Reliance

Mission, vision og værdier

Mission
Reliance’s mission er:

 At yde den bedste og mest værdiskabende rådgivning inden for investor relations, finansiel
kommunikation, medierådgivning, krisekommunikation og issues management
 At være uafhængig sparringspartner og yde excellent rådgivning for vores kunder i forbindelse
med børsintroduktioner, ECM- og M&A-transaktioner (aktiekapitaludvidelser, fusioner samt
køb og salg af virksomheder), corporate governance-relaterede forhold samt ved etablering af
beredskab ved overtagelse (kommunikation)

Reliance’s virke skal være til gavn for både vores kunder, samarbejdspartnere, medarbejdere og
aktionærer.

Vision
Reliance’s vision er:

 At være kundernes ’first call’ og foretrukne samarbejdspartner inden for vores kerneområder
 At overgå kundernes forventninger til professionel og værdiskabende rådgivning på konsistent
vis

Vores målsætning er langvarige og tillidsfulde kundeforhold skabt gennem excellent rådgivning og

service.

Værdier
Vi er styret af vores grundlæggende værdier:

 Kvalitet: Vi går ikke på kompromis - vi har en passion for den bedste kvalitet
 Innovation: Vi er innovative og vil begejstre vores kunder
 Ambition: Vi sætter høje mål og presser på for at opnå de bedste resultater
 Ærlighed: Vi er ærlige over for vores kunder, også når det gør ondt på dem
 Integritet: Vi holder ord, værner om fortrolighed, og har en høj grad af integritet
Tata Steel
Mission,
vision and
values

OUR MISSION

Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives to
strengthen India s industrial base through the effective utilisation of staff and materials.
The means envisaged to achieve this are high technology and productivity, consistent
with modern management practices.

Tata Steel recognises that while honesty and integrity are the essential ingredients of a
strong and stable enterprise, profitability provides the main spark for economic activity.

Overall, the Company seeks to scale the heights of excellence in all that it does in an
atmosphere free from fear, and thereby reaffirms its faith in democratic values.

OUR VISION

Notes on Vision 2007

 To seize the opportunities of tomorrow and create a future that will make us
an EVA positive company: To be on the lookout for and shape the opportunities
to get the first-mover advantage and remain ahead of competition. The
opportunities could exist in emerging technologies, new business models, value
creation, customer service, new products, services or businesses, financing
options etc. To mobilize all resources and efforts through value based
management that will help us earn returns better than the cost of capital. The
equation below shows that the EVA is positive when the RONA is greater than
the cost of the capital invested.
 
EVA = (RONA – WACC) X Invested Capital

EVA Economic Value Add

RONA Return on Net Assets (= Net Operating Profit After Tax/ Net Assets)

WACC Weighted Average Cost of Capital

Our resolve to become EVA positive is significant in the context of industry structure for
steel business worldwide. There are few steel companies that have returned value
consistently. We believe that Tata Steel can do so based on its strengths and new
initiatives.

 To continue to improve the quality of life of our employees and the

communities we serve. Tata Steel will continue to be guided by the TATA
group’s endeavour to improve the quality of life of the communities we serve
(e.g. Customers, customers’ customers, suppliers, governments, shareholders,
local community etc). The company has always tried to maintain a good quality
of life for its employees. The company, ahead of any legislation, introduced
provident fund, maternity leave, eight hour working etc. Similar spirit will
 continue to guide our future efforts in improving the quality of life of our
employees.
 Revitalize the core business for a sustainable future: The core business is
sought to be revitalized by a comprehensive set of initiatives under the ASPIRE
program. Aspirational initiatives will be taken in each area of our enterprise to
reduce costs and enhance revenues coupled with finance prudence to galvanize
the core business into an attractive investment option. By making the core
business EVA positive we wish to ensure its long term sustainability.
 Venture into new businesses that will own a share of our future: By the year
2007 we expect to enter into at least one major new business that would have
grown comparable in size to the core business. We also expect to continuously
evaluate and expand the new businesses to compliment the cyclical nature of the
steel business.
 Uphold the spirit and values of TATAs towards nation building: Even as the
face of the new business may be fundamentally different from our existing core
businesses what will bind them together will be the spirit and the values of
TATAs. It is our belief that upholding these values will continue to be the reason
for our enduring success and respectability.

 Strategic Goals:

 Move from commodities to Brands: To beat the industry trend in a situation of

over-supply we need to move away from selling commodities by converting them
into Brands. Even as we will continue to leverage and take to greater heights the
value of TATA brand, there will be efforts to create new images and associations
for our services and products in current as well as new businesses.
 EVA Positive Core Business: At the present level of investment, we require a
PBT of Rs 800 to 1000 Cr (at MAT level of taxation the PBT requirement is at Rs
800 Cr) to become EVA positive. We expect to complete this journey in about 3
years time. Our effort will be to maximize the present value of future EVA so that
the investor confidence is restored and reinforced in the core business. In the
context of industry structure, the company intends to make it possible through the
ASPIRE program.
 Continue to be lowest cost producer of steel: We acquired the status of the
lowest cost producer of steel in 2001. The world outside is, however, changing
fast and the lowest cost status is constantly under threat from new technologies,
currency depreciation in other countries, cost escalation of raw material inputs,
energy and labour etc. Maintaining the world benchmark will be one of the
greatest challenges for the core steel business.
 Value creating partnerships with customers and suppliers: We recognize the
value of partnerships and so do our customers and suppliers whom we have
helped grow in the past. We respect these relationships and wish to carry them
forward by creating mutually value-adding partnerships. We hope to build the
new business models by forging alliances with our customers and suppliers to
strengthen the value chain helping us reduce the system costs, improve service
levels, reach and offer new products and services.
 Enthused & Happy employees: A lot is dependent on the individual spirit and
enthusiasm of the employees to realize our vision. We will accelerate our efforts
to provide a work environment that will ensure a sense of purpose and personal
growth for each individual. We wish to see the smile on every face every day.
 Sustainable Growth: We wish grow but intend to temper our ambitions for
growth with financial prudence to ensure a long-term sustainable future. While
we will be willing to experiment and take the risk with new business models and
 ideas, we wish to fuel our growth ambition on conservative financials.

Strategy

 Manage Knowledge: We recognize and endorse the importance of knowledge as

a source of innovation and competitive advantage. We wish to leverage all our
associations within and outside the company to harness the ideas and provide the
means for exchanging and growing knowledge. Company has started the efforts
to create an atmosphere where free exchange of knowledge is amongst its 46000
plus employees and has created the infrastructure to enable this exchange.
 Outsource Strategically: The non-core activities and the activities that could
help us grow by leveraging our brand image without parting with sources of
competitive advantage would be selectively outsourced.
 Encourage Innovation and Allow the Freedom to Fail: Value based
management to make the core business EVA positive will be highly dependent on
innovation. Active and visible encouragement for innovation seeking behaviour
will be provided to one and all. A culture of taking calculated risks will be
nurtured by allowing the Freedom to take those risks without the fear of
reprimand for failure.
 Excel at TBEM: The TATA Business Excellence Model, which lays stress on
Results through the processes of Customer & Market Focus, Strategic planning,
Information & Ananlysis, Human Resource Deve