individual, writing a letter also appeals to him.
Ratan Tata is well-known for his support for female-led businesses. His investments are proof of this, but they are not simple to come by. The Indian industry mogul will only invest in a business if the concept excites him and the founders’ first impressions are positive.
According to media sources, Mumbai-based e-ticketing firm Kyazoonga has acquired an unknown sum of money from the Chairman Emeritus of Tata Sons, adding to his list of 25 startups in which he is already an investor.
These monies will be used to grow the company’s worldwide markets, including the United States, West Asia, Pakistan, and the Caribbean Islands. The Caribbean Premier League in West Indies has already negotiated a Rs 100 crore deal for two editions.
Kyazoonga has been selling tickets for events in the United States from its new headquarters in Los Altos, Silicon Valley, since last year, including a few events in California and Washington.
Kyozoonga, a prominent participant in the ticketing sector, was founded in 2007 by MIT graduate Neetu Bhatia. The platform has previously sold tickets for domestic sporting leagues such as the Indian Premier League and the Pro Kabaddi League and international events such as the ICC Cricket World Cup and FIFA World Cup qualifiers through partnerships with sports franchises, music concerts promoters, and event organisers.
They will certainly be a ticketing partner for the 2016 Olympic Games in Rio de Janeiro.
Neetu expressed her gratitude for the money “We have our own IP and ticketing technology platform, which has allowed us to expand within the United States. We mostly concentrate on sporting and entertainment events, rather than films. That’s how we set ourselves apart from the other companies in the market.”
Previously, Ratan Tata has invested in female-led firms such as Shradha Sharma’s YourStory, Nidhi Agarwal’s Kaaryah, Richa Kar’s Zivame, and Hemalath Annamalai’s Ampere, to mention a few.
Perks of receiving funds from Ratan Tata
When a startup receives funding from the business icon himself, it gets a lot more than simply money and advice. People want to know which firm Ratan Tata liked enough to put his money into; thus, getting funding from him is a free endorsement. It’s a quick method to get famous since the Tata name stands out.
Do you want to be backed by Ratan Tata?
Simply inquire of him. It worked for Kaaryah founder Nidhi Agarwal, who was turned down by 113 businesses before being backed by Ratan Tata himself. Nidhi just sent him an email, and three months later, Tata funded her firm.
When you approach him, your applications are verified by Venkataraman before reaching Tata, who typically asks only two questions to startups seeking funding. It’s all about the danger and the opportunity here. Following Venkataraman’s approval, founders usually have 30 minutes to make a presentation, with a successful pitch being valued according to the previous investment round.
edited and published by nikita sharma