- India is the world's 3rd largest producer of crude steel and is expected to become 2nd largest soon. - India's crude steel production grew 4.9% year-on-year to 8 million tons in May 2016, and total steel production is expected to increase 7% in 2016. - Tata Steel is an Indian multinational steel company headquartered in Mumbai and is a subsidiary of the Tata Group. It was formerly known as Tata Iron and Steel Company.

1. • India is the world’s third-largest
producer of crude steel (up from
eighth in 2003) and is expected to
become the second-largest producer
very soon
• India’s crude steel production grew by
4.9 per cent year-on-year to at 8
Million Tones (MT) in May 2016. !
Total steel production in the country
is expected to increase by 7 per cent
in 2016.
Tata Steel Limited (formerly Tata Iron and
Steel Company Limited (TISCO) is an
Indian Multinational steel-making
company headquartered
in MUMBAI,MAHARASHTRA , India, and a
subsidiary of the TATA GROUP
STEEL INDUSTRYTATA STEEL
ADITYA
ACHYUT
ANWESH
ACHYUTANANDA
AJIT
ANUSHA
ADVENT
ANAND
AKASH
ABHISHEK

2. Growth RateKEY PLAYERS
Growth rates refer to the
percentage change of a specific
variable within a specific time
period, given a certain context.

3. TURNOVER
Total Assets is the sum of all assets, current and fixed. The asset turnover ratio measures the ability of a
company to use its assets to efficiently generate sales. The higher the ratio indicates that the company is
utilizing all its assets efficiently to generate sales. Companies with low profit margins tend to have high
asset turnover.
EBITA
EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation,
and Amortization.
It gives an indication of the current operational profitability of the business
and allows a comparison of profitability between different companies after
removing out expenses that can obscure how the company is really
performing.
ROI

4. PRODUCTS
Tata Steel’s branded products and solutions touch 2.5 million consumers
and 5,000 customers every year. By actively responding to changing
customer demands and expectations, the Company has expanded its
distribution network, strengthened existing brands and won several
brand awards.
HR CONTACTS

5. • India is the 1st largest producer of sponge iron and
3rd largest producer of crude steel.
35
50
• Per capita steel consumption also
improved from 35 kgs in 2005 to 59 kgs in
2014.
• Indian steel demand is expected to reflect improving
macro-economic environment.

6. Financial Year 2014-15 has been a year of achievements despite
the severe impact of externalities.
The Company was severely impacted in 2014-15 by the raw
material (RM) crisis.
FY 15 FY 14 Change %
Hot Metal 10.16 9.90 2.6
Crude Steel 9.33 9.16 1.9
Saleable Steel 9.07 8.93 1.6
Sales 8.75 8.52 2.7
(in million tons)

7. Understanding The Presence Of Different Elasticity
Price Elasticity: A measure of the effect of a price change or a change in the quantity supplied
on the demand for a product or service.
Income Elasticity: In economics, income elasticity of demand measures
the responsiveness of the quantity demanded for a good or service
to a change in the income of the people demanding the good
ceteris paribus.
Cross Elasticity: In economics, the cross elasticity of demand or
cross-price elasticity of demand measures the responsiveness
of the quantity demanded for a good to a change in the price
of another good, ceteris paribus.

8. Presence Of Different Elasticity Of TATA STEEL
Price Elasticity

9. FY14 FY15 FY160
8,400
16,800
25,200
33,600
42,000
Income Elasticity: Year2Year

10. Cross Elasticity
• Substitute Effect:-
• A good’s demand is increased when the price of another good is increased
• Steel & Aluminum, Margarine & Butter
• More the availability of substitute, more is the cross elasticity of demand
• Complementary Effect:-
• The demand for a good is decreased when the price of another good is increased
• Computer hardware and computer software, Printer & Cartridge
• Demand is more closely related

11. Marginal Concept
Marginal Cost:-
In economics, marginal cost is the
change in the total cost that arises when
the quantity produced is incremented by
one unit. That is, it is the cost of producing
one more unit of a good is. In general terms,
marginal cost at each level of production
includes any additional costs required to
produce the next unit.
TATA STEEL INDIA MARGINAL CONCEPT

12. Market Share Analysis 2014-2015
Others
PERCENTAGES OF INDIAN STEEL INDUSTRY

13. PRODUCTION FORECASTING OF TATA STEEL IN
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
2,982,772 3,123,528 3,233,561 3,072,651
760,735 911,574 831,744 698,864
799,553 877,711 839,742 830,120
13,349,349
15,453,619 15,721,180
16,879,891
Others JSW steel
2016-2017 2017-2018 2018-2019 2019-2020
BAJAJ STEEL TATA Steel

14. Production Analysis of Tata steel
a) Steel Division
www.tatasteel.com/investors/annual-report-2014-15/annual-report-2014-15.pdf

15. b) Ferro Alloys and Minerals Division c) Tubes Division
d) Bearings Division

16. Cost analysis of Tata steel
A-Purchase of finished, semi-finished and other products
B-Raw materials consumed
C-Employee benefits expense
D-Purchase of power
Source-Management Discussion and Analysis 2014-15
E-Freight and handling charges
F- Other expenditure
G-Finance costs and Net finance cost

17. H-Exceptional items
I- Stores and spares stock
J- Stock-in-trade
Source-Management Discussion and Analysis 2014-15

18. Tata Steel productivity
http://www.tatasteel.com/investors/pdf/Q4-results-presentation_FY15.pdf
http://www.business-standard.com/article/reuters/tata-steel-aims-to-double-indian-workforce-s-productivity-source-116072001184_1.html

19. capacity utilization
http://www.tatasteel.com/investors/pdf/Q4-results-presentation_FY15.pdf

20. http://www.tatasteel.com/investors/pdf/Q4-results-presentation_FY15.pdf

21. STRUCTURE OF INDIAN STEEL INDUSTRY
• India is the world’s third-largest producer of steel
(up from eighth in 2003) and is expected to become
the second-largest producer by 2016
• The industry produced 91.46 million tons of total
finished steel and 9.7 million tons of pig iron in
FY2015
• Total finished steel production in India has increased at
a CAGR of 7.45 per cent over FY11–15
• The steel sector contribute 2% to the GDP of the nation
and provides 6 lakh jobs in the country
• Oligopoly in the Steel Industry

23. PRICING POLICY AND PRACTICES
OF STEEL INDUSTRY
• PRICE REGULATION OF IRON AND STEEL WAS ABOLISHED ON 16 JANUARY
1992.
• STEEL PRICES ARE INFLUENCED BY TRENDS IN RAW MATERIAL PRICES, DEMAND
– SUPPLY CONDITIONS IN THE MARKET, INTERNATIONAL PRICE TRENDS AMONG
OTHERS.
• GOVERNMENT MONITORS THE STEEL MARKET CONDITIONS AND ADOPTS
FISCAL AND OTHER POLICY MEASURES.
• AN IMG IS FUNCTIONING IN THE MINISTRY OF STEEL, UNDER THE
CHAIRMANSHIP OF SECRETARY (STEEL) TO MONITOR AND COORDINATE MAJOR
STEEL INVESTMENTS IN THE COUNTRY.
• CURRENTLY, BASIC EXCISE DUTY FOR STEEL IS SET AT 12.5% AND THERE IS NO
EXPORT DUTY ON STEEL ITEMS. GOVERNMENT HAS ALSO IMPOSED AN EXPORT
DUTY OF 30% ON ALL FORMS OF IRON ORE EXCEPT LOW GRADES WHICH CARRY
A DUTY OF 10% WHILE IRON ORE PELLETS HAVE AN EXPORT DUTY OF 5%.
• RAISED THE IMPORT DUTY ON MOST STEEL IMPORTS BY 2.5%, TAKING THE
IMPORT DUTY ON CARBON STEEL FLAT PRODUCTS TO 10% AND THAT ON LONG
PRODUCTS TO 7.5%

24. PRICING POLICY AND PRACTICES
OF STEEL INDUSTRY
• NATIONAL STEEL POLICY – 2005 HAS THE LONG TERM GOAL OF
HAVING A MODERN AND EFFICIENT STEEL INDUSTRY.
• THE POLICY AIMS TO ACHIEVE OVER 100 MILLION METRIC TONNES
OF STEEL PER YEAR BY 2019-20 FROM THE 2004-05 LEVEL OF 38 MT.
THIS IMPLIES AN ANNUAL GROWTH OF AROUND 7.3% PER YEAR
SINCE 2004-05.
• STEEL CONSUMPTION IN 2004 IS 1000 MILLION METRIC TONNES
AND IS EXPECTED TO GROW AT 3.0 PERCENT PER ANNUM TO REACH
1,395 MILLION METRIC TONNES IN 2015.
• A POLICY PAPER ON R&D HAS ALSO BEEN PREPARED WITH SPECIAL
FOCUS ON BENEFICIATION, COAL ASH REDUCTION AND PROMOTION
OF PRODUCTION OF HIGH GRADE VALUE ADDED STEEL.
• INTERNATIONAL COAL VENTURES LIMITED, A SPECIAL PURPOSE
VEHICLE WITH EQUITY PARTICIPATION TO AN EXTENT OF 3500
CRORE BY SAIL, RINL, COAL INDIA LTD,NMDC AND NTPC FOR
ACQUISITION OF METALLURICAL THERMAL COAL ASSETS ABROAD
HAS BEEN INCORPORATED.

25. PRICING POLICY AND
PRACTICES OF TATA STEEL• TATA STEEL IS CONSCIOUS TO THE IMPERATIVE TO PROTECT THE
CONSUMERS OF THE STEEL FROM STEEPER PRICE INCREASES. WITH
THE HIGH INCREASE OF THE BASIC INPUTS SUCH AS COAL, IRON
ORE, SCRAP AND PETROLEUM PRODUCTS, THERE HAS BEEN A FOCUS
ON ACHIEVING COST EFFECIENCIES.
• COMPANY HAS BEEN ESPECIALLY CONSIDERATE TO ITS BONAFIDE
CUSTOMERS FOR WHOM THE PRICES ARE OFFERED AT AROUND RS.
5000 PER TONNE LOWER THAN MARKET PRICES.
• WITH THE 70% OF PRODUCTS GOING DIRECTLY TO CUSTOMERS,
THIS LARGE SECTION OF CONSUMERS IS TREATED WITH SPECIAL
CONCERN.
• TO SERVE THE DOMESTIC CONSUMER BETTER, TATA STEEL DECIDED
TO LIMIT EXPORTS LAST YEAR TO 15 % OF TOTAL SALES.
• IN EARLY 1980, ANNUAL PROFITS WERE IN THE REGION OF RS. 6
CRORE. BUT THE COSTS OF EXPANSION AND MODERNISATION HAVE
BEEN SHOOTING UP.
• SINCE 1992, WHEN THE COMPANY STARTED ITS EXPANSION AND
MODERNISATION, IT HAS SPENT OVER RS. 10,000 CRORE.

26. Objectives of Steel Industry
India should have efficient and modern steel industry of
world Standards.
Focus of the policy must be in terms of global benchmark
of efficiency & productivity.
Indian growth rate of Steel Production over 15 Years was
7% and projected steel growth rate is 7.3%.
Increase the Steel Consumption in the world to around
1395 MT from 1000 MT.
To increase the Steel Consumption in the world at 3% per
annum.

27. Objectives of Tata Steel
• Customer Focus
 A major 'Supply Chain Transformation' project aimed at improving customer service
levels.
 Invested in projects to improve product mix and service offering
• Innovation
 14 new products launched in the Financial Year 2012-13, with the majority in
automotive.
 A new chair for research into low carbon materials technology at the University of
Warwick, jointly funded with the Royal Academy of Engineering.
• Operational Excellence
 The No. 4 Blast Furnace at the Port Talbot steelworks in the UK has been restarted
following the completion of the rebuild project.
 The restructuring of the Scunthorpe works, announced in May 2011, was implemented
according to plan over the following 10 month period.

28. Objectives of Tata Steel
• Responsible Behavior
 Commissioning of a new cooling system in the Port Talbot plant,
reducing the site’s need for external power by about 15%.
 Leading role in the European Ultra Low CO2 Steelmaking ('ULCOS')
collaborative project.
• People
 Engaging employees at all levels of the organisation.
 Managing the employment cost base in a responsible manner.

29. GOVERNM
ENT
POLICY ON
STEEL
INDUSTRY

30. Steel industry : Important Policy Measures
 In the new Industrial Policy announced in July, 1991 Iron and Steel
industry, among others, was removed from the list of industries
reserved for the public sector under the Industries ( Development and
Regulation) Act, 1951.
 Iron and Steel industry has been included in the list of `high priority'
industries for automatic approval for foreign equity investment upto
51%. This limit has been recently increased to 74%.
 The trade policy has been liberalised and import and export of iron and
steel is freely allowed. There are no quantitative restrictions on import
of iron and steel items, covered under Chapter No. 72 of the ITC(HS)
Code

31. Role of Iron and Steel Industry in India GDP-Consumption
• The domestic steel consumption in the year 2006-07 was 41.14 million
tonnes
• The average growth rate of the Indian Iron and Steel Industry is 11.36%
• The construction projects all over India are major consumer of steel
• The per capita consumption of steel in India is 35kgs
• As the per capita consumption of steel is lower than other countries, so
the steel industry has huge opportunities in the future
MACRO ECONOMIC SCENARIO WHICH IMPACT THE BUSINESS

33. Articles On Steel Industry
1.Demand supply gap
resulting in increased
imports:
• India was a net importer of steel till FY13
• In 2015 India imported 9.32 MT of steel,
exports declined to 5.59 MT in FY15 from
5.98 MT in FY14.
• During FY11-15, import of steel grew at a
CAGR(compounded annual rate) of 9.01
per cent whereas exports increased at a
CAGR of 11.32 percent.
• Total domestic demand for steel is
estimated at 113.3 MTPA by 2016-17.
Dt: July-2016
Source: http://www.ibef.org/industry/steel.aspx

34. 2. Steel demand in India to outpace regional average
– steel demand in India will outpace the regional average as the country’s GDP growth
of around 7.5 per cent in 2016 and 2017and remains among the highest in Asia as
per Moody’s Investors Services.
– India's reform and policy support for infrastructure and manufacturing, as well as
increasing urbanization, will drive steel consumption.
Dt: July-2016
Source: http://www.firstpost.com/business/steel-demand-in-india-to-outpace-regional-average-moodys-2961492.html
3. India's Steel Exports Fall 32 Percent in 2015-16
– India's steel exports fell 32 percent while imports rose 20.2 percent in fiscal 2015-
16 compared to the previous year.
– "Export of total finished steel was down in 2015-16 at 3.80 million tonnes
compared to the last year. Import of total finished steel at 11.20 million tonnes in
2015-16 compared to the last year.
– India's consumption of finished steel at 80.27 million tonnes saw a growth of 4.3
percent in 2015-16 compared to the previous year.
Dt: April- 2016
Source: http://www.newindianexpress.com/business/news/Indias-Steel-Exports-Fall-32-Percent-in-2015-16/2016/04/08/article3370063.ece

35. 4. Management buyout group Excalibur says still open to buying Tata's UK steel business:
– Management buyout group Excalibur, one of the bidders for Tata's British steelmaking business, despite
Tata pausing to explore joint ventures.
– Tata Steel put the process of selling its major British assets on hold because of the uncertainty caused by
the Brexit vote and surrounding pension liabilities and said it would also look at forming a joint venture.
Dt: July-2016
Source:http://www.firstpost.com/business/management-buyout-group-excalibur-says-still-open-to-buying-tatas-uk-steel-business-2919028.html
5. Centre's forest panel gives nod to Tata Steel's Odisha mining project:
– The Centre's green panel has given clearance to Tata Steel for diversion of forest land for expansion of its
iron ore mining project in Keonjhar district, Odisha.
– the company has sought permission for diversion of 199.1 hectare of forest land, including 2.2 hectare for
safety zone, for iron ore mining and allied activities in Katamani mines in Deojhar and Thakurani Reserved
Forest, Keonjhar district.
– Out of the total forest 57.55 hectare is a reserved forest land
proposed to be diverted. As many as 49,600 trees are required
to be felled in the virgin forest land.
– Total cost of expansion of Katamani iron ore mine project is
estimated at Rs 45 crore up to production level of 5 million
tonnes per annum.
• Dt: April-2016
• Source: http://www.firstpost.com/business/centres-forest-panel-gives-nod-to-tata-steels-odisha-mining-project-2715466.html

36. 6. Tata Steel declared global industry leader in the steel sector by Dow Jones Sustainability Index:
– Tata Steel has been declared as the global industry leader in the steel
sector by the Dow Jones Sustainability Index (DJSI) assessment for the
year 2016. This year, more than 20 global steel majors participated in
the DJSI assessment.
– Tata Steel scored 81 per cent in the assessment, an improvement
from last year’s score of 80 per cent
– It moved from Bronze in the first year to Silver last year and has
emerged as Industry Leader, Gold category, this year
– Out of a total of 23 criterion, Tata Steel achieved 100 percentile in
seven criterion – Customer Relationship Management, Supply Chain
Management, Materiality, Payment Transparency, Operational Eco-
efficiency, Social Reporting and Talent Attraction & Retention.
– The DJSI assessment was created by the investor community in the
year 1999 to evaluate large companies based on economic,
environmental and social criteria.
• Dt: September-2016
• Source:http://www.tatasteel.com/UserNewsRoom/usershowcontent.asp?id=21390&type=PressRelease&REFERER=http://www.tatasteel.com/media/press-release.asp