Report

MALAYSIA
Malaysia represents one of Southeast Asia's most vibrant economies, the
fruit of decades of industrial growth and political stability. The country has
an open economy where exports plays a major role, contributing a large
portion of the country's total GDP. Malaysia's GDP growth rate is expected
to grow at an average of 5% to reach $434 billion by 2017. The Malaysian
government plans to carry on with the growth momentum to transform
the country into a high income nation by 2020.
A leading global management consulting and market research firm, has
conducted a competitive analysis on this country and presents its findings
in "Malaysia Country Analysis 2012-2017: An Evaluation of Political, Social,
Economic and Business Risk". This study provides a concise overview of
the political, economic, social, technological and business risk associated
with the country and the forecast of GDP and population for the next five
years.
Lucintel's analysis underlines that the most attractive part of Malaysian
economy is its political stability. The ruling political party of the country
(Barisan Nasional) has been in power since its independence. The
government also has focused on the adjustment of fiscal policy to boost
revenue and cut down expenditures and aims to deflate the revenue by
3% of GDP by 2015.
Malaysia country analysis report highlights on different aspects of the
country including geographical location, economic performance, quarterly
trend, sectoral contribution, FDI by industry, trend of population, per
capita income, trend of inflation, balance of payment, budget deficit, trade
structure, foreign exchange reserve and exchange rates, R&D expenditure
etc.

Doing Business in Malaysia

Market Overview

For centuries, Malaysia has profited from its location at a crossroads of

trade between the East and West, a tradition that carries into the 21st
century. Geographically blessed, peninsular Malaysia stretches the length
of the Strait of Malacca, one of the most economically and politically
important shipping lanes in the world. Malaysia leveraged its strategic
location to become one of the largest producers and exporters of tin,
rubber and palm oil. Malaysia has been able to transform its economy
from overdependence on raw materials and agriculture to a relatively
high-tech, competitive nation. Services and manufacturing now account
for nearly 75 percent of GDP (51.2 percent in services and 22.9 percent in
manufacturing in 2014), while agriculture accounts for 8.9 percent,
according to the World Bank.

Malaysias population was 31.3 million as of December 2015. According to

Bank Negara Malaysia (Malaysias Central Bank), Malaysias GDP in 2015
was valued at US$296.7 billion. In 2016, Malaysia GDP growth is projected
be 4.4 percent. GDP growth was 5.0 percent and 5.9 percent in 2015 and
2014, respectively. Malaysia is continuing efforts to boost domestic
demand and reduce the economy's dependence on exports. Nevertheless,
exports - particularly of electronics, oil and gas, palm oil and rubber -
remain a significant driver of the economy. Gross exports of goods and
services constitute more than 80 percent of GDP, with 15.8 percent of
Malaysias exports going to China, its top trading partner. Chinas
weakened demand and falling global commodity prices have slowed
Malaysias prospects for economic growth.

In 2015 and 2016 Malaysias currency, the ringgit, faced downward

pressure due to declining exports and strained government
finances. For example, in 2014, the average exchange rate for the
Malaysian Ringgit against the US Dollar was US$1=RM3.27,
whereas the 2015 and 2016 (Q1-Q2) average was exchange rate
was US$1= 3.9 and US$1=RM4.10, respectively. Malaysias
economic headwinds have made the governments attempts to rein
in the budget deficit more challenging. This has a dampening effect
on consumer sentiment and spending.
Malaysias total trade for 2015 was US$376 billion. China is the top
trading partner with 15.8 percent market share. Next is Singapore
with 13.0 percent market share, followed by the EU with 10.1
percent, the U.S. with 8.8 percent, Japan 8.7 percent, Thailand 5.9
percent, Taiwan 4.1 percent, Indonesia 4.1 percent, South Korea 3.8
percent, Hong Kong 3.3 percent, and India 3.2 percent. 54 percent
of Malaysias imports came from East Asia, with the largest share
from China. The advanced economies (the United States, EU, and
Japan) accounted for 26 percent of imports.
Though overall Malaysian Foreign Direct Investment (FDI) to the US
is relatively low at US$1.587 billion, Malaysia was the fifth fastest-
growing source of Foreign Direct Investment (FDI) into the United
States in 2014 (by UBO).
Malaysia is an attractive destination for U.S. exporters. In addition to
Malaysias attractive business environment and market potential,
top reasons why U.S. companies should consider exporting to
Malaysia include widespread English usage, relaxed foreign
exchange, ability to repatriate capital and profits, a well-established
legal framework, good infrastructure, and an affinity for United
States products.

Market Challenges
Malaysia restricts open trade in protected industries, such as the
automotive and agricultural sectors. Malaysia protects domestic
industries by imposing higher duty rates and excessive excise
taxes. Malaysia also uses a system of import permits or licenses to
reduce imports in protected and strategic sectors.
 Government restrictions hamper foreign involvement in several
areas, including government procurement contracts; financial,
business, and professional services; and telecommunications. In
many cases it is imperative to have a local partner, usually
a Bumiputra (ethnic Malay-owned) company, to effectively compete
in the market.

Malaysian officials continue to make progress in establishing fair and

adequate protection of IPR. Although challenges remain, Malaysian
officials have augmented their resources to combat online piracy
and have sustained their efforts to deny access to piracy websites,
taking down infringing content on domestic sites, and conducting
raids and arrests of Malaysians either operating or posting links to
sites with pirated content. The Ministry of Domestic Trade,
Cooperatives and Consumerism (MDTCC), responsible for IPR
enforcement, has been largely dependent upon complaints from
companies to take action on transshipments of pirated goods.

In the World Banks global Doing Business 2016 report, Malaysia

ranked 18th place overall among the 189 economies covered in the
survey. The 2016 ranking is a slight decrease from 2015, where
Malaysia ranked 17 out of 189 economies. Malaysias lowest topic
rankings are in registering property (38th), enforcing contracts
(44th), trading across borders (49th), and resolving insolvency
(45th). Despite the fact the Malaysian economy is facing some
turbulence, Malaysia has solid growth prospects and a rising middle
class. In 2015 Malaysias per capita GDP was US$9,556.8 (current
U.S. prices), when adjusting for purchasing-power-parity (PPP),
Malaysias 2015 per capita GDP is US$26,314.8. Its purchasing
power is among the third highest in ASEAN, after Singapore and
Brunei.
Malaysias level of economic development drives both consumer
and business demand for products and services. Its consumers,
though price sensitive, are accustomed to several decades of
strong growth. Thus, they are attracted to and are familiar with
international branded products, better education, quality
healthcare products and services, as well as ecological lifestyle
offerings. The World Bank classifies Malaysia as an upper-middle
income nation

Market Entry Strategy

Most exporters find that using a local distributor or agent is the
best first step for entering the Malaysian market. A local
distributor is typically responsible for handling customs clearance,
dealing with established wholesalers/retailers, marketing the
product directly to major corporations or the government, and
handling after-sales service. Exporters of services generally also
benefit from use of local partner.
 Sales to the Government of Malaysia, Government Linked
Companies (GLC), or for procurement in priority sectors favor
local agents and/or a joint venture partners that are classified as
a Bumiputra (Malay) company. The term Bumiputera refers to
individuals who are ethnically Malay. A Bumiputra company is
defined as a company that fulfills the following criteria:
o Established under the Companies Act, 1965
o Paid-up capital of at least RM25,000
o Shareholders are 100 percent Bumiputra
o Board of Directors are at least 51 percent Bumiputra
o Managerial and Professional Staff are at least 51 percent Bumiputra
o Supporting Staff are at least 51 percent Bumiputra
The Malaysian government and GLCs make use of offsets and other
measures to encourage technology transfer, particularly in defense
procurements. The Government of Malaysia and GLCs also look
favorably on U.S. companies that have a long-term presence in the
local market. Therefore for strategic or large-scale market entry,
U.S. companies typically find they are treated more favorably when
they are willing to establish a local office, hire Malaysians, engage
in training, undertake some amount of local assembly or
production, or at least plan regular and frequent trips to maintain
relationships and presence.
In sectors that are not government dominated, companies, agents,
or distributors should be selected based on competitive
considerations (e.g. technical grounds or product knowledge).
However, since the Malaysian market is a very relationship-oriented
market, having a local presence or local agent can influence the
final outcome.

Trade Barriers and Standards

Malaysia's ease of trading across borders remains highly ranked in

international comparisons. However, is it not a free and open market.
Malaysias import barriers are aimed at protecting the environment and
strategic sectors as well as maintaining cultural and religious norms.
Technical barriers such as halal certification for the importation of meat
and poultry are regulated through licensing and sanitary controls. All
imported beef, lamb, and poultry products must originate from facilities
that have been approved by Malaysian authorities as halal or acceptable
for consumption by Muslims.
Pork and pork products may be imported into Malaysia only if Malaysia's
Department of Veterinary Services (DVS) issues a permit authorizing its
importation. Each consignment of pork and pork products must be
accompanied by a valid import permit issued by the Malaysian Quarantine
and Inspection Services, Malaysia (MAQIS) permitting the importation of
pork and pork products into Malaysia. The permits are granted on a case-
by-case basis and are sometimes refused without explanation.
In 2011, Malaysia implemented a food product standard MS1500:2009
which sets out general guidelines on halal food production, preparation
and storage, which many exporters consider it much stricter than the
multilaterally-agreed Codex Alimentarius halal standard. This new
standards require slaughter plants to maintain dedicated halal facilities
and ensure segregated transportation for halal and non-halal products.
Malaysia also requires audits of all establishments that seek to export
meat and poultry products to Malaysia, an issue on which the United
States has raised concerns.
In January 2012, the Malaysian Department of Standards implemented
MS2424:2012 General Guidelines on Halal Pharmaceuticals, a voluntary
certification scheme. The guidelines enabled manufacturers of
pharmaceutical products to apply for halal certification and established
basic requirements for manufacturing and handling.
Malaysia is not party to the WTO Government Procurement Agreement,
and as a result foreign companies do not have the same opportunity as
some local companies to compete for contracts, and in most cases are
required to take on a local partner before their bids will be considered. In
domestic tenders, preferences are provided to Bumiputra (Malay)
suppliers over other domestic suppliers. In most procurement, foreign
companies must take on a local partner before their tenders will be
considered. Procurement also often goes through middlemen rather than
being conducted directly by the government, or is negotiated rather than
tendered. International tenders generally are invited only where domestic
goods and services are not available.
The services sector constitutes 51.2 percent of the national economy and
has been a key driver of economic and job growth in Malaysia in recent
years. Since 2009, Malaysia has liberalized 45 services sub-sectors.,
Malaysia allows 100 percent foreign equity participation in private hospital
services, medical specialist clinics, department and specialty stores,
incineration services, accounting and taxation services, courier services,
private universities, vocational schools, dental specialist services, skills
training centers, international schools, vocational schools for special
needs. The Malaysian government added an 18th sub-sector of quantity
surveyors services. In November 2014, the Lower House of the Parliament
passed amendments to laws governing architectural services, quantity
surveying services, and engineering services, which eased restrictions on
foreigners working in these professions in Malaysia. The amended
legislation on architectural services came into force in June 2015. The
Ministry of Works is expected to finalize its review of the amendments
affecting quantity surveying and announce the beginning of
implementation in early 2016.
Malaysia has an export licensing system. In some sectors, Malaysia
maintains tax programs that appear to provide subsidies for exports. In
other cases, the goal is to restrict exports of specific commodities. For
products such as textiles, export licenses are used to ensure compliance
with bilateral export restraint agreements. For other products, such as
rubber, timber, palm oil, and tin exports, special permission from
government agencies is required and the country taxes these exports to
encourage domestic processing. Malaysia is the second largest producer
and exporter of palm oil and palm oil products. Malaysia accounts for
approximately 39 percent of world palm oil production and 27 percent of
world trade in vegetable oils. In March 2016, Malaysia raised its tax on
crude palm oil (CPO) exports to 5 percent ending a duty-free policy held
since May 2015. The reintroduction of the export tax is aimed at
discouraging the export of CPO and to encourage local refinery. Refined
palm oil and products made from palm oil are not subject to export taxes.
Trade Standards

Overview
Standards are widely used in all sectors of Malaysian society, and the
national standardization system uses a consensus process to develop new
standards, allowing manufacturers, traders, consumers, government, and
others to provide input and consideration into the development process.
Malaysia adheres to the WTO's Standard Code" on Technical Barriers to
Trade. SIRIM Berhad, formerly known as the Standards and Industrial
Research Institute of Malaysia, is the government-owned company
providing institutional and technical infrastructure for the Government.

Product Certification
Malaysia is part of the Asia Pacific Economic Cooperation (APEC) Mutual
Recognition Arrangement (MRA). This is a multilateral arrangement
between the U.S. and the economies of twenty nations, most of which are
located in Southeast Asia. The purpose of the APEC MRA is to facilitate
trade, promote market access, reduce or minimize non-tariff trade
barriers, and arrive at a Mutual Recognition Arrangement of conformity
assessment processes. All economies in the APEC Arrangement, including
Malaysia, are already in the first phase (Part I), which encompasses
mutual recognition of test reports. Many economies, including Malaysia,
are ready for the second phase (Part II), which is an acceptance of product
approvals / test reports from one another. Only four APEC economies are
ready for Part III, mutual certification acceptance, and Malaysia is not one
of these economies.
Accreditation

The Department of Standards Malaysia (DSM) was established following

the establishment of SIRIM to undertake the statutory roles in national
standardization formerly carried out by the Institute. It operates as the
sole national accreditation body in the country. DSM provides
accreditation services to certification bodies, inspection bodies, and
testing and calibration laboratories. DSM is responsible for processing
applications for accreditation and their submission to the Director General
who, in successful cases, issues certificates of accreditation. DSM fee
structure for accreditation is: (a) application fee RM5,000; (b) annual fee
RM5,000; (c) Assessment fee RM1000 per man-day. An accreditation
certificate is valid for three years. See the Conformity Assessment section
above.
Publication of Technical Regulations

Malaysia is a member of the World Trade Organization (WTO). Under the

WTO Agreement on Technical Barriers to Trade (TBT Agreement),
members are required to report all proposed technical regulations that
could affect trade with WTO member countries.
Additionally, Malaysias legislative body produces an official gazette (or
publication of notices) entitled Government Gazette. Proposed and final
technical regulations are published, but accessing the government
information over the Internet requires a subscription.

Business & Etiquettes

Malaysia has a multicultural and multiracial population consisting of

Malays, Chinese, Indians, and indigenous peoples. Although Malaysia's
ethnic mix is generally harmonious, the various communities remain
largely separate and ethnic/religious tensions exist. With such a varied
ethnic composition, there is a diversity of religions. The official religion is
Islam, but it is common to see temples, mosques, and churches within the
same area.

Business customs in Malaysia do not differ fundamentally from those of

the U.S. Compared to some other Asian countries, the traits of frankness,
openness, and punctuality are valued relatively more in business
negotiations and dealings. Ongoing personal contact is very important.
However, visitors should be aware of differing religious and cultural
traditions for each ethnic group. For example, Malay Muslims may feel
uncomfortable in business or social functions where alcohol or pork is
served, and visitors should take note that items (such as business cards)
should always be presented or received using the right hand.

Malaysia - Openness to and

Restriction on Foreign Investment
Attitude toward Foreign Direct Investment

Malaysia has one of the worlds most trade-dependent economies with

trade reaching 161 percent of annual GDP according to the World Trade
Organization. The Malaysian government values foreign investment as a
driver of continued national economic development, but is hampered by
restrictions in some sectors and an at-times burdensome regulatory
regime. However, the government continues to liberalize and in some
cases remove investment restrictions.

In 2009, Malaysia removed its former Foreign Investment Committee (FIC)

investment guidelines, enabling transactions for acquisitions of interests,
mergers, and takeovers of local companies by domestic or foreign parties
without FIC approval. While the FIC itself still exists, it now only reviews
the purchase by foreigners of commercial properties valued greater than
at RM 20 million (approximately USD 6.5 million) from
the bumiputera (ethnic Malays and other indigenous ethnicities in
Malaysia).

Since 2009, the government has gradually liberalized foreign participation

in the services sector to attract more foreign investment. Following
removal of certain restrictions on foreign participation in industries
ranging from computer-related consultancies, tourism, and freight
transportation, the government in 2011 began to allow 100 percent
foreign ownership across the following sectors: healthcare, retail,
education as well as professional, environmental, and courier services.
Some limits on foreign equity ownership remain in place across in
telecommunications, financial services, and transportation.

Foreign investments in services, whether in sectors with no foreign equity

limits or controlled sub-sectors, remain subject to review and approval by
ministries and agencies with jurisdiction over the relevant sectors. A key
function of this review and approval process is to determine whether
proposed investments meet the government's qualifications for the
various incentives in place to promote economic development goals.
Nevertheless, the Ministerial Functions Act grants relevant ministries
broad discretionary powers over the approval of specific investment
projects. Investors in industries targeted by the Malaysian government
often can negotiate favorable terms with ministries, or other bodies,
regulating the specific industry. This can include assistance in navigating
a complex web of regulations and policies, some of which can be waived
on a case-by-case basis. Foreign investors in non-targeted industries tend
to receive less government assistance in obtaining the necessary
approvals from the various regulatory bodies and therefore can face
greater bureaucratic obstacles.

Laws/Regulations on Foreign Direct Investment

The Government of Malaysia established the Malaysia Investment

Development Authority (MIDA) to attract foreign investment and to serve
as a focal point for legal and regulatory questions. Organized as part of
the Ministry of International Trade and Industry (MITI), MIDA serves as a
guide to foreign investors interested in the manufacturing sector and in
many services sectors. Regional bodies providing support to investors
include: Invest Kuala Lumpur, Invest Penang, Koridor Utara Malaysia
(Malaysia's Northern Corridor), the East Coast Economic Region
Development Council, the Iskandar Regional Development Authority
(IRDA), the Sabah Economic Development and Investment Authority
(SEDIA), and the Sarawak Economic Development Corporation.

As noted, the Ministerial Functions Act authorizes government ministries

to oversee investments under their jurisdiction. Prospective investors in
the services sector will need to follow requirements set by the relevant
Malaysian government ministry or agency over the sector in question.

Post is not aware of the Malaysian government's interference in judicial

proceedings involving foreign investors.

Business Registration
The principal law governing foreign investors in the Malaysian economy is
the Companies Act of 1965 (CA). Incorporation requirements under the
CA are relatively simple and are the same for domestic and foreign sole
proprietorships, partnerships, as well as privately held and publicly traded
corporations. In addition to registering with the Companies Commission of
Malaysia, business entities must file: 1) Memorandum and Articles of
Association (i.e., company charter); 2) a Declaration of Compliance (i.e.,
compliance with provisions of the Companies Act); and 3) a Statutory
Declaration (i.e., no bankruptcies, no convictions). The registration and
business establishment process takes less than a week to complete,
according to the World Banks 2016 Doing Business Rankings.

Beyond these requirements, foreign investors must obtain licenses. Under

the Industrial Coordination Act of 1975, an investor seeking to engage in
manufacturing will need a license if the business claims capital of RM 2.5
million (approximately USD 641,000) or employs at least 75 full-time
staff. The Malaysian government's guidelines for approving
manufacturing investments, and by extension, manufacturing licenses,
are generally based on capital-to-employee ratios. Projects below a
threshold of RM 55,000 (approximately USD 14,100) of capital per
employee are deemed labor-intensive and will generally not qualify.
Manufacturing investors seeking to expand or diversify their operations
will need to apply through MIDA.

Manufacturing investors whose companies have annual revenue below RM

50 million (approximately USD 12.8 million) or with fewer than 200 full-
time employees meet the definition of small and medium size enterprises
(SMEs) and will generally be eligible for government SME incentives.
Companies in the services or other sectors that have revenue below RM
20 million (approximately USD 5.1 million) or fewer than 75 full-time
employees will meet the SME definition.

TATA STEEL LIMITED.

Tata Steel Limited (formerly Tata Iron and Steel Company Limited (TISCO)) is
an Indian multinational steel-making company headquartered in Mumbai,
Maharashtra, India, and a subsidiary of the Tata Group. It was the 10th largest steel
producing company in the world in 2015, with an annual crude steel capacity of 25.3
million tonnes, and the second largest steel company in India (measured by
domestic production) with an annual capacity of 9.7 million tonnes after SAIL
Tata Steel has manufacturing operations in 26 countries, including Australia, China,
India, the Netherlands, Singapore, Thailand and the United Kingdom, and employs
around 80,500 people. Its largest plant is located in Jamshedpur, Jharkhand. In 2007
Tata Steel acquired the UK-based steel maker Corus. It was ranked 486th in the
2014 Fortune Global 500 ranking of the world's biggest corporations. It was the
seventh most valuable Indian brand of 2013 as per Brand Finance.

Tata Steel Limited

Type Public

Traded as NSE: TATASTEEL

BSE: 500470

BSE SENSEX Constituent

CNX Nifty Constituent

Industry Steel

Founded 25 August 1907; 109 years ago

Founder Jamshetji Tata

Headquarters Mumbai, Maharashtra, India[1]

Area served Worldwide

 Key people Natarajan Chandrasekaran

(Chairman)

T. V. Narendran

(Managing Director)

Products Steel, flat steel products, long steel

products, wire products, plates

117,151 crore (US$17 billion) (2016)[2]

Revenue

Operating 7,585 crore (US$1.1 billion) (2016)[2]

income

-3,179 crore (US$470 million) (2016)[2]

Profit

163,250 crore (US$24 billion) (2016)[2]

Total assets

Number of 80,000 (2016)[2]

employees

Parent Tata Group

Subsidiaries Tata Steel Europe

Website www.tatasteel.com

European Operations

Tata Steel Europe (erstwhile Corus) has a crude steel production capacity
of 18 mtpa. Tata Steel Europe has manufacturing operations in Western
Europe, plants in UK, Netherlands, Germany, France and Belgium, backed
by a sophisticated global network of sales offices and service centres.

South East Asian Operations

Tata Steel started its operations in SEA in 2004 with investments in
NatSteel Singapore (Tata Steel Singapore) and Millennium Steel (Tata Steel
Thailand).

With over 40 years of Steel making experience, Tata Steel Singapore is

one of the most prominent steel producers in the Asia Pacific region. It
caters to the growing construction industry through its manufacturing
presence in Singapore, Thailand, China, Malaysia, The Philippines and
Australia.

Tata Steel Thailand is the largest producer of long steel products in

Thailand.

Pestle Analysis Of The Steel Industry.

Introduction

TATA STEEL is one of the major companies in INDIA. TATA STEEL is also
known as TISCO. (Tata Iron and Steel Company). Tata steel is producing
the 31 million tons of the crude capacity every year. Tata steel is the
largest private company in India which is ranked number one in the
domestic production of the steel in the country. Tata steel is a part of the
Tata group of companies. Tata steel is also ranked number 2nd position as
for the most profit earning company in the private sector. When the
survey is conducted by the BRAND FINANCE and the ECONOMIC TIMES it is
reported to be in the 8th most valuable brand. Tata steel operates in the
various countries apart from the India. It conducts its business in Asian
countries, Europe and Australia. It is also ranked 258th number in the
FORTUNE GLOBAL 500. On 16th February, 1912 first iron steel was rolled
in the company which was the most memorable day in the history of steel
industry.

Tata produces the hot and cold rolled coils, sheets, tubes, rods, bearings,
and other equipment and services which are dealed with the steel. Tata
steel is listed on the Bombay (Mumbai) stock exchange, and national
stock exchange. The registered office of the Tata steel is located in the
Mumbai. As growing and successful company Tata steel is ambitious in
nature and want to achieve the target of the around 100 million tones by
the year 2015. To achieve this target Tata steel is planning to do some
acquisitions and green field projects with different companies. On 20th
October 2006, TATA STEEL signed the agreement with the Anglo-Dutch
CORUS COMPANY along with the 100% stake for 455pence per share. The
whole deal done as a cash deal. This was the only offer price introduced to
the CORUS COMPANY. The Brazilian company COMPANHIA SIDERURGICAL
NACIONAL also launched the counter offer for the acquisition to CORUS. But
finally on 31st Jan 2007, the bid was won by the TATA STEEL with the value Of
CORUS in 6.7 million euros. With this acquisition TATA STEEL becomes the 7th
largest steel company in the world.

POLITICAL FACTOR OF THE TATA STEEL:

INVESTMENT IN THE UNSTABLE POLITICAL
COUNTRIES:
Though the Tata steel made the various acquisitions for the growth of the
company and for the reason of the expansion of the business they took a
very high amount of risk by investing in the countries like Bangladesh,
Iran, and And Thailand. For example: the plan set up in the Bangladesh is
getting delayed by the question of gas supply, whereas the issue of lease
of the mining of the iron ore in the Iran country is responsible for the
increase in the cost of the production.

INFRASTRUCTURAL DEVELOPMENT IN THE

INDIA:
Now a day's government is launching the various schemes for the
development of the infrastructure of roads and transport. Every year Tata
steel and other steel industries in India spends a huge amount on the
freight and transportation with the launch of various schemes in
infrastructure company could be able to save some amount which
company spends on the freight and transportation.
EFFECTS OF THE LIBERLIZATION:
The various liberalization schemes launched by the government after the
year 1991.when the Indian economy opened globally, is responsible for
the tremendous growth in the various sectors but the particularly in this
sector. Various features can be discussed as follows:

The licensing is required for the capacity creation which is removed

Foreign equity investment got the permission up to 74%.

Reduction in import and tariff reduced from the 105%im year 1992-1993to
30% in the year 1996-1997.

Apart from this restrictions on the import and export have been reduced

These are the some important features of the liberalization policy which
leads to Tata steel to be on the growth path.

Apart from this the mining policies of the government and other policies
helped the Tata steel in reduction of import a duty and export duty and
other things which are responsible for the high growth of the Tata steel
industry globally.

ECONOMIC FACTOR OF TATA STEEL:

Two years back the United States economy faces the SUBPRIME CRISIS
which affected the each and every strong economy in a very negative
way. During this period there was a very high risk in the international
capital markets regarding the liquidity. In the year 2007, many foreign
investments and equities got dampened because of the reduction in the
confidence in the liquidity and the returns on the investment. Due to the
subprime crisis in us European markets faced the problems of the
recession this creates the bad impact on the Tata steel as the Netherlands,
United Kingdom and Germany are the main markets for the CORUS
COMPANY.

Steel industry may got affected because of the cyclical economic

condition because many industries like automobiles, appliances and
construction are depends on the steel industry and if industries faces any
kind of downturn in the economy Tata steel also may also face the
losses .steel production process are completely dependent on the energy
market which can affect the Tata steel in the economic manner. With the
acquisition of CORUS company gained the growth prospective in nature
but, the cost of acquisition goes beyond the financial expectations.
SOCIO-CULTURE FACTOR OF TATA STEEL
TATA STEEL got awarded for the commitments in the business ethical
behavior and improving the lives of the employees and their families. For
this purpose Tata steel got awarded by the GOLDEN PEACOCK GLOBAL
AWARD. TATA STEEL also focused to create the social environment. They
constantly made the improvements in the health issues, economic
wellbeing and education facilities provided to the nation. This policy works
out in near 800 villages in Jharkhand .Orissa and Chhattisgarh. Hospital on
wheels is the basic innovation of the Tata's whereas Tata is also
responsible for the habitation in slum areas in urban developing cities.

TECHNOLOGICAL FACTOR OF THE TATA

STEEL:
Technological aspect should be always in the nature of changing as per
the new circumstances. Tata steel and the sail(steel authority of India )
started the E-PORTAL system in middle of year 2000.thistechnology is also
known as the METAL JUNCTION which is helpful for not only to Tata steel
but also to entire industry. With the help of this technology e market is the
biggest market for the purchasing and selling of the steel in the world. To
reduce the emersions of the co2nin the environment the Tata steel is on
with the research of the ultra-low carbon steel .Tata is also engaged with
the objective of the energy conservation schemes where Tata is doing
research to reduce the energy consumption in the production process.

ENVIRONMENTAL FACTOR FOR THE

TATA STEEL:
In the steel industry there is a major problem of the emersion of the co2
gas during the production process which is extremely harmful for the
nature and human being itself. Tata steel is designing a programme in
which Tata steel would be able to reduce the co2 emersion by 20 %.

The DHAMRA port is the joint venture of the LASRSEN AND TOURBO and
TATA STEEL. This joint venture came into existence for the protection of
the Olive Ridley sea Turtles. These project is established near the
Orissa .DHAMRA port is also supporting for the saving in the saltwater
crocodiles as well as it is contributing the help to save the wildlife in
india.it is also providing the breeding grounds for the horse shoe crabs
and other rare species of the reptiles and amphibians.
LEGAL FACTOR OF THE TATA STEEL:
The main importance is given to the employee's safety at the work place
Tata steel ensures the EHS (ENVIRONMENTAL HEALTH AND SAFETY) under
which the each and every employee's activity is managed by the EHS
framework. Along with this positive aspect the company is also facing
some legal problems. Though he Tata steel is not concern with the
problem of land acquisitions in singur west Bengal it is affecting the name
of Tata.

Unstable government in Jharkhand and various tribal protestors are

creating some legal issues for the Tata steel. It should be noted that from
past 100 years the company work is not disturbed because of any kind of
the strikes and internal issues. The introduction of provident fund is
introduced by the Tata steel in the year1920.1920 Tata introduced the
leave pay scheme to the employees which was actually applied later on in
the year 1945 after the independence. Soon these schemes introduced
become the legal part of the INDIAN LAW.