Abstract

The case discusses the implementation of economic value added (EVA) framework in Tata Iron & Steel Company Limited (TISCO), the largest private sector steel company in India. It covers in detail the reasons for implementing the EVA framework in TISCO and the benefits derived from it. The case then describes the limitations of EVA implementation in a cyclical industry. It examines the possible options under consideration by TISCO to ensure that the company posts a positive EVA figure in future

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Implementation of EVA.

Keywords

TISCO, Economic Value Added, EVA, Deployment of EVA Framework, Maximizing Shareholder's Wealth, EVA in Cyclical Industry, Calculation of EVA, Steel Industry in India