Man of steel bids farewell to India's Tisco

J.J. Irani, the driving force behind Indian steel giant Tata Iron and Steel Co Ltd (Tisco), celebrated his birthday a day early on Friday when the 94-year-old company reported a big surge in annual profit.

Tisco's announcement that year net profit jumped 31 per cent to hit Rs5.53 billion ($117.6 million), beating market expectations, was a crowning moment for Irani, who transformed an unfocused company into a lean, market-driven firm that is now one of world's lowest-cost steel producers.

Irani who turns 65 on June 2 and retires as managing director next month after nine years, says he is leaving Tisco — India's largest listed steel firm by market value — fighting trim.

Tisco, based in the eastern city of Jamshedpur, is flagship of the Tata group, India's biggest business conglomerate. "We're cash-rich now, whereas five to seven years ago we were struggling," said Irani, who as a young cricket player opened the bowling for the Yorkshire league. "I'm satisfied after having had quite a long innings," he said.

Jamshed Jiji Irani, named steel man of the year in 1990, launched Tisco's seven-year, Rs70 billion drive in 1994. "Now we may be an old company but we have a steel plant that is the most modern and sophisticated in the world," said Irani, described by colleagues as always jovial.

"We're no longer a commodity player but have branded our products and aimed for the high value-added market," he said in an interview. "The latest cold-rolled mill complex is the big step in that direction."

Irani coupled his modernisation push with a drive to drastically cut Tisco's headcount through what he said was a "generous compensation package". In 1994, Tisco had 78,000 workers. Now it has just 48,000 and aims to hit 45,000 by next March.

These steps have slashed the company's cost of steel production to $150 per tonne from $225, to make Tisco one of the world's most cost-efficient steel producers. "Cutting costs is a continuous process. One day I hope Tisco will be producing at $120 to $125 per tonne, not next year but over the next few years," he said in his distinctive bass tones.

A Tata lifer, Irani sailed for Britain at 21 on a scholarship from the house of Tata to study at Sheffield University where he earned a doctorate in metallurgy. Following a five-year stint with British Steel, he returned in 1968 after the late Tata chairman, J.R.D. Tata, wrote to him saying there was a job waiting for him at Tisco.

Irani spent the next 33 years working his way up to Tisco's corner office, collecting a knighthood along the way. In overhauling Tisco, Irani also paid attention to the environment. Jamshedpur, whose main employer is Tisco, is the only Indian city which treats 100 per cent of its sewage. Tisco employees also planted 1.5 million trees in Jamshedpur in the late 1990s, making it one of India's greenest cities, Irani said with clear pride.

Now he plans to take life easier, although he will stay on Tisco's board and on the board of the group's holding company. "I'll spend more time with my family and three children, who incidentally are resolved not to follow my steelmaking footsteps, seeing my working hours," Irani said.

Irani also said he plans to spend time on his stamp collection, which he started at the age of eight. "There are thousands and thousands of stamps lying around which are not catalogued," said Irani, who has a penchant for British and Indian stamps.

And the 'gentleman's game' continues to be a passion, although the portly Irani says he "nowadays can hardly run up to the wicket" and is content to watch the game from the pavilion.