PROJECT   C O L O U R Adding colours to steel…!!!
This is Tata… <ul><li>J N Tata established Tata Group in the mid of 19 th  century </li></ul><ul><li>Since then Tata group...
Tata Corus <ul><li>Tata Steel Established in 1907 </li></ul><ul><li>Corus was formed from the merger of British Steel plc ...
Consolidate or Perish… <ul><li>The suppliers to and buyers from steel makers are well consolidated  </li></ul><ul><li>The ...
<ul><li>Corus makes nearly four times more steel than tata steel. This deal will increase Tata steel capacity exponentiall...
<ul><li>The product mix of corus </li></ul><ul><li>Gives it a wider customer base and enhanced product portfolio </li></ul...
<ul><li>Access to EU & Corus’s worldwide Distribution Network. </li></ul><ul><li>A dominant position in Value Added Produc...
Build or Acquire…?? 40000 24000 6 Average Cost in India 30000 54000 18 Corus 35000 42000 12 Tata Steel Proposed Jharkhand ...
New Investments of TATA Steel <ul><li>National </li></ul><ul><li>Jharkhand Chattisgarh Orissa - Kalinganagar Orissa - Dham...
Potential Risk… <ul><li>While Corus’s Dutch units are performing well, its UK based plants are Strugling. </li></ul><ul><l...
 
EUROPE  (Excl. UK & Netherlands) Manufacturing locations: 19 Distribution Centers: 13 USA Manufacturing locations: 3 Distr...
Institutional Alliance of Corus.. UK Steel Enterprise International Aluminium Institute International Iron & Steel Institu...
“ Will Tata Motors Try And Takeover GM?” “ Why Not, Who Knows…!!!”
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  1. 1. PROJECT C O L O U R Adding colours to steel…!!!
  2. 2. This is Tata… <ul><li>J N Tata established Tata Group in the mid of 19 th century </li></ul><ul><li>Since then Tata group has grown phenominally. with Rs.1.5 cr turnover p.a. has become India’s No.1 group overtaking Reliance Industries Ltd with Rs.89000 cr turnover p.a. </li></ul><ul><li>The Group has seven business sectors Engineering | Materials | Energy | Chemicals | Services | Consumer products | Information systems, communications </li></ul>
  3. 3. Tata Corus <ul><li>Tata Steel Established in 1907 </li></ul><ul><li>Corus was formed from the merger of British Steel plc (1967,UK) and Koninklijke Hoogovens (1918,Netherlands) on the 6th October 1999 </li></ul><ul><li>Tata steel Acquired Corus for 608 pence per share amounting to $12.1 billion </li></ul>
  4. 4. Consolidate or Perish… <ul><li>The suppliers to and buyers from steel makers are well consolidated </li></ul><ul><li>The de-integrated method of Steel-Making </li></ul><ul><li>Cost reduction drive by Anglo-Dutch firm. </li></ul><ul><li>“ One had cheap iron ore and a low cost manufacturing base, the other the technology.” </li></ul><ul><li>Corus wanted higher margins, Tata wanted lucrative markets. </li></ul>
  5. 5. <ul><li>Corus makes nearly four times more steel than tata steel. This deal will increase Tata steel capacity exponentially </li></ul><ul><li>Long term synergies </li></ul><ul><li>Leverage R&D for Tata Steel greenfield projects in orissa, chhattisgarh, jharkand </li></ul><ul><li>Cost savings of $350 million a year in 3 years time. </li></ul>
  6. 6. <ul><li>The product mix of corus </li></ul><ul><li>Gives it a wider customer base and enhanced product portfolio </li></ul><ul><li>Significant cost savings by exporting cheaper inputs (slabs & billets) inputs from india that will be processed in corus </li></ul><ul><li>The combine entity becomes the 5 th largest producer in the world and the 2 nd in Europe </li></ul>
  7. 7. <ul><li>Access to EU & Corus’s worldwide Distribution Network. </li></ul><ul><li>A dominant position in Value Added Products. </li></ul><ul><li>COMPETENCY SHARING. </li></ul>
  8. 8. Build or Acquire…?? 40000 24000 6 Average Cost in India 30000 54000 18 Corus 35000 42000 12 Tata Steel Proposed Jharkhand Project 30800 15400 5 Tata Steel Proposed Orissa Project Cost/Tonne Cost (Rs crore) Million tonnes  
  9. 9. New Investments of TATA Steel <ul><li>National </li></ul><ul><li>Jharkhand Chattisgarh Orissa - Kalinganagar Orissa - Dhamra Port Tamil Nadu </li></ul><ul><li>International </li></ul><ul><li>NatSteel- Asia </li></ul><ul><li>Millennium Steel - Thailand Australia South Africa Bangladesh </li></ul><ul><li>Iran </li></ul>
  10. 10. Potential Risk… <ul><li>While Corus’s Dutch units are performing well, its UK based plants are Strugling. </li></ul><ul><li>Pension liabilities of Corus($24 billion) will be a drag on future profitability. </li></ul><ul><li>Doubts about Tata Steel being able to service its debts if steel prices dip. </li></ul>
  11. 12. EUROPE (Excl. UK & Netherlands) Manufacturing locations: 19 Distribution Centers: 13 USA Manufacturing locations: 3 Distribution Centers: 2 UK & IRELAND Manufacturing locations: 3 Distribution Centers: 2 INDIA Production facility: 1 Crude Steel Capacity: 5mtpa Distribution centers: 22 NatSteel ASIA Production facility: Across Countries Production capacity: 1.7mtpa TATA STEEL THAILAND Production facility: 3 Production Capacity: 1.7mtpa Distribution centers: 3 Jamshedpur Orrisa Touching Every Corner of Globe…!!!
  12. 13. Institutional Alliance of Corus.. UK Steel Enterprise International Aluminium Institute International Iron & Steel Institute European Confederation of Iron and Steel Industries
  13. 14. “ Will Tata Motors Try And Takeover GM?” “ Why Not, Who Knows…!!!”
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