WELCOME YOU ALL

A Century Of Trust
ry of an industrial empire, emerge from the illustrious effort
fire burning.
 Going Global

2000-05 2005-06 Green Fields

Tata Motors – Daewoo HV

Tata Chem – Brunner Mond Tata Tech - INCAT

IHCL - The Pierre Tata Tea - Tetley Tata Tech - Cedis

TACO – Wundsch Weidinger

VSNL - Tyco Global Network
Tata Chem - IMACID
Tata Interactive – Tertia Edusoft

Tata Steel – Millennium Steel

Tata Tea- Good Earth Tata Motors – Hispano Carrocera
VSNL - Teleglobe
IHCL – Blue
Zambia: Bus body building plant: Tata Zambia

South Africa: Ferro Chrome Plant: Tata Steel

TCS - Comicrom Second National Operator: VSNL
Tata Steel – NatSteel
Uganda: Coffee
plant: Tata Coffee Tata Steel – AMCI

Bangladesh: Steel Plant; Tata Steel TCS- Financial Network Services

Fertiliser Plant: Tata Chemical
Power: Tata Power
 Brief Details Of Steel Sector In India

qPresently India is the fifth largest steel-producing nation in the world with
production of over 54 million tonne (MT).
q
q
qIt has a very low per capita consumption of steel around 46 kg as against an
average of 198 kg of the worlds per capita consumption.
q
q
qBeing a core sector, steel industry tracks the overall economic growth in the
long term. But steel demand also being derived from some other industrial
sectors like automobiles, consumer durables and infrastructure.
q
q
qThe Indian steel sector enjoys advantages of domestic availability of raw
materials and cheap labor. Iron ore is also available in abundant quantities.
This provides major cost advantage to the domestic steel industry.
 Continue……
qIndian steel companies have to bear additional costs pertaining to capital equipment,
power and inefficiencies (low per employee productivity). This has resulted in the
erosion of the edge they would have otherwise enjoyed due to availability of cheap
labor and raw materials.
q
qThe government reinstated basic customs duty on steel imports in order to protect
India from dumping of cheap steel products. It has also provided series of benefits to
auto, housing and real estate sector in order to counter the slowdown in the economy.
 Overview Of Tata Steel
Ø1907: Tata Iron and steel company was formed in Mumbai
ØPlant was settled at Vill: sakchi(Presently known as Jamshedpur)
q
ØKey People: Ratan Tata (Chairman)
B. Muthuraman (Vice-chairman)
H.M. Nerukar (Managing Director)

ØMajor Production: Adress Line:

•Hot and cold rolled coils and sheets
•Wire and rods Tata Steel Limited
•Construction bars Bombay House,
•Pipes 24, Homi Mody Street, Fort,
Mumbai 400 001.
•Structural and forging quality steel Phone : (022) 6665 8282
Fax : (022) 6665 7724/6665 7725
E-mail : cosec@tatasteel.com
Website : www.tatasteel.com
 Vision & Mission Statement
VISION:

We aspire to be the global steel industry

benchmark for Value Creation and Corporate
Citizenship

MISSION:

Consistent with the vision and values of the

founder Jamsedji Tata, Tata Steel strives to
strengthen India’s industrial base through
the effective utilization of staff and
materials. The means envisaged to achieve
this are high technology and productivity,
consistent with modern management practices.
 Major Plant Location (In India)

Company’s Steel Works and Tubes Division .. ….…..….Jamshedpur (Jharkhand)

Bearings Division ……………………..……………… Kharagpur (West Bengal)

Ferro Manganese Plant ..................................................................... Joda (Orissa)

Charge Chrome Plant ………….…………………………….. Bamnipal (Orissa)

Cold Rolling Complex ……………………..……….…... Tarapur (Maharashtra)

Mines, Collieries & Quarries ……..…States of Jharkhand, Orissa and Karnataka

Wire Division ………..…………………………………………………. Borivli

Tarapur (Maharashtra)
Bangalore (Karnataka)

Agrico Plant …………………………………………. Indore (Madhya Pradesh)

 Project And Operation: International
The Tata Steel Group’s growth and
globalization strategy is driven by its
business expansion while maintaining
profitability and mitigating risks. The Tata
Steel Group over the years has focused on
enhancing raw material security and
announced major joint ventures in various
parts of the globe.

qOperation In Other Countries

Are……
•Singapore
•Thailand
•Vietnam
•Oman
•Ivory Coast
•Mozambique
•
•
•
 Facts About Tata Steel
ØThis is the 10th largest steel company

Ø2nd most geographically diversified steel producer

ØA balanced global presence in over 50 markets

ØManufacturing operations in 26 countries

ØOne of the world’s lowest cost producer

ØA share holder base of over 800,000 people

ØAn employee strength over 81,000 across 5 continents

Major Competitors Of Tata Steel: Domestic
 Managerial Discussion By Tata Steel Executives

ØHow has the global economic crisis affected the Steel Industry
in the last 12 months?
Ø
ØHow did the Indian and South East Asian operations perform
during this year?
Ø
ØWhat are your views on the steel market in India?
Ø
ØHow have the raw material projects progressed during the year?
Ø
Share Holding Pattern
 Corporate Social Responsibility

ds the people of the area in which it is

ear development undertaken by co - operati
 Awards

Replete with leadership capabilities in economic, social and

environmental sustenance, the Tata Steel Group proudly upholds
the heritage of returning to society what it earns. Its long journey
of excellence has been recognized worldwide and rewarded by
renowned institutions and agencies.
 Some Key Awards…..
ØThe Golden Peacock Global Corporate Social Responsibility Award for its continual
commitment to ethical behavior and its contribution to economic development while
improving the life of the community.
Ø
ØThe Economic Times Company of the Year Award for making a fundamental
difference to the way business is done.
Ø
ØThe Best Establishment Award by the President of India, Mrs. Pratibha Devi Singh
Patil.
Ø
ØThe Think Odisha Leadership Award for 100 years of service to the nation.
Ø
ØNational Safety Awards to the West Bokaro and Jharia divisions.
Ø
ØCorus’ Scunthorpe site was recognised by the North Lincolnshire Health and Safety
Group as one of the most improved companies for accident prevention within the group
in March 2009.
Ø
ØNatSteel Holdings bagged the Platinum Singapore HEALTH (Helping Employees
Attain Life Time Health) Award in November 2008.
Ø
Product Portfolio Of Tata Steel
Big Brands
 Where The Products Are Used

•AUTOMOTIVE
•AEROSPACE
•CONSUMER GOODS
•MATERIAL HANDLING
•ENERGY AND POWER
•RAIL
•ENGINEERING
•AGRICULTURAL TOOLS AND EQUIPMENT
•SHIP BUILDING
•SECURITY AND DEFENCE
 Steel Production Process

Tata Steel has over the years, undertaken extensive research in making the process of
steelmaking more energy efficient, economically viable and environmentally
sustainable. Given is a virtual representation of the steps involved in the Company’s
steelmaking process.

www.tatasteel.com→ product & process→ steel making process

 Stock Exchange Information

STOCK EXCHANGE SYMBOL ISIN

BOMBAY STOCK 500470 (Demat form) INE081A01012

EXCHANGE (BSE)

NATIONAL STOCK TATA STEEL INE081A01012

EXCHANGE (NSE)
 OTHER ISIN FOR GDRs, FCCBs, CARs..

STOCK EXCHANGES SECURITY ISIN

Luxembourg Stock Exchange GDRs US87656Y1091

London Stock Exchange GDRs US87656Y4061

Singapore Exchange CARs XS0315783026

Singapore Exchange FCCBs XS0466930780

Stock Performance In Last Six Months
 CREDIT RATING

STANDARD &POOR’S
OUTLOOK STABLE
Long-term Credit Rating (Foreign Currency) BB-
Long-term Credit Rating (Local Currency) BB-

FITCH
Outlook (long-term rating) NEGATIVE
Long-term Corporate Credit Rating (Foreign BB+
Currency)
Long-term Corporate Credit Rating (Domestic AA
Currency) Corporate Credit Rating (Domestic
Short-term F1+
Currency)
 Bankers Of Tata Steel

State Bank of India……………………………………Rs 3500.00

Axis Bank……………………......................................Rs 1000.00
HDFC Bank……………………………………………Rs 650.00
IDFC……………………………………………………Rs 199.00
Deutsche Bank………………………………………….Rs 300.00
Canara Bank……………………………………………..Rs 22.56
Standard Charted Bank…………………………………Rs 205.00
* Data collected from Annual Report 2009-10( Rs in Crore)
 Auditor’s Report
Auditor : Deloitte
•The Company has maintained proper records showing full particulars, including
quantitative details and situation of the fixed assets.
•
•The Company has maintained proper records of its inventories and no material
discrepancies were noticed on physical verification.
•
•During the course of our audit, we have not observed any major weakness in such
internal control system.
•
•The Company has an adequate internal audit system commensurate with the size and
the nature of its business.
•
•The Company has not defaulted in the repayment of dues to banks, financial
institutions and debenture holders.
•
•The Management has disclosed the end use of money raised by public issues.
•
•No fraud by the Company and no material fraud on the Company has been noticed or
reported during the year.
Financial Indicators
Working Capital Management
Trend Of Current Assets, Current Liability And Net Working Capital
 Contingent Liabilities

• Guarantees
Ø The Company has given guarantees aggregating Rs. 622.37 crores (31.03.2009 :
Rs. 930.97 crores) to banks and financial institutions on behalf of others. As at
31st March, 2010 the contingent liabilities under these guarantees amounted to
Rs. 622.37crores (31.03.2009 : Rs. 930.97 crores).
Ø
•
Continue……

• Uncalled liability on partly paid shares and debentures Rs.

0.01 crore (31.03.2009 : Rs. 0.01 crore).
•
• Bills discounted Rs. 332.03 crores (31.03.2009 : Rs. 497.90
crores).
•
• The Company was given by Tata Sons an option to sell
52,46,590 equity shares in TTSL (Tata Teleservice Ltd.) to
the SP (Strategic Partner-Inc. of Japan, as part of a
secondary sale of 25,31,63,941 equity shares effected along
 Shareholder/Investor Complaints:

• Complaints pending as on 1st April, 2009 : 6

•
• During the period 1st April, 2009 to 31st March, 2010, complaints
identified and reported under Clause 41 of the Listing Agreements :
1492
•
• Complaints disposed off during the year ended 31st March, 2010 : 1492
•
• Complaints unresolved to the satisfaction of shareholders as on 31st
March, 2010 : 6
•
• No. of pending share transfers of Ordinary Shares as on 31st March, 2010 :
160*
•

• * Transfers lodged in the last two weeks of March 2010 and hence
ANNUAL GENERAL MEETING
Directors report
 Growth Agenda
1.Domestic Leadership
2.Globally Competitive
3.Internationalisation
4.Expand Addressable Market
Powering Steel Growth

Total Planned Capacity Addition

(Thermal +Hydro+Nuclear)

2002-07 41,100 MW
(Likely to be achieved – 34000 MW)

2007-12 67,000 MW
(inclusive of Non Conventional
Sources of Energy)
 STRATEGY

v Demand Side
•

– Strengthening of delivery chain

– Interface between producers, designers of steel
intensive products, fabricators and ultimate user
– Creating awareness about cost-effective and technically
efficient end-use of steel
•

vSupply side
•

– Enhanced and easy access to critical inputs – iron ore

& coking coal
– Expansion and improvement in quality of infrastructure
– Well developed financial market
– Increased focus on R&D, training of manpower and
integrated information services
 Strategies For Fuelling Demand

• Facilitate Rural Consumption

• Increased usage in Bridges, Crash Barriers,
Flyovers and Building Constructions
• Closer interaction between INSDAG / Large
Producers and Architects/ Engineers/ Students
•
•
• Huge potential upside in Per Capita Consumption
•
•
 Focus on Infrastructure

v Planned additional 75 MTPA of steel implies 300MT of

additional traffic.
v Railways :
– Participation by Steel Industry in the creation of
railway infrastructure.
v Roads:
– Road network to be expanded; national highway
development
v Ports:
– Steel producers would be encouraged to develop
port and berth facilities.
Future of Indian Steel Industry

You ain’t seen nothing yet !

 Projected per Capita consumption of
Finished Steel in India (kg)
Year Per Capita Steel Consumption

2011-12 48

2019-20 80

2024-25 110

2029-30 135

2034-35 175

India’s current population is - 1050 million

It is assumed that till 2051, population would be about : 1.4 bn.
 GROWTH SCENARIOS
Optimistic Case Medium Conservative
Growth
Fin. Steel Consum- Fin. Steel Consum- Fin. Steel Consum-
Cons. ption Cons. ption Cons. ption
Growth (mTpa) Growth Rate (mTpa) Growth (mTpa)
2005- Rate
7.6% 100 6.9% 90 * Rate
5.5% 76
2020
2020- 6.5% 188 5.5% 147 4.5% 118
2030
2030- 5.0% 305 4.0% 217 3% 158
2040
2040- 5.0% 498 4.0% 322 3% 212
2050

* - Also projected by National Steel Policy

 Individual Development
Profile
• IDP is a fact sheet about the individual.
• Is prepared by the manager of the employee.
• Is endorsed by the Function/SBU Head and finally signed off by the CEO of the company.

Personal Details: Age, Work & Career

Education Details

Development Plan Performance

IDP
Data

Tata Work
Tata Leadership Level & MCPA
Practices Data Assessment
 Tata Leadership Practices

Leadership of Results Leadership of Business Leadership of People

Drive for Results Managing Vision & Purpose Taking Ownership

Timely Decision Making Strategic Capability People Development

Customer Focus Dealing with Ambiguity Interpersonal Effectiveness

Innovation Management Business Acumen Withstanding Pressure

Functional Excellence Building Effective Teams

 Talent Management Schedule

1 Annual Performance 2 Talent Review within 3 Presentation of Talent

Review & Development Business Unit/Function Review by BU /
need discussions with Functional Leaders to
individual employees MD/CEO
Manager / Employee BU Leadership Team & CEO
BU Leadership Team Jul - Aug
Apr - Jun Jun - Jul

5 4 Talent Review at Company

Implement Development & Movement level
plans
•In Company Identification of HPMs and
•Cross Company / Group Level their Development and
Movement Plans
CEO & HR Head
7&8 Sep - Mar CEO & HR Head
Aug

6
Implement agreed cross Group PPM discussions
company Movement
Agree on Development &
plans & Group level
Movement plans
Development programs

CEO & Head HR and CEO & Head HR and

Group HR GCC / Peer MD / Group HR
Oct – Sep Sep – Feb
 How Does Development take place?

•10 % Training Courses

•
•20 % Interaction with People
•Coaching, Mentoring, Experts,
Colleagues
•

•70 % Challenging Jobs

 Tata Leadership Development Programme

International
Consortium
Program
TGSLS
Level C+

TGELS
Level D and C
Functional
Leadership
Programs

TGYLS
Level F and E

Over 800 managers covered in last 5 years and over 65% are from HPM list
 TATA Steel
SWOT Analysis
 SWOT ANALYSIS OF TATA STEEL INDUSTRY

STRENGTHS WEAKNESSES
•Abundant resources of iron ore •High cost of energy
•Low cost and efficient labour force •Higher duties and taxes
•Strong managerial capability •Infrastructure
•Strongly globalised industry and •Quality of coking coal
emerging global competitiveness
•Labour laws
•Modern new plants & modernised old
•Dependence on imports for steel
plants
manufacturing equipments &
•Strong DRI production base technology
•Regionally dispersed merchant rolling •Slow statutory clearances for
mills development of mines
 SWOT ANALYSIS OF TATA STEEL INDUSTRY

OPPORTUNITIES THREATS
•Huge Infrastructure demand •Slow growth in infrastructure
development
•Rapid urbanisation
•Market fluctuations and China’s
•Increasing demand for consumer export possibilities
durables
•Global economic slow down
•Untapped rural demand
•
•Increasing interest of foreign steel
producers in India
 “We generate wealth for the people. What comes
from the people must, to the extent possible,
therefore get back to the people.”
- Bharat Ratna, J R D Tata

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