Tata Steel to set up subsidiary for cost reduction

Tata Steel to set up subsidiary for cost reduction

Tata Steel, India's largest integrated steel producer in the private sector, is about to established a fully owned subsidiary company under the name of Jamshedpur Utility and Services Company Ltd (Jusco). Jusco will serve for the purpose of taking up activities which are not within the core business activities of the parent company and will serve other Tata group companies, gradually spreading its wings outside Jamshedpur. Tata Steel aims to reduce its wage bill currently accounting for around 18% of its total turnover. This will be realised by transferring certain employees of Tata Steel to this new company. Similarly, in countries like Japan and Korea, support services are supplied by such subsidiary companies of the core company.