The presentation discusses Tata Steel's role in the ferrochrome and stainless steel industry, highlighting its significant contributions as one of the largest ferro alloy producers in India and a key player globally. It outlines the history of chrome discovery, usage in stainless steel, and India’s emerging position in the global chrome market, with a notable shift from supplying chrome ore to exporting ferrochrome. Furthermore, it emphasizes the growth potential for India in the stainless steel sector, paralleling China’s earlier development trajectory.

1. INDINOX 2010
Ferrochrome &
Stainless Steel :
Brightening
India’s future
Prabhash Gokarn
Head (M&BD), FAMD,
Tata Steel Ltd

2. Tata Steel – FA&MD – Chrome : Making Steel Stainless
In discussion with Mr. Veerbhadra Singh , Steel Minister

3. Tata Steel – FA&MD – Chrome : Making Steel Stainless

4. Tata Steel – FA&MD – Chrome : Making Steel Stainless
This presentation is an amalgamation of author’s own
views.
Tata Steel does not necessarily subscribe to the views
expressed in the presentation and the views should not
be taken as company policy.

5. Tata Steel – FA&MD – Chrome : Making Steel Stainless
Minerals Division
Ferro Alloys &

6. The TATA GROUP
Strong Brand Equity
USD 62.5 billion
6.3% of India GDP
61% of Group Revenue
Employees 350,000 people
worldwide

7. THE TATA GROUP
The Tata Group
Founded by Jamsetji Nusserwanji Tata in 1869, a visionary,
nationalist and philanthropist who believed that wealth
must be shared
HISTORY OF FIRSTS :
First integrated steel plant
First hotel chain
First hydro electric power plant
First institute of technical education
First to discover & nurture Chrome & Manganese

8. Group Profile
US$25 Bn.
TEA
MOTORS
STEEL
CHEMICALS
SOFTWARE
US$3450M
ENERGY
FERRO ALLOYS &
SERVICES MINERALS TELECOM
US$400M

9. TATA STEEL
Tata Steel is the flagship company of the Tata Group
First to discover and nurture India’s mineral wealth : first Manganese and chrome mines, first Ferro
alloy plant. Amongst the largest Ferro alloy producers in India – amongst World’s top 6 Chrome
producers.

10. CHROME ALLOYS MANGANESE ALLOYS CHROME CONCENTATE DOLOMITE / PYROXINITE
FeCr and ChCr FeMn and SiMn
FERRO ALLOYS MINERALS FLUXES
FERRO ALLOYS & MINERALS DIVISION
Other Divisions:
Long
Flat FAMD
Tubes Products & Agrico & Bearings Engineering
Hand Tools Automation
Products Wires

11. GLOBAL REACH
FACILITIES
CHROM E CUSTOMERS
MANGANESE CUSTOMERS
FLUX CUSTOMERS

12. Some Major Customers……
Excellence Recognises Excellence

13. Facilities & Plants
Mines Location Product Production
Chromite Mines Sukinda, Orissa Chrome Ore 1 Million MTPA
Manganese Mines Joda, Orissa Manganese Ore 0.33 Million MTPA
Dolomite Mines Gomardih, Orissa Dolomite 0.5 Million MTPA
Ferro Alloy Plants Facility Current Product Production
33.5 MVA closed
FAP Bamnipal, Orissa Ferro Chrome 55,000 MTPA
furnace
9MVA & 15MVA
FAP Joda, Orissa Manganese Alloys 50,000 MTPA
semi-closed fce
FAP, Cuttack Orissa 2 * 16.5 MVA fce
Ferro Chrome 50,000 MTPA
TSKZN, Richards Bay,
2 * 38 MVA fce Charge Chrome 150,000 MTPA
South Africa
Additional production of ferro alloys through Long Term
Conversion Arrangements of ~2 lakh MTPA

14. Tata Steel – FA&MD – Chrome : Making Steel Stainless
In India
Chrome Alloy Scenario

15. Tata Steel – FA&MD – Chrome : Making Steel Stainless
Chrome Discovery
• Nicolas-Louis Vauquelin in 1797
• Chromium-iron spinel now known as chromite (FeOCr2O3).
• Colorful salts : name derived from “khrôma”
Greek word for colour.
• In 1798-99, Lowitz & Klaproth independently discovered
chromium from the Beresof Mines South-Eastern France.
Stainless Steel
• Corrosion resistance of iron-chromium alloys first recognized in 1821 by
the French metallurgist Pierre Berthier
• 1890s – 1915 : various patents for different iron – chromium stainless
alloys . Harry Brearley usually credited with first patent for Martensitic
stainless steel in 1915, & Dr Hatfield with invention of 18/8 type Austenitic
Stainless Steel.

16. Tata Steel – FA&MD – Chrome : Making Steel Stainless
Chrome : Usage
Industrial uses & Intermediate Products - Chromite
Refractory Chemical Metallurgical Foundry Sands
Cement kiln Chrome Plating Ferrous Alloys
Fiberglass furnace Corrosion control -Cast Iron
Glass tank regenerator Metal finishing -Steel :
Mag-chrome refractories Pigments alloy
Others Tanning Chemicals stainless
(Chromates, Non ferrous alloys
Di-chromates) Aluminium
Others Copper
94% Nickel
Others
Chromite - Uses
Foundry 70% of chrome used in
Sands
3%
95% of total chrome metallurgical applications -
used in metallurgical is for making stainless
Refractory
1%
Chemical
applications - prime steel
Metallurgic 2%
al demand driver 18% is for making alloy
steel
94%
Source : ICDA, USGS

17. Tata Steel – FA&MD – Chrome : Making Steel Stainless
India in The Global Chrome Market (1)
Global Chrome Reserves
Global Chrome Alloy
Production CY09
India has a total chrome ore India has a total chrome alloy
reserve of 213 million MT production capacity of 876 MVA,
(proved 31mill MT, probable 35 Prodn in 2009 : 6,05,000 MT
mill MT, recoverable 66 mill MT). 70% in state of Orissa
98% in state of Orissa Chinese LAM Coke preferred
Power cost & availability concerns

18. Tata Steel – FA&MD – Chrome : Making Steel Stainless
India in The Global Chrome Market (2)
45 90 30
40
Chrome Ore/Concentrate 80
Ferro Chrome 44 26
33
35 22 70
22 35 34
30 22 25 60 32%
25 60% 50
20 80% 40 50%
15 30
13 20 38
10 9 60%
10 10 18 19
5 10 6
6 5 < 10%
0
0
1 2 3 4 5
Cr Ore/Conc 2005 2006 2007 2008
Export to China Export ROW Used inside India FeCr Export to China FeCr Export to ROW Used inside India
India has moved from mainly a supplier of Chrome Ore/Concentrate to a
global supplier of Ferro Chrome. Today, most chrome ores are used
within India.
Domestic consumption of ferro chrome has remained more or less
stagnant, due to slow growth of the SS & Alloy steel industry. Share of
FeCr used within the country has dropped to one-third.

19. Tata Steel – FA&MD – Chrome : Making Steel Stainless
India in The Global Chrome Market (3)
Production capacity 2.5 mil MT.
Product mix- 75% Flat :25% Long. 76% output in 200 series.
10% in 400 series fast growing
Majority from Private enterprises which mainly produce Flat
products. 5% production from Govt enterprises who are mostly
in Long products
In 2009 SS production expected 1.8 to 2.4 mill MT (figures
from different sources!!).
SS Exports 0.5 million MT, mainly Bright Bars, Utensils.

20. Tata Steel – FA&MD – Chrome : Making Steel Stainless
China in The Global Chrome Market (1)
Chrome Ore
Insignificant Chrome Ore Reserves compared to India
Chrome ore production < 3 lakh MT, mainly used for refractory &
chemical applications.
Imports Chrome Ore from mainly S Africa, Oman. Imports from India
have reduced sharply.
Ferro Chrome
Turned a net importer of HC Ferro Chrome from 2002.
Significant imports from India. Quantum jump in HC FeCr imports in last
2 years.
Significant producer of Silico Chrome & LC FeCr

21. Tata Steel – FA&MD – Chrome : Making Steel Stainless
China in The Global Chrome Market (2)
8000 SS Prodn In China grew at a 6,940
CAGR of @22% (2005-2009) 6,290
6,000
6000 6,449
4,505 4,979
Quantity('000 MT)
6,091
4000 3,024
4,325
2,686 1,506
2000 1,348 1,660
854 1,043 1,296
440 1,094 750
0 233
2005 2006 2007 2008 2009 Till Sept
SS production Import of Chrome Ore & Conc
Production of Ferro Chrome Import of Ferro Chrome
Total production capacity 13 million MT; one-third of global capacity
Flats : 7 million MT - State Owned Joint enterprises
Longs : 6 million MT – mostly private enterprises
2009: SS production expected 8 mill MT, capacity utilisation of 62%.
Significant exports. China now the world’s largest SS Player.

22. Tata Steel – FA&MD – Chrome : Making Steel Stainless
China in The Global Chrome Market (2) – India Factor
China’s dependence on India in Chrome Ore or Chrome Alloys
India’s spend share as supplier of Chrome Ore & Conc to China
2005 : 32%, 2007 : 16%, 2009 : 7%
India’s spend share as supplier of Ferro Chrome to China-
2005 : 28%, 2007 : 14%, 2009 : 17%
Share of India’s Ferro Chrome export to China as part of India’s total production
increased to a level of 60%
China prefers Indian Ferro Chrome :
- High grade
- Short Sailing Time
- No Seasonal Effect
-Time zone advantage
Domestic FerroChrome Demand
Demand in India for ferro chrome has not grown significantly as yet : growing
from 1.7 mill MTPA to 2.5 mill MTPA (2000-2009)

23. Tata Steel – FA&MD – Chrome : Making Steel Stainless
Other issues in India
1. Secure suppliers / customers : LT Contracts with fixed
monthly committed lifting quantity
2. Price : need to evolve an acceptable BM. Monthly/quarterly
BM based pricing on LT Contracts.
3. Improvement in Logistics : specially inland transport in
Orissa and from the Eastern to the western part of India.
4. Power availability and need to keep power costs low

24. Tata Steel – FA&MD – Chrome : Making Steel Stainless
¿ Quo Vadis ?

25. Tata Steel – FA&MD – Chrome : Making Steel Stainless
Ferro Chrome : India catching up with China
1,600 1,576
1,600 1,500 1,476
1,450 1,450
1,500 1,406
1,350
1,400
1,300
'000 MT
1,156
1,200
1,100
1,041
1,000
900
800
2009 2010 2011 2012 2013
China India
China turned a net importer of HC Ferro Chrome from India since
2002, with a quantum jump in HC FeCr imports in last 2 years.
Significant increase in FeCr production within India forecast, India will
catch up with China by 2013.

26. Tata Steel – FA&MD – Chrome : Making Steel Stainless
Projected Stainless Steel Growth
China India
12,000
10,690 11,070
9,760 Year Flat Long Total
9,100
9,000 8,400
2005 1001 153 1154
'000 MT
6,000
2010 1685 373 2058
3,000
2015 3185 900 4085
0
2010 2011 2012 2013 2014 Source ISSDA
Stainless Steel :
•China SS growth to slow to 6-8% CAGR between 2010 - 2015
•Significant opportunity for India to emulate growth of China during 2005-
2009 (@22).
•However, most optimistic projections for Stainless Steel by ISSDA @12%
CAGR

27. Till 2000 2001 to 2004 2005 to current The possible future
Tata Steel – FA&MD – Chrome : Making Steel Stainless
Stainless Steel China reaching half Emergence of China as Dominance of China in Increased Dominance of
million MT production player of significance global Stainless Steel China, Emergence of India
in global Stainless Steel production : high growth in Stainless
Steel production
Increased production of
Ferro Chrome No Ferro Chrome import by China starts importing Ferro Chrome in China and Higher production
China Ferro Chrome : 1st time India. consumption & export of
import rom India Quantum jump in India’s Ferro Chrome in India.
share in China’s import
China secures Chrome Ore
Chrome Ore supplies through equity
India’s production reaches India’s production reached Restriction of Ore supply stakes in Zimbabwe, South
2 million MT 3 million MT with one third from India . China shifted to
exported to China supply from other countries Africa etc. Further
consolidation : Cr Ore -
FeCr - Stainless Steel

28. Tata Steel – FA&MD – Chrome : Making Steel Stainless
• Rapid increase in Ferro chrome demand in
China and India will boost Ferro Chrome
production in India in a big way.
• An opportunity exists for India to grow like China
did in the global Stainless Steel arena, and
emerge as a big global producer, consumer and
exporter of stainless steel.

29. Tata Steel – FA&MD – Chrome : Making Steel Stainless
THANK YOU
for more information :
please visit us at – www.tatasteel.com/famd
email - prabhash.gokarn@gmail.com

30. Visitors At Our Stall
Mr. Veerbhadra Singh , Steel Minister Delegates from S S World news, Netherlands
Mr. S K Rungta, Chairman SAIL Mr. Sujal Shah, Director Commercial, Shah Alloys

31. Visitors At Our Stall
(Right) Mr. Rajesh Agar, GM procurement, Electrotherm Mr. NeelKamal Vakil, AIA Engineering
Mr. Sanjay Purohit, Our Ahmedabad depot representative Our Hostess explaining to the visitors