Three years, a dream & a partner!

IIPM, ADMISSIONS FOR NEW DELHI & GURGAON BRANCHES

Going by the contemporary, it looks like Posco’s wait was worth it...

The next time you want to learn about a foreigner who loved India since his first visit, look at Posco without wasting a glance... for the world’s fourth largest steel producer, is still around – three long & arduous years after its first visit in August 2004! And for a reason of course!

And after its much touted issues in Orissa during early 2007, there finally seems to be good news surfacing for the steel giant. We’re referring to its strategic tie-up with India’s largest steel maker, Steel Authority of India Ltd. (SAIL) announced on August 16, 2007. So the question – will the wait actually pay off ?

Soung Sik Cho, Senior VP & member of Posco board sounded positive as he elaborated on the logic behind the deal as, “We have signed an MoU with SAIL to synergise the strengths of both the companies together in the area of strategic planning, raw material purchase, exchange of technical know-how and business innovation & joint usage of each other’s existing marketing & warehousing network.” And though the Korean also has of late been forced to cut down its manpower & postpone its project start-date to December 2007, its $12 billion dream steel project in India may yet be realized three long years later!

However, the arrangement appears to be a win-win situation for both, as even SAIL would piggy-back on Posco’s supreme technical know-how in steel production and extensive global network as Hitesh Agrawal, VP-Research, Angel Broking agreed, “The joint usage of each other’s expertise and resources is definitely going to act as a major booster for both the companies in midst of global consolidation in the steel industry.”

So while its India entry strategy serves dual purposes of being a countermove to the growing influence of Arcelor- Mittal and a means to boost its dropping steel production (which fell by 1.61% to 30.05 million tonnes in 2006), one aspect is for sure – Arcelor- Mittal will surely not have it easy in India atleast!

Edit bureau : Manish Pandey

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

For More IIPM Info, Visit Below....
IIPM International Student Exchange Programme
IIPM, GURGAON
ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...
IIPM Economy Review
IIPM :- Cicero's Challenge is going global
The Indian Institute of Planning and Management (I...
After CDMA, will nokia miss the 3G bus ?
Time for Awards at IIPM
STUDENTS AGAINST CORRUPTION & KICKBACKS : SACK
Heavy dut(t)y stress Sanjay Dutt Bollywood Actor
The Business of B-School Rankings & The Big Farce
36TH Full Time Programme In Planning & Entrepreneu...

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)