tata steel - leadership with trust

8/4/2019 TATA STEEL - Leadership With Trust

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Leadership With Trust


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VisionWe aspire to be the global steel

industry benchmark for

Value Creation and Corporate

Citizenship


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Mission To scale the heights of excellence

in all that it does

To Function in an atmosphere

free from fear

To have full faith in democraticvalues.


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Type Public (BSE: 500470)

Founded 1907

HeadquartersMumbai,

Maharashtra, India

Key people

Ratan Tata

(Chairman)B Muthuraman

(Managing Director)

Industry Steel


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Products

Hot and cold rolled

coils and sheets

Wire and rods

Construction bars

Pipes

Structurals and

forging quality steel

Revenue US$32.77 billion

(2009)

Total assets $31.16 billion

(2009)Employees 86,548 (2009)

Parent Tata Group

Website TataSteel.com


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INDIAN STEELINDIAN STEEL

INDUSTRYINDUSTRY


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OVERVIEW

Fifth largest producer of steel in the world

and second largest producer of crude steel

Steel production reached 28.49 million tonne(MT) in April-September 2009.

About 50% of the steel produced in India is

exported.

India accounts for over 7% of the total steel

produced globally


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OVERVIEW

India accounts for around 5 per cent of

the global steel consumption

Huge Iron Ore reserves 23 bn. tonnesIndian Steel Producers are increasingly

looking for overseas acquisitions in

steel as well as raw materials.

Positive overall growth in the

production of crude steel


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killed Human

Resources

Abundant Iron Ore

Government Policy

Huge Potential for Demand

High GDP growth rate of 7%

1 billion population

Low per capita steel consumption of 33kg (World av. 181 kg)

Reserves 23 billion tonnes

Stable currency

Easing of regulations

Strong Banking & judicial system

Growth

factors

for India

Encouraging trade relations with

ASEAN and other countries

Infrastructure building

Exploring new Energy resources

Indian Potential for Steel


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1949 1953 1957 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2008

INDIAS CRUDE STEEL PRODUCTION (MT)

HISTORIC TRENDS

* Year indicates FY

Enabled by

Indias

Economicliberalization

process

India gains independence

in 1947

6.6 mT

in 1973

16.2 mT

in 1991

1.25 mT

in 1948

58 mT

in 2008


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-5

0

5

10

15

20

00-01 01-02 02-03 03-04 04-05 05-06

%g

ro

wth

Construction

Manufacturing

Capital Goods

Consumer

Durables

BOOMING STEEL CONSUMING SECTORS

Industrial growth led byManufacturing

Capital and Consumer Goods sectors flag bearers of manufacturing sector growth

Capital Goods

Manufacturing

Construction

Consumer Durables


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OtherMajor Steel Producers

Tisco JSW

Essar Steel

RINL MECON

MOIL

MSTC KIOCL

NMDC


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Top 10 Players

1st; 103.3 mmt; ArcelorMittal

2nd; 37.5 mmt; Nippon Steel

3rd; 35.4 mmt; Baosteel Group

4th; 34.7 mmt; POSCO

5th; 33.3 mmt; Hebei Steel Group

6th; 33.0 mmt; JFE

7th; 27.7 mmt; Wuhan Steel Group 8th; 24.4 mmt; Tata Steel

9th; 23.3 mmt; Jiangsu Shagang Group

10th; 23.2mmt; U.S. Steel


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TATA STEEL LIMITED

Tisco -1907

Country's single largest

Integrated steel plant Technical collaboration with Nippon Steel &

Arcelor

In January 2007 Tata Steel made a successful$12.04 billion offer to buy European steelmaker Corus Group PLC.


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Benefits From Corus


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Portfolio of Products

TSL products, produced by the Companys

Indian operations

NatSteel and Tata Steel Thailand operations,and

Corus products, produced in the United

Kingdom and The Netherlands.


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TSL Products

Finished and semi-finished steel products;

Ferro alloys products; and

Other products and services, including tube

products, bearing products, refractory products,pigments, municipal services and investmentactivities.


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Corus Products

Strip products;

Long products;

Distribution and building systems;

and

Aluminum.


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Finished & Semi-Finished Steel

Products


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Finished & Semi-Finished Steel

Products


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Ferro Alloys Segment Products

Produces chrome ore, pyroxenite andmanganese ore as well as ferro chrome andferro manganese.

Ferro chrome and ferro manganese are usedby the steel industry to create stainless steelproducts.

TSL is the leading manufacturer of ferrochrome in India and the leading manufacturerof chrome ore internationally.


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Other Services Segment

Production of tubes, bearings and the provision ofservices. TSL is the largest manufacturer of steel tubesin India.

TSL produces tube products mainly in the commercialtube and precision tube categories.

Commercial tubes are used primarily for piping water,gas and steam for irrigation and other agricultural usesas well as for industrial purposes and are marketedprimarily to builders, contractors and distributors.


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Other Services Segment

Precision tubes are sold primarily to automotive

and bicycle manufacturers, boiler manufacturers,

the fertilizer industry and to furniture

manufacturers.

TSLs bearings division manufactures ball bearings

and taper roller bearings. Major customers of thebearings division include companies in the

automotive and engineering industries.


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Corus Products


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Corus Products


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Distribution and Building Systems

Corus sells its finished carbon steel products directly toend users and through its own stockholding and servicecenter businesses.

Stockholders purchase steel from high-volumeproducers for subsequent resale, and service centerspurchase steel stocks for further processing prior toselling to customers.

The stockholding and service center section plays amajor role in the distribution of most finishedproducts.


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Aluminum

Corus aluminum division now only reflect retainedaluminum smelting and metal trading operations.

Corus primary aluminum smelters produce rollingingots and billets made from alumina (processedbauxite) using an electrolysis process.

Approximately 75% of this division's 272,000 tonnes

output is dedicated to the downstream operations thatwere sold to Aleris International Inc., with theremainder sold to external customers under tolling ordirect sales contracts.


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Tata Steel LimitedSales & Distribution


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Indian Sales

Tata Steel Limited currentlysells approximately 91% ofits Indian operationsproduction in the Indian

market. In India, Tata Steel Limited

sells the majority of its steelproducts to theconstruction and

infrastructure industries,the automotive industryand the general engineeringindustry.

Tata Steel Limiteds principalproducts sold to the Indianconstruction andinfrastructure industry are

long products.

Tata Steel Limited targetslarge constructioncompanies involved in

infrastructure projects ascustomers


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Indian Distribution andMarketing

Direct supply channels,

21 stockyards,

25 consignment agents,

15 external processing agents and

A network of distributors and retailers operatingthrough 22 sales locations in India.


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Indian Distribution andMarketing


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Exports from India

Excluding intra-company transfers, in the yearended March 31, 2007, TSL exported from Indiaapproximately 403,000 tonnes of steel products,corresponding to 9% of its net sales, with Europeas its most significant export market.

An increased demand in India for steel productsstarting in 2007 led to a comparatively lower level

of exports as a percentage of net sales in the yearended March 31, 2007 (9%) compared to those inthe year ended March 31, 2008 (12%).


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Asia Pacific Sales outside of India

TSL currently has 14 salesoffices in 12 countries inAsia Pacific countriesoutside of India.

The NatSteel and TataSteel Thailandacquisitions have

strengthened TSLs salescapability in the AsiaPacific region.

For example, NatSteelssales distribution networkincludes direct sales toprivate customers and to

wholesalers in the AsiaPacific region.

Tata Steel Thailand sells

its products almostentirely within Thailand.


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COMPETITIVE ADVANTAGE

Harnessing New and BetterSources of RawMaterials

Innovating to Use Blue Dust

Process Innovation in theSinter Plant

New CokeMakingTechnology

Blast FurnaceOptimization

Reducing Energy Costs

Addressing Overstaffing

Modernization ofFacilities


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COMPETITIVE ADVANTAGE

Transformation into a

Customer-driven Culture

Challenge of being

Internationally Competitive

Accountability Issues

Quality and Cost at the

Centre-stage

Creation and Spread of a

New Performance Culture


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Tata Steel: THE QUEST FOR BUSINESS

EXCELLENCE


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STRENGTHSPRODUCTION CAPACITY

STRONG DISRTIBUTION NETWORKIMAGE/BRAND

WEAKNESS

Location

Distribution cost

OPPORTUNITYLARGE UNTAPPEDMARKET

GROWING DEMAND

THREATSCHANGING ECONOMY

SWOT


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InnovativeMarket Place Initiatives:

For Retail Customers: Innovation with Retail Customers suchas Distributors, Retailers, End Customer, Fabricator, SmallerOEs should be done by:

E- Linking the distributors

Retail Value Management

Brand Management

Recommended Consumer Price

Retail Identity Programme


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InnovativeMarket Place Initiatives:

For Institutional Customers: Key Accounts are handled usinginnovations like:

Customer Value Management

Advanced Planning System

Dedicated Service Centers

Tie-up with global majors for high-end products

EVI for the Auto Segment

Long tem Contracting


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TATA STEEL

STRATEGIES


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tata steel - leadership with trust

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