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tata steel

  1. 1. Adaikalamatha institute of Management WELCOME PRESENTED BY E.T.Srikrishnadevarayalu 03
  2. 2. TATA STEEL Fifth Largest Steel Producer In The World
  3. 3. HISTORY <ul><li>Tata Steel was established by Indian Parsi businessman Jamshetji Nusserwanji Tata in 1907 (he died in 1904, before the project was completed). Tata Steel introduced an 8-hour work day as early as in 1912 when only a 12-hour work day was the legal requirement in Britain . It introduced leave-with-pay in 1920, a practice that became legally binding upon employers in India only in 1945. Similarly, Tata Steel started a Provident Fund for its employees as early as in 1920, which became a law for all employers under the Provident Fund Act only in 1952. Tata Steel's furnaces have never been disrupted on account of a labour strike and this is an enviable record </li></ul>
  4. 4. PRODUCTION <ul><li>Tata Steel annually produces 18 million tonnes of steel in India and 52.32 million tonnes overseas, making it the fifth largest steel producer in the world. It produced a record-breaking 10.32 million tonnes of salable steel in its Jamshedpur works in 2009-10. The company's gross revenue in that financial reporting year was Rs. 20196.24 crores . Its PBT was Rs.621261.65 crores and PAT was Rs.422212.15 crores in the same year </li></ul>
  5. 5. CAPACITY EXPANSION <ul><li>Tata Steel has set an ambitious target to achieve a capacity of 100 million tonne by 2015. Managing Director Balasubramanian Muthuraman (shortened simply to &quot;B Muthuraman&quot;) stated that of the 100 million tonne, Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions. </li></ul>
  6. 6. <ul><li>Overseas acquisitions have already added up to 21.4 million tonne, which includes Corus production at 18.2 million tonne, Natsteel production at two million tonne and Millennium Steel production at 1.2 million tonne. Tata is looking to add another 29 million tonnes through the acquisition route. </li></ul>
  7. 7. <ul><li>Tata Steel has lined up a series of greenfield projects in India and outside which includes </li></ul>
  8. 8. <ul><li>6 million tonne plant in Orissa (India) </li></ul><ul><li>12 million tonne in Jharkhand (India) </li></ul><ul><li>5 million tonne in Chhattisgarh (India) </li></ul><ul><li>3-million tonne plant in Iran </li></ul><ul><li>2.4-million tonne plant in Bangladesh </li></ul><ul><li>5 million tonne capacity expansion at Jamshedpur (India) </li></ul><ul><li>4.5 million tonne plant in Vietnam (feasibility studies underway) </li></ul>
  9. 9. CORPORATE SUSTAINABILITY <ul><li>Regarded globally as a benchmark in corporate social responsibility, Tata Steel's commitment to the community remains the bedrock of its hundred years of sustainability. Its mammoth social outreach programmed covers the company-managed city of Jamshedpur and over 800 villages in and around its manufacturing and raw materials operations through uplift initiatives in the areas of income generation, health and medical care, education, sports, and relief </li></ul>
  10. 10. <ul><li>The Company, fully conscious of its responsibilities to the future generations, has always taken pro-active measures to ensure optimum utilization of natural resources. This is reflected in the ISO-14001 certification that all its operations have achieved for environment management. The SA 8000 certification for work conditions and improvements in the workplace at the steel works in Jamshedpur, along with its Ferro Alloys and Minerals Division, is a reiteration of its commitment towards the Company's employees. Tata Steel has pioneered numerous employee welfare measures such as the 8 hours working day and the three tier joint consultation system of management which have been the platform for nearly 80 years of industrial harmony in its Steel Works in Jamshedpur. </li></ul>
  11. 11. <ul><li>Tata Steel has set an ambitious target to achieve a capacity of 100 million tonne by 2015. Managing Director Balasubramanian Muthuraman (shortened simply to &quot;B Muthuraman&quot;) stated that of the 100 million tonne, Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions. </li></ul>
  12. 12. Awards and Recognitions <ul><li>Tata Steel India awarded the Deming Application Prize 2008 for excellence in Total Quality Management. It is the first integrated steel company in the world, outside Japan to get this award. </li></ul><ul><li>World Steel Dynamics has ranked Tata Steel as the world's best steel maker (for two consecutive years) in its annual listing in February 2006. </li></ul><ul><li>Tata Steel has been conferred the Prime Minister of India's Trophy for the Best Integrated Steel Plant five times. </li></ul>
  13. 13. <ul><li>It has been awarded Asia's Most Admired Knowledge Enterprise award five times in 2003, 2004, 2006, 2007 and 2008. </li></ul><ul><li>Conferred the prestigious Global Business Coalition Award for Business Excellence in the Community in recognition of its pioneering work in the field of HIV/ AIDS awareness. </li></ul><ul><li>Tata Steel works has been conferred the prestigious social accountability (SA) 8000 certification by social. Accountability international (SAI), USA. It is the first steel company in the world to receive this certificate. </li></ul>
  14. 14. <ul><li>Corporate Sustainability Report of Tata Steel hailed by United Nation's Environment Programme (UNEP) and Standard and poor as strongest, submitted by any corporate house from emerging economies. </li></ul><ul><li>Best governed company Award 2006 for setting high standards in governance practices. </li></ul>
  15. 15. VISION <ul><li>We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship . </li></ul>
  16. 16. We make the difference through <ul><li>: </li></ul><ul><li>Our people , by fostering team work, nurturing talent, enhancing leadership capability and acting with pace, pride and passion. </li></ul><ul><li>Our offer , by becoming the supplier of choice, delivering premium products and services, and creating value with our customers. </li></ul><ul><li>Our innovative approach , by developing leading edge solutions in technology, processes and products. </li></ul><ul><li>Our conduct , by providing a safe working place, respecting the environment, caring for our communities and demonstrating high ethical standards </li></ul>
  17. 17. Locations
  18. 18. Location <ul><li>Jamshedpur Works (Expansion) </li></ul><ul><li>Seraikela (Greenfield)   </li></ul>
  19. 19. Capacity <ul><li>Capacity enhancement from 5 mtpa to 10 mtpa </li></ul><ul><li>12 mtpa integrated steel plant </li></ul>
  20. 20. Project Highlights <ul><li>• Setting up a 12 million tonnes per annum Greenfield integrated steel plant in the state. </li></ul><ul><li>• Expansion of Tata Steel's existing plant at Jamshedpur from 5 mtpa to 10 mtpa. </li></ul><ul><li>• Co-operation in the area of Human Resource Development through Polytechnic. </li></ul><ul><li>• Co-operation in the area of Human Resource Development through Industrial Training Institutes.   </li></ul>
  21. 21. Updates <ul><li>• Tata Steel is awaiting the R&R Policy from the State Government for its Greenfield project. </li></ul><ul><li>• The first phase of expansion where the capacity will become 7 mtpa is expected to be achieved by June 2008. Thereafter the capacity will become 10 mtpa by December 2010. </li></ul>
  22. 23. Capacity <ul><li>Jagdalpur in Bastar district of Chattisgarh </li></ul>
  23. 24. Capacity <ul><li>5 mtpa Greenfield integrated steel plant </li></ul>
  24. 25. Project Highlights <ul><li>MoU with the Chhattisgarh government was signed on June 04, 2005. </li></ul><ul><li>The integrated steel plant will have an ultimate capacity of 5 mtpa of steel with 2 mtpa in first phase. </li></ul><ul><li>The project also includes development of captive iron ore mines to meet the iron ore requirements of this plant.   </li></ul>
  25. 27. Location <ul><li>Kalinganagar Industrial Complex at Duburi in Jajpur district of Orissa </li></ul>
  26. 28. Capacity <ul><li>6 mtpa integrated steel plant </li></ul>
  27. 29. Project Highlights <ul><li>MoU signed on November 17, 2004 with the Orissa Government. </li></ul><ul><li>The project will be completed in two modules of 3 mtpa, with the first module will be commissioned in 2008. </li></ul><ul><li>A core team has already started working at Jamshedpur, Bhubaneswar and Duburi for implementation of the project. </li></ul><ul><li>Govt of Orissa has allotted around 2000 acres of land to the Steel Company for the project in Kalinganagar, which has been registered in favour of Tata Steel. </li></ul><ul><li>Nippon Steel Corporation, Japan has been appointed as the Technical Consultant for the project. </li></ul>
  28. 30. Location <ul><li>Tuticorin district of Tamil Nadu </li></ul>
  29. 31. Capacity <ul><li>60,000 tonnes per annum of titanium dioxide </li></ul>
  30. 32. Project Highlights <ul><li>Tuticorin district of Tamil Nadu </li></ul><ul><li>MoU with the Government of Tamil Nadu signed on June 27, 2002. </li></ul><ul><li>Titania Project involves mining, mineral separation and value addition i.e. pigments production in phases subject to techno economic viability. </li></ul><ul><li>Prospecting license over 80 sq.km area granted by the Government of Tamil Nadu in the districts of Tirunelveli and Tuticorin with due approval from Government of India. </li></ul><ul><li>  </li></ul>
  31. 33. <ul><li>The feasibility study conducted with the help of a Consortium Partners comprising of Outokumpu Finland's physical separation division based in USA, Outokumpu-Lurgi,Germany, Pincock Allen and Holt, USA, a resource and mining consulting company and L&T </li></ul><ul><li>.Environmental Impact Assessment of the project carried out and Environmental Management Plan drawn with the assistance of MIN-MEC Consultancy. </li></ul>
  32. 34. Strategic Business Units <ul><li>Apart from the main Steel Division, Tata Steel's operations are grouped under the following Strategic Business Units: </li></ul>
  33. 35. <ul><li>Bearings Division :Manufactures ball bearings, double row self-aligning bearings, magneto bearings, clutch release bearings and tapered roller bearings for two wheelers, fans, water pumps, etc. </li></ul>
  34. 36. <ul><li>Ferro Alloys and Minerals Division : Operates chrome mines and has units for making ferro chrome and ferro manganese. It is one of the largest players in the global ferro chrome market. </li></ul><ul><li>Agrico Division : Tata Agrico is the first organised manufacturer in India of hand tools and implements for application in agriculture. </li></ul>
  35. 37. <ul><li>Tata Growth Shop (TGS) : Has designed, developed, manufactured, erected and commissioned thousands of tonnes of equipment ranging from overhead cranes to high precision components, including a rocket launch pad for the Indian Space and Research Organisation. </li></ul><ul><li>Tubes Division : The biggest steel tube manufacturer with the largest market share in India, it aspires to strengthen its market presence by expanding and modernising its commercial and precision tube manufacturing capacity. </li></ul>
  36. 38. <ul><li>Wire Division : A pioneer in the manufacture of steel wires in India, it produces coated and uncoated wires, branded as Tata Wiron. The division also operates a wholly owned subsidiary in Sri Lanka. </li></ul>
  37. 39. <ul><li>Bombay House, 24, Homi Mody Street, Fort, Mumbai 400 001. Tel : (022) 6665 8282. Fax : (022) 6665 7724 / 6665 7725 E-mail : [email_address] </li></ul>Registered Office
  38. 40. <ul><li>Lead Bankers State Bank of India </li></ul><ul><li>Legal Advisors AZB & Partners Amarchand & Mangaldas & Suresh. A. Shroff & Co. Herbert Smith LLP Mulla & Mulla and Craigie Blunt & Carve </li></ul>
  39. 41. <ul><li>Type Public ( BSE : 500470 ) </li></ul><ul><li>Founded 1907 </li></ul><ul><li>Headquarters Jamshedpur , Jharkhand , India </li></ul><ul><li>Key people Ratan Tata (Chair) (BalasubramanianMuthuraman)(CEO) </li></ul><ul><li>Industry Steel Products Hot and cold rolled coils and sheets Wire and rods Construction bars Pipes Structurals and forging quality steel </li></ul><ul><li>Revenue ` US$ 32.77 billion (2009) [1] </li></ul><ul><li>Employees 86,548 (2009) [2] </li></ul><ul><li>Website http:// www.tatasteel.com / </li></ul>
  40. 42. Future Plans <ul><li>India : The Company has embarked upon setting up three green field steel plants in eastern India: </li></ul><ul><li>12 MTPA* plant in Jharkhand </li></ul><ul><li>6 MTPA plant in Orissa </li></ul><ul><li>5 MTPA plant in Chhattisgarh </li></ul><ul><li>Jamshedpur Steel Works will become a 10 MTPA unit by 2010. *MTPA = million tones per annum </li></ul>
  41. 43. Tata Steel Group reports consolidated results for the quarter ended June 30, 2009 <ul><li>Highlights for the quarter </li></ul><ul><li>Sales volume of Indian operations was higher by 22% during Q1 FY’10 over Q1FY’09. </li></ul><ul><li>Total steel deliveries for the Group for the quarter dropped 37% to 5.443 million tonnes </li></ul><ul><li>from 8.603 million tonnes in Q1 FY’09 mainly due to fall in volume in Tata Steel Europe </li></ul><ul><li>(TSE) affected by the demand contraction especially in Europe on account of the global </li></ul><ul><li>economic downturn. </li></ul>
  42. 44. <ul><li>Group consolidated turnover was Rs.23,292 crores (US$ 4,863 million) as compared to </li></ul><ul><li>Rs. 43,496 crores (US$ 9,081mn) registered during the first quarter of 2008-09 (Q1 </li></ul><ul><li>FY’09) caused primarily by the drop in sales volume in TSE as well as drop in prices in </li></ul><ul><li>India and South-East Asia. </li></ul>
  43. 45. <ul><li>The cost savings benefits achieved in the first quarter from the ‘Weathering the Storm’and ‘Fit for the Future’ programs was around Rs. 2,200 crores (US$ 460 mn). </li></ul><ul><li>• EBITDA during Q1 FY’10 was Rs. 204 crores (US$ 43 million) against Rs. 7,375 crores </li></ul><ul><li>(US$ 1,540 mn) in Q1 FY’09. </li></ul><ul><li>The drop in EBITDA was attributable mainly to thechallenging economic environment caused by the global recession especially in UK &Europe. </li></ul>
  44. 46. THAN'Q'