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WELCOME YOU ALL
A Century Of TrustThe origins and ascent of Tata Steel, which has
culminated into the century long history of an industrial empire, emerge from the illustrious efforts of India's
original iron man and the remarkable people who thereafter, have kept the fire burning.
Going Global
Tata Chem - IMACID
Tata Tea - Tetley
Tata Steel – NatSteel
Tata Motors – Daewoo HV
Tata Tech - INCATTata Chem – Brunner Mond
Tata Motors – Hispano CarroceraTata Tea- Good Earth
IHCL - The Pierre
TCS - Comicrom
Tata Tech - Cedis
TACO – Wundsch Weidinger
Tata Interactive – Tertia Edusoft
Tata Steel – Millennium Steel
IHCL – Blue
TCS- Financial Network Services
Tata Steel – AMCI
Green FieldsGreen Fields
VSNL - Teleglobe
Zambia: Bus body building plant: Tata Zambia Zambia: Bus body building plant: Tata Zambia
South Africa: Ferro Chrome Plant: Tata SteelSecond National Operator: VSNL
South Africa: Ferro Chrome Plant: Tata SteelSecond National Operator: VSNL
Uganda: Coffeeplant: Tata Coffee
Uganda: Coffeeplant: Tata Coffee
Bangladesh: Steel Plant; Tata SteelFertiliser Plant: Tata ChemicalPower: Tata Power
Bangladesh: Steel Plant; Tata SteelFertiliser Plant: Tata ChemicalPower: Tata Power
2000-05 2005-062005-06
VSNL - Tyco Global Network
Brief Details Of Steel Sector In India
Presently India is the fifth largest steel-producing nation in the world with production of over 54 million tonne (MT).
It 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.
Being 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.
The 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……
Indian 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.
The 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
1907: Tata Iron and steel company was formed in MumbaiPlant was settled at Vill: sakchi (Presently known as Jamshedpur)
Key People: Ratan Tata (Chairman) B. Muthuraman (Vice-chairman) H.M. Nerukar (Managing Director)
Major Production:• Hot and cold rolled coils and sheets• Wire and rods• Construction bars• Pipes• Structural and forging quality steel
Adress Line:
Tata Steel LimitedBombay House,24, Homi Mody Street, Fort,Mumbai 400 001.Phone : (022) 6665 8282Fax : (022) 6665 7724/6665 7725E-mail : cosec@tatasteel.comWebsite : 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.
Operation In Other Countries Are……•Singapore • Thailand• Vietnam• Oman• Ivory Coast
• Mozambique
• South Africa• Australia• Canada• United Kingdom• The Netherland
Facts About Tata Steel
This is the 10th largest steel company
2nd most geographically diversified steel producer
A balanced global presence in over 50 markets
Manufacturing operations in 26 countries
One of the world’s lowest cost producer
A share holder base of over 800,000 people
An employee strength over 81,000 across 5 continents
TATA JINDAL ESSAR SAIL
Sales 24315.77 14001.25 11688.3 43150.08
Profit after tax 5201.74 4498.95 1859.1 20797.31
25007500
1250017500225002750032500375004250047500
Comparison
Rs.
in C
rore
Major Competitors Of Tata Steel: Domestic
Managerial Discussion By Tata Steel Executives
How has the global economic crisis affected the Steel Industry
in the last 12 months?
How did the Indian and South East Asian operations perform
during this year?
What are your views on the steel market in India?
How have the raw material projects progressed during the
year?
32%
4%
0%0
%22%
16%
3%
21%
1%
Indian PromoterMutual funds/UTIFinancial institutions/BanksCentral Govt./State Govt.Insurance companyFIIBodies corporateIndividualsShare held by custodian
Share Holding Pattern
"Every Company has a special continuing responsibility towards the people of the area in which it is located. The Company should spare its doctors, managers to advice the people of the village and supervise near development undertaken by co-operative effort between them and the company" - Mr. J.R.D. Tata
Corporate Social Responsibility
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…..
The 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.
The Economic Times Company of the Year Award for making a fundamental difference to the way business is done.
The Best Establishment Award by the President of India, Mrs. Pratibha Devi Singh Patil.
The Think Odisha Leadership Award for 100 years of service to the nation.
National Safety Awards to the West Bokaro and Jharia divisions.
Corus’ 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.
NatSteel Holdings bagged the Platinum Singapore HEALTH (Helping Employees Attain Life Time Health) Award in November 2008.
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 EXCHANGE (BSE)
500470 (Demat form) INE081A01012
NATIONAL STOCK EXCHANGE (NSE)
TATA STEEL INE081A01012
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
1/4/
2010
15/0
4/10
3/5/
2010
17/0
5/10
1/6/
2010
15/0
6/10
1/7/
2010
15/0
7/10
2/8/
2010
16/0
8/10
1/9/
2010
15/0
9/10
1/10
/201
0
15/1
0/10
0
100
200
300
400
500
600
700
800
TATA STEEL(NSE)
TATA STEEL(NSE)
1/4/
2010
15/0
4/10
3/5/
2010
17/0
5/10
1/6/
2010
15/0
6/10
1/7/
2010
15/0
7/10
2/8/
2010
16/0
8/10
1/9/
2010
15/0
9/10
1/10
/201
0
15/1
0/10
0
1000
2000
3000
4000
5000
6000
7000
CNX NIFTY
CNX NIFTY
CREDIT RATING
OUTLOOK STABLE
Long-term Credit Rating (Foreign Currency) BB-
Long-term Credit Rating (Local Currency) BB-
STANDARD &POOR’S
Outlook (long-term rating) NEGATIVE
Long-term Corporate Credit Rating (Foreign Currency) BB+
Long-term Corporate Credit Rating (Domestic Currency) AA
Short-term Corporate Credit Rating (Domestic Currency) F1+
FITCH
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
31.3.2008 31.3.2009 31.3.2010
Inventory Turnover Ratio 8.69047619047619 8.48837209302326 7.93478260869565
7.50
7.70
7.90
8.10
8.30
8.50
8.70
Inventory Turnover Ratio
DA
YS
31.3.2008 31.3.2009 31.3.2010
Debtors Turnover Ratio 33.1818181818182 40.5555555555556 45.625
2.50
7.50
12.50
17.50
22.50
27.50
32.50
37.50
42.50
47.50
Debtors Turnover Ratio
DA
YS
31.3.2008 31.3.2009 31.3.2010
Cash Turnover Ratio 8.62014836196989 23.8762334073731 47.1769660114827
2.50
7.50
12.50
17.50
22.50
27.50
32.50
37.50
42.50
47.50
Cash Turnover RatioD
AY
S
Working Capital Management
2004-05 2005-06 2006-07 2007-08 2008-09
-2000
0
2000
4000
6000
8000
10000
12000
TOTAL CURRENT ASSETS ( A )
TOTAL CURRENT LIABILITY & PROVISIONS ( B )
NET WORKING CAPITAL ( A-B )
Trend Of Current Assets, Current Liability And Net Working Capital
Contingent Liabilities
Guarantees 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).
• 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 with a primary
issue of 84,38,79,801 shares by TTSL to the SP. In 2008-09, the company
realized Rs. 60.91 crores on sale of these shares resulting in a profit of Rs. 49.77
crores.
Continue……
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 pending as on 31st March, 2010.
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
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
Supply 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
Planned additional 75 MTPA of steel implies 300MT of additional traffic.
Railways :– Participation by Steel Industry in the creation of
railway infrastructure.
Roads: – Road network to be expanded; national highway
development
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 millionIt is assumed that till 2051, population would be about : 1.4 bn.
Optimistic Case
Medium Growth
Conservative
Fin. Steel Cons.Growth Rate
Consum-ption(mTpa)
Fin. Steel Cons. Growth Rate
Consum-ption (mTpa)
Fin. Steel Cons. GrowthRate
Consum-ption (mTpa)
2005-2020
7.6% 100 6.9% 90 * 5.5% 76
2020-2030
6.5% 188 5.5% 147 4.5% 118
2030-2040
5.0% 305 4.0% 217 3% 158
2040-2050
5.0% 498 4.0% 322 3% 212
GROWTH SCENARIOS
* - Also projected by National Steel Policy
• 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.
Work & Career Details
Performance Data
Personal Details: Age, Education
Tata WorkLevel & MCPA Assessment
Tata Leadership Practices Data
Development PlanIDP
Individual Development Profile
Tata Leadership Practices
Building Effective Teams
Withstanding Pressure
Interpersonal Effectiveness
People Development
Taking Ownership
Functional Excellence
Business Acumen
Dealing with Ambiguity
Strategic Capability
Managing Vision & Purpose
Innovation Management
Customer Focus
Timely Decision Making
Drive for Results
Leadership of PeopleLeadership of BusinessLeadership of Results
Talent Management Schedule
Annual Performance Review & Development need discussions with individual employees
Manager / EmployeeApr - Jun
Talent Review within Business Unit/Function
BU Leadership TeamJun - Jul
Presentation of Talent Review by BU / Functional Leaders to MD/CEO
BU Leadership Team & CEOJul - Aug
Talent Review at Company level
Identification of HPMs and their Development and Movement Plans
CEO & HR HeadAug
Group PPM discussions
Agree on Development & Movement plans
CEO & Head HR and GCC / Peer MD / Group HRSep – Feb
Implement Development & Movement plans•In Company•Cross Company / Group Level
CEO & HR HeadSep - Mar
Implement agreed cross company Movement plans & Group level Development programs
CEO & Head HR and Group HROct – Sep
1 2 3
45
6
7&8
How Does Development take place?
• 10 % Training Courses
• 20 % Interaction with People• Coaching, Mentoring, Experts, Colleagues
• 70 % Challenging Jobs
Tata Leadership Development Programme
TGSLS Level C+
TGELS Level D and C
TGYLS Level F and E
International Consortium Program
Functional Leadership Programs
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•Abundant resources of iron ore
•Low cost and efficient labour force
•Strong managerial capability
•Strongly globalised industry and emerging global competitiveness
•Modern new plants & modernised old plants
•Strong DRI production base
•Regionally dispersed merchant rolling mills
WEAKNESSES•High cost of energy
•Higher duties and taxes
•Infrastructure
•Quality of coking coal
•Labour laws
•Dependence on imports for steel manufacturing equipments & technology
•Slow statutory clearances for development of mines
SWOT ANALYSIS OF TATA STEEL INDUSTRY
OPPORTUNITIES• Huge Infrastructure demand
• Rapid urbanisation
• Increasing demand for consumer durables
• Untapped rural demand
• Increasing interest of foreign steel producers in India
THREATS• Slow growth in infrastructure
development
• Market fluctuations and China’s export possibilities
• Global economic slow down
59
“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
21
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