Preface: Organisational Profile Abbre

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1 TRF LIMITED ORGANISATIONAL PROFILE - 1 Name of the Operating Division Bulk Material Handling Equipment Division Bulk Material Handling Systems Division Port & Yard Equipment Division York Transport Equipment (Asia) Pte Ltd * Dutch Lanka Trailers Ltd. * Aditya Automotive Applications* JV of TRF, Tata Cap. and Jasper Ind. Preface: Organisational Profile Abbre Activity (Products and Services) viation BMHE Design, Manufacture, Installation and Commissioning of bulk material handling & allied equipment. BMHS Design, Supply, Erection and Commissioning of Systems & allied services for bulk material handling. Design, Supply, Erection and commissioning of Port and Yard Equipment & allied services. Engineering, Procurement and Construction of projects for Mini Blast Furnaces and Mini Sinter Plants. YORK Marketing, Manufacturing and supply of various undercarriage components of trailers DLT Manufacturing, selling trailers in India and export to 30 countries. Also engaged in repairs, maintenance and service business for trailers. AAA Provide end to end solutions through fabrication and machining for vehicles to be used as tippers, load bodies, trailers, refrigerated bodies, etc. Operating from Jamshedpur Jamshedpur Kolkata Singapore Sri Lanka Lucknow * Please note that these subsidiaries / JVs are not in the scope of External assessment of TRF Ltd. Fig. P.1-1: Operating Divisions of the Company P.1: TRF Limited (formerly Tata Robins Fraser Limited) was promoted by TISCO, ACC, Hewitt Robins Inc (USA) and Fraser-Chalmers Division of GEC (U.K). The Company with its Registered Office and Works at Jamshedpur, started its commercial operations in 1965 and over the years has emerged as a leading source of bulk material handling equipment and systems in India. With effect from 1 st April 1999, two other Group Companies, namely, TATA MATERIAL HANDLING SYSTEMS LTD (TMHS), (formerly TATA MAN-GHH), established in 1979, and TATA TECHNODYNE LTD (TTDL), established in 1997, were merged with TRF. Post merger business of TRF is being conducted through 3 operating divisions as shown in Fig. P.1-1. The company s business is predominantly tender driven (achieving L1 position is a must, with no opportunity of price adjustments), the key requirement being the delivery of engineered-to-order products, equipment, systems and services and warrants competencies in design, procurement, manufacturing, project and site construction management. The business typically has a) Long time gap between tendering and order finalization and b) Execution spanning up to 3 years. P.1 a.(1) Main Product and Services: Products and services offered are given in Fig. P.1-2. BMHE designs, manufactures and delivers its equipment and small Material Handling projects (including erection and commissioning of equipment, trials and performance guarantee tests) either direct to end-users or to other divisions of the company or to other EPC firms. BMHS delivers systems and / or services directly to end-users or to EPC firms. The systems include a) Complete design, b) Procurement of equipment and systems from either BMHE or other manufacturers, c) Fabrication of structures (building & technological), d) Construction of civil foundations and buildings, conveyor galleries etc., e) Installation and commissioning of supplied equipment and f) System trials and performance guarantee tests. delivers its equipment and / or services directly to end users or to EPC firms. The scope of work includes a) complete design, b) Procurement of inputs from either BMHE or other manufacturers c) Erection and commissioning of equipment and d) Trials and performance guarantee tests. BMHE BMHS Various Conveyor components, Trippers, Shuttle Conveyors, Apron & Plough feeders, Un-balanced motor feeders etc. Wagon tipplers, Wagon Marshalling Equipment. Vibrating Screens, Crushers, Scalpers etc. Mining Vehicles(Std. &Low Ht.Side Discharge Loaders ) Yard equipment - Stackers, Reclaimers (Bucket wheel), Barrel Reclaimers, Radial stacker Reclaimers, Stacker cum Reclaimers, Scrapper Reclaimers Bulk Material Handling Systems, comprising o Conveyor System in-plant as well as overland o Crushing & Screening systems o Raw material storage / reclaiming systems o Bulk material Loading/ Un-loading systems Operation, Maintenance & refurbishment services for Port & Yard Equipments. Port Equipment - Port and Ship yard Cranes, Ship loaders & unloaders, container cranes Fig. P.1-2 Products and Services Offered by the Four Operating Divisions

2 TRF LIMITED ORGANISATIONAL PROFILE - 2 P.1 a(2) Values-Mission-Vision: Vision 2013: We will grow five times in five years and become a Rs.2500 Crore company by 2013, by enhancing focus on material handling business and entering new businesses as necessary. We will expand our business on sustainable basis by building a team that is passionate about serving all its stakeholders and is committed to making Trust, Respect and Fellowship, a way of life. Strategies have been developed to achieve the desired Vision (see annexure: Strategy Map). The Company has adopted Tata Code of Conduct (TCOC) since inception. TRF has articulated and communicated values as TRUST, RESPECT, FELLOWSHIP, EXCELLENCE and RESPONSIBILITY amongst all stakeholders which would be permanent in nature. TRF has also established its Business Principles as SENSE OF URGENCY, CONTINUOUS IMPROVEMENT and CONSISTENCY AND DETAIL. Mission of the company: To be an international leader in material handling equipment, processes and systems. Competitive position is reviewed and strengthened through appropriate leveraging of our core competencies as shown below: Major Relationship with key Elements of Mission / Vision Core Competencies Project Management Basic & Detailed Engineering Procurement Construction Manufacturing & Fabrication facilities Commissioning Grow 5 Times in 5 Years Expand Business Sustainable Growth Become an International Leader Safety, Health and Environment policy: TRF s Safety, Occupational Health and Environmental responsibilities are driven by our commitment to ensure zero harm to people we work with and our belief that safety and environmental concerns are integral to the way we do business. We basically believe that all injuries can be prevented and each one of us is responsible for it. We will identify, assess and manage our Safety, Health & Environment (SHE) Hazards, Risk and impact; We will build WILL & SKILL among our employees and partners for their involvement, responsibility and accountability to achieve sound SHE performance. We are committed to continual improvement in our SHE performance. We will truly succeed, when we achieve our Safety, Health and Environmental Goals and are valued by the communities in which we work. P.1 a(3) Workforce Profile: The Employee Profile for the Company s various divisions is given in Fig. P.1-3. Total number of employees as on is 796 of which 363 are unionized and are represented by the recognized union, Tata Robins Fraser Labour Union. The Company s business being Engineered-to-Order material handling equipment, the safety requirements are as per the Factories Act, which include providing of safety appliances, control of environment i.e. air and water quality, noise and illumination levels. Work at Construction sites also warrants the same besides safety of working at heights. Employee engagement and satisfaction surveys are conducted periodically to determine factors that motivate the employees in accomplishing the compan s Vision. (Elaborated in Chapter 5). Unionized Managers Office Shop-floor Executives(Levels 01 to 04) Officers(Levels 05 & 06) BMHS BMHE BMHG Total Educational level profile of Managers Nos % Engineers (BE / B. Tech., ME / M. Tech) Diploma Engineers

3 TRF LIMITED ORGANISATIONAL PROFILE - 3 ITI 22 5 CAs / ICWAs 11 3 Other Graduates Post Graduates Others 26 6 Total Fig. P.1-3 Employee Profile P.1 a(4) Major facilities, Technologies and Equipment: Technologies available with the divisions of the Company are detailed in Fig. P.1-4. New tie-ups with global leaders with a view to face emerging market needs are explored through a task force reporting to MD. Additionally the Company undertakes in-house development of new products. TRF engages renowned consultants to assist engineering and design products. Technologies available with TRF are given in Table- P.1-5 P.1 a(5) Regulatory Environment: The company s operations are governed by all rules and regulations applicable to Indian companies. There are no industry / product specific regulations. The company has been complying fully with all the regulations in course of company s operations and activities. For occupational health and safety, the company s operations and activities are governed by Factories Act. The designing / engineering of the company s equipment & systems, safety regulations & relevant industrial standards specifically required by the customers are fully complied with. Additionally Port & Yard Equipments are designed for more stringent specifications on safety and environment by following European standards. Inspection standards for Casting, Forging, Welding, Fabrication and Balancing are developed based on more stringent norms (viz. ISO 6520, VDI 2060/ISO1940, ASME SEC VIII and IX, EN1714, 1289 and other ASTM Standards) and not only on BIS. Technology Source, Absorption & Development Technology Original Technology Source (External) Equipment / Facilities Manufacturing (Including equipment for Machining / Fabrication, Assembly / testing) Absorption Source (External) Availability with the Divisions BMHE BMHS - - CAD facility for Design & Engg. Customized Project Monitoring facility - Construction Equipment - - Fig. P 1-4 Equipment & facilities Subsequent Technology Absorption In house Upgradation BMHE For idlers, pulleys Hewitt Robins, USA 100% NA NA On-going For Crushing equipment Hewitt Robins, USA 100% Kurimoto, Japan 100% On-going GEC, UK 100% Aubema, Germany 100% On-going For Screens & Vibrating eqpt. GEC, UK 100% Binder, Austria NA On-going For Feeders GEC, UK/ In house 100% Kurimoto, Japan 100% On-going development For Wagon Tipplers & GEC, UK 100% None NA On-going Marshalling Equipment For Wagon Loaders Developed in house NA None NA On-going For Mining Vehicles (SDL& LHD) Dalmen Haniel / 100% None NA On-going MAN GHH BMHS For Handling, loading / unloading Hewitt Robins, USA 100% None NA On-going systems, crushing, screening systems, stacking, reclaiming / blending systems For Coke Ovens Eqpt / systems Koch, Schalke On-going NA NA Coal Dust Injection system Claudius Peters Technologies On-going NA NA Conveyor Systems Hewitt Robins, USA 100% Bateman Tech Yet to receive an order and obtain the know-how. RBL-REI For Stackers, reclaimers, stacker MAN, Germany 100% Tenova 100% On-going cum reclaimer TAKRAF Port and Ship yard Cranes, ship MAN, Germany 100% None NA On- going

4 TRF LIMITED ORGANISATIONAL PROFILE - 4 loaders and unloaders Shipyard Goliath cranes & grab KOCKS Crane, On-going NA NA type ship loaders Germany Fig. P.1-5: Technologies Available with the Company P.1 b(1) Organisation Structure: Organisational structure is given in Annexure. P.1 b(2) Markets: TRF has a pan-india presence. YORK was acquired in October 2007 and has international presence in 9 countries. As mentioned earlier YORK operations is not in the purview of this external assessment. The customers of TRF have been segmented as per industry sector. In each industry sector, customers have been grouped under four heads as given in Fig. P.1-6. The buying behavior of customers is detailed in chapter 3.1. Their key requirements and expectations and the differences are detailed in figs. P.1-6. The business of the Organisation being essentially on made to order engineering equipments and systems, the requirements of other stakeholders emanate from customer satisfaction (refer strategy map) and are hence intertwined with the requirement of the customer. TRF s operations outside India have so far been in the area of export of equipment, either through Tata International or through other domestic customers. Industry Sector PRIVATE SECTOR FIRMS PUBLIC SECTOR UNDER-TAKINGS Customer Groups STATE GOVT. UNDER- TAKINGS EPC FIRMS POWER STEEL NA MINING NA PORTS Key Requirements of Products/Services A= Of Critical Importance; B= Of Major Importance; C = Of Medium Importance Price Competitiveness B A A B Delivery A B B A Quality/ Reliability A A C A Technical Features A B B A Operating Costs A B C B After Sales Service/Support Behavioral pattern Attributes A B C C 5 = MOSTLY FOLLOWED 1 = RARELY FOLLOWED * Negotiated price route may be available if the vendor has equity participation in the project. ** Pre tender tie-ups are likely to be followed in future. Pre-qualification norms L-1 practice (through tenders) Weightage to T Playing one against the other Single Party Negotiated Price * 1 1 * / ** Purchase preference to PSUs NA 5 3 NA Linked to Project Delivery Schedules Enquiry Norms 3 Completion Fig. P.1-6: Customer Groups of TRF P.1 b(3) Suppliers and Customers: As TRF is pre-dominantly in tender driven market, suppliers play a crucial role in keeping costs down and improving TRF s competitiveness. Site work is done through company or customer approved sub-contractors through competitive bidding. Proximity of the subcontractor to the customer site further enhances TRF s competitiveness. Vendors are facilitated to achieve self-certification for quality. Quality Assurance plans for vendors are developed by QA Dept. On time supply is key requirement for all the supplies. The key considerations for selection & award of work to a contractor / sub-contractor are a) Financial strength, b) Reference List, c) Resources available. The company also enters pre-tender tie-ups with select sub-contractors / suppliers. At product development stage or subsequently, inputs are brought into the Organisation by these vendors / contractors / subcontractors and are built into product through process reviews and evaluations. P.2 a(1) Competitive Position: The company in all areas of its business faces fierce and cut-throat competition both from small as well as big players. To maintain its competitive position, company

5 TRF LIMITED ORGANISATIONAL PROFILE - 5 focuses on reduction of fixed and overhead expenses and strict control on variable costs, thereby keeping price low. Division wise competitive position based on Market share (% of value of orders secured out of orders finalized where TRF has pre-qualification) is given in Fig. P.2-1. Competitive Position (As per Market share Apr-Feb ) BMHS Rank 01 with 61% Market Share BMHE Rank 01 with 69% Market Share Rank 01 with 38% Market Share Fig. P.2-1: Competitive Position P.2 a(2) Key Success Factors: The principal success factors for TRF, vis-a-vis competition have been: 1) Reference List; 2) Price competitiveness; 3) Delivery compliance; 4) Responsive engineering; 4) Manufacturing infrastructure; 5) Comprehensive product range; 6) Reliable Equipment and 7) Comprehensive after sales service. The major changes taking place in the market, affecting the company s competitive position are: a) competitive rivalry very intensive; b) stiff payment terms; c) private sector companies opting to play one bidder against other; d) hard negotiation by PSUs and State Government undertakings even after becoming L-1 and e) buyer and supplier power. P.2 a(3) Comparative and Competitive Data: Financial data are available as published by competitors. Other Financial and Workforce performance data is benchmarked with Tata Steel Group companies. Product related data is collected from the field. Various other data are sourced from market intelligence, suppliers, bid opening details, interactions with customers and quotations received from competitors for products. However, the fiercely competitive nature of business and sudden death nature of tendering process hinders publication of data other than those statutorily indicated. P.2 b Strategic Context: The key strategic challenges for the company are: Strategic Challenges Shortage of orders in the economic downturn Business Oversight of acquired business Operational Civil & structural capability Marketing capability Robust project management capability Human Resource Retaining talent Key strategic advantages for the company are a) TATA Co/TATA name b) York brand, c) Reliable & proven products with wide range. d) Own manufacturing set-up e) Fairly strong & stable balance sheet /clean balance sheet, f) God industrial relations & receptive workforce & g) Diversified business. Key threats and opportunities from potential international players are: Extend value chain in the existing business ( Increase capacity of existing range of equipment and system and / or enter BOP, pipe conveyor. Spares, Operation and maintenance Business Concept to commissioning project business model MNCs with extended range of products with better technology in India. Proliferation of competitors. TRF is now strategically growing organically and inorganically to ensure lower dependence on tenderdriven business and hedge against the cyclicity of the industry. TRF enjoys good industrial relations and has a very receptive workforce which is the main foundation for ensuring Organisational sustainability. P.2 c Performance Improvement: Improvements at TRF are achieved as follows: TRF has introduced 04 major improvement initiatives in the last months: 1. TOC-CCPM for managing projects of BMHS and 2. Six Sigma at BMHE 3. Flow Control at BMHE 4. SAP Upgradation Small Group Activities (SGAs) Cross Functional Teams (CFTs): improvement projects undertaken at operational level and for improving key work processes as required. Teams are formed based on the need of the improvement project and are disbanded soon after achieving the targets. The KPMs of the targets continue to be monitored even after completion to ensure that the gains are maintained. Quality Circles (QCs): applicable for workers and the teams are permanent in nature. The team generally solves problems specific to their area of work and within their control.

6 TRF LIMITED ORGANISATIONAL PROFILE - 6 Suggestion scheme: open to all employees