Tata Tiscon: Fe 550D Market

Strategy

Presented by :
Yash Kumar
Agenda

About Us Products
Tata Tiscon 1 2
Tata Tiscon Marketing Mix
Fe550D
Introduction 3 Punjab and HP 4
Porter’s SWOT Analysis
Analysis 5 6
 About Us
Since its launch in 2000, Tata Tiscon has been redefining India’s Rebar market.

 Tata Tiscon is the First brand in India to introduce TMT rebars with technological Support from Morgan ,
USA.

 Rebars – the twisted lengths of metal that stick out from rising buildings. In this near 18 million tonne
market, India's best-known rebar brand is TATA TISCON. The rebar brand from Tata Steel is the prominent
ISP controlling largest pie of the market.

 The brand sells through an established network of nearly 4000 dealers across India.

 Tata Tiscon rebars adhere to all the mandatory requirements of the Bureau of Indian Standards IS 1786.
They are made in accordance with the TMT process.

 TATA TISCON operates in a market segment in which people pour in their life's earnings and value its
result above everything else
Tata Tiscon TMT
Grades
Tata Tiscon Fe 500D
Fe 500D has been the benchmark
of purity and quality in the
construction industry
Tata Tiscon Fe 550D
Higher strength rebar from the
House of Tata Steel
Tata Tiscon 500S
Seismic-resistant rebar for
construction
Tata Tiscon Fe 600
Fe600 offers 20% higher Yield
Strength (YS) than the Fe500
1 grade rebar. 4
TATA TISCON CRSD
Corrosion Resistant Super Ductile
Rebars
2 5
3
Tata Tiscon Readymade products
02. Tiscon Footing
To minimise the
fabrication mistakes at
01. Tiscon Superlinks site, as well as to speed up
the construction, and
A stirrup is a closed loop
more importantly, to
of reinforcement bar that
is used to hold the main
reinforcement bars 03. Tata Tiscon Ultima
together in an RCC
Tata Tiscon Ultima introduces two
superior coating options - 1) zinc
coating using exclusive patented
Electrolytic plasma
 Tata Tiscon Fe550D : Introduction

 A Product From Tata Steel. Is the New Generation High Strength Ribbed
Reinforcement Bar.

 Higher Strength and Higher ductility , making it most suitable for earthquake
resistant structures.

 It is Different From Ordinary Bars in its Method of Manufacturing and

Consequently, in its Combination of Properties.
 Rebars are specified and assessed from the functional point of view over mainly two dimensions:
Mechanical Properties and Chemical Properties.

Chemical Properties Mechanical Properties

Constituent (%) Tata Tiscon Fe550D Property Fe550D
Carbon(Max) 0.25 Yield Stress – N/mm2 (Min) 570
Sulphur(Max) 0.035 UTS-N/mm2 (min) 635
Phosphorous(Max) 0.035 UTS/YS Ratio (min) 1.12
Nitrogen ppm(Max) 80 % Elongation 14.5

 As Part of the Chemistry, any rebar necessarily contains two harmful impurities, Sulphur (S) and
Phosphorous (P) in extreme hot and Cold Conditions. Therefore Lower these values the better.

 UTS/Ys ratio and Percentage elongation are important properties in a rebar that reflect the ability to handle
the pressure of earthquake. Higher these values, the better.
 Market Analysis

 The market for the TMT Bars is very fragmented, in which a huge
number of mini sized and large sized players are involved.

 The steel industry, along with the TMT Bars sector, is now expecting to
gain momentum of good growth and development. The sale of
construction materials including TMT bars are estimated to grow at a
Compounded Annual Growth Rate of 6.18% in terms of volume.

 Currently, the size of the Indian construction industry is USD 2.8 billion.
Recently the government has announced an early completion of 10
million rural houses by the end of 2018, ahead of 2018 deadline and
11.8 million urban houses by 2020 instead or 2022 deadline under the
“Housing for All” initiative. This will require a huge amount of TMT bars
and we expect multifold growth in demand in the coming years.
 Increase in demand for low cost reinforcement bars in construction
projects such as dams and bridges drives the global thermo- mechanically
treated steel bars market.

 Rise in government support for the production of steel and coal propels the
thermo- mechanically treated steel bars market.
TMT Steel Use in North India

Total estimated TMT steel use- State Wise 2019-20 (thousand tonnes)
900
840
800 750

700

600
TMT Steel USE

500

400

300
222
200

100 68.4

0
Delhi & Haryana Uttar Pradesh Himachal Pradesh Rajasthan

States

Delhi & Haryana Uttar Pradesh Himachal Pradesh Rajasthan

 Target Customers :

TMT buyers can be classified into three different classes.

Class 1 Individual (who purchase for individual use)

Class 2 Middleman (Contractors, who make purchase decisions
for others)
Class 3 Builders & Bulk Buyer/Government Supplier
 Benefits of using Fe 550D

 Reduced of Steel Consumption :- Designing structures with Fe

550D reduces the Steel Consumption by 12-15% with
optimization.

 Reduced Bar Congestion : Using Stronger grade steel means

reduction in bar diameter that results in increased bar spacing as
fewer rebars are needed.

 Reduction in Labour Cost: Using lesser steel require less labour

and saves on labour cost.
 Faster Construction: Less time is wasted on
placing/typing of bars. And less weight on cranes
improves construction efficiency.

 Bigger Savings : Since Fe 550D rebars are stronger

than other rebars, the overall steel consumption
comes down leading to cost savings.
 Why Tata Tiscon Fe 550D

 Excellent bond Strength with Concrete.

 Superior Earthquake resistant qualities due to high capability
of absorbing energy.
 A highly controlled steel chemistry with very low level of
Sulphur & phosphorous.
 Tata Tiscon Unique Service Offerings
References :

 Selling by Piece – Every Tata Tiscon rebar is sold in a standard length of 12 metres
thereby removing the hassle of weighment.

 Free Home Delivery – Tata Tiscon rebars are delivered by the dealer at the work site of
the Customer free of charge.

 Recommended Consumer Price(RCP) – Tata Tiscon rebars are sold at RCP for better
transparency. The RCP’s are displayed at all dealer outlets.

 Availability – Tata Tiscon rebars are available across India at more than 1800 authorized
dealer outlets.
 Application of Fe 550D

Tata Tiscon 550D is available for all reinforcement applications

ranging from small individual houses to large infrastructure
projects.

 Modern Tall Building

 Rail & Metro Networks
 Ports
 Bridges
 Airports
 Market Size
Expected to reach
$389.5 million USD
by the end
2025

Base Year
CAGR 7.5% (2019 – 2025)
 Strategy for Individual Buyer

 Branding and Promotion

 Educate buyers about your TMT’s differentiation and competitive advantage

through ‘direct competition compare charts’ at point of purchase.

 Plan campaigns for dealers and contractors to develop their interpersonal skills
for educating customers about your brand and managing strong retailer’s push
for your product.

 Entertain and educate contractors/architects through special meet ups,

gatherings and events, arranged exclusively for them.
 Pay attention for transportation: This plays an important part
as buyers expect some additional favors for selecting your
product.

 Develop your dealer’s interpersonal skills for exhibiting

positive and helpful attitude towards customers, through various
educative sales programs for channel partners.
 Strategy for Middleman/Contractor/Architect

 Organize educational meet ups and events.

 Distribute useful branded small articles to regular buyers through dealers
and distributors
 Special offers and discounts, loyalty bonus and lucrative gifts for loyal
influencers.
 Take feedback with photograph from few of them and publish in your
promotional materials, with an effective campaign.

We always involve ourselves in a buying decision of any household goods like a TV, which costs a
few thousands of rupees. Do we do the same while buying rebars, which may cost over a lakh of
rupees and has a shelf life of a Lifetime.
 Strategy For Bulk Buyer -Builder/Government Supplier

 One to one discussion

 Word of mouth
 References
 Personal attention and healthy negotiations with constant
tapping
 Factor Affecting Pricing Strategy :

1. Production Cost
2. Market demand
3. Competition
4. Government Regulations

Price also depend on input cost like Scrap, iron ore, Coal, Coke.
Pricing Strategy adopted by Tata Steel is the Market Penetration strategy. This Strategy is based on the
assumption that demands for the product is highly elastic.
Low Economic Activity in Outbreak will impact Steel Prices
 SWOT
ANALYSIS

STRENGTHS

T H R E AT S S •
•
•
Market Position
Trust of TATA
Integrated Steel operations
• Intense competition: Tata Steel faces stiff • Global footprint
competition from industry giants such as

T
JSW Steel, Essar Steel, etc.

W
• Government and Environmental
regulations
• Decreasing global steel prices
WEAKNESSES

O
• Increasing debt-to-equity ratio
OPP ORTUN ITIES • Depends on domestic and a few
international markets for
• Increasing demand for steel generating business.
• Adapt newer technologies
• Growing manufacturing, construction and
automotive industry around the world
 Porter's five forces Analysis
Threat of new entrants (Low)
 No threats
 In term of Economies of scale: Tata Steel being an
integrated steel company has its own mines for
key raw materials
 In term of Government Policy: Tata Steel being a
century old company under the flagship Tata Sons
that is known for CSR.
 In term of Product differentiation: Tata Steel still
enjoys a premium for their products because of its
quality and its brand value created more than 100
years back.
Bargaining power of suppliers
(Medium)
 The bargaining power of suppliers is
low for ISP as they have their own
mines of key raw material like iron ore
coal. However, those who are non-
integrated or semi integrated has to
depend on their suppliers for example
SAIL, which imports coking coal.
Threat of substitutes (Low)
 Low threat of substitutes
 Aluminium and plastics are being
used in few cases in automotive and
other consumer durable sectors.
However, it still does not pose
Competitive rivalry (Medium) significant threat to steel
 The steel industry is highly concentrated,
with the top five players accounting for more
than 70 per cent of the market share
 Price is generally market determined. Steel
companies usually compete on the basis of Bargaining power of
production capacity, economies of scale,
access to raw material, etc. customers((Medium))
 Major steel consumption sectors, such
as automobiles, oil & gas, shipping,
consumer durables and power
generation, enjoy high bargaining
power and get favourable bulk deals.
Smaller customers, however, do not
enjoy this benefit
 Competitors :

1. Jindal Panther TMT bars(JSPL)

Net Sales (in crores)
2. JSW Neo Steel
90000
3. SAIL 80000

4. RINL (RASHTRIYA ISPAT NIGAM LTD) 70000

70611
66967
76727

60000
5. Electrosteel Steels Limited 50000

Net Sales
6. Shyam Steel 40000

7. Bhushan Steel
30000

20000

8. Arcelor Mittal 10000 12585

9. Essar Steel Ltd 0

Tata Steel Ltd SAIL JSW Steel 1232.4
Kamdhenu 815.3
VISA Steel Jindel Steel

Primary and Secondary Manufacturer

 Tata Steel Value chain

RAW IRON STEEL DOWNSTREA MARKETING CUSTOMER

MATERIA MAKIN MANUFACTURI M & SALES S
LS G NG PROCESSING
 References :
1. http://www.tatatiscon.co.in/product-brochures/500D%20bro.pdf

2. https://www.jindalsteelpower.com/

3. https://www.ibef.org/download/Steel-August-2015.pdf

4. https://aashiyana.tatasteel.com/

5. https://www.marketing91.com/marketing-mix-tata-steel/#:~:text=Price%20in%20the%20Marketing
%20Mix%20Of%20Tata%20Steel%20%3A,-At%20the%20end&text=Tata%20Steel%20believes%2
0a%20perfect,capture%20a%20greater%20market%20share.

6. https://www.mbaskool.com/brandguide/industrial-products-and-chemicals/4303-tata-steel.html
7. http://www.tatatiscon.co.in/home-builders/product-estimator.aspx
THANKS