Tata Steel

Infobox Company
company name = Tata Steel Group
company_
company_type = Public (BSE|500470)
company_slogan = Redefining the power of people
company_vision =
foundation = 2000
industry = Steel
location =
key_people = flagicon|IND Ratan Tata, Chairman
flagicon|IND B Muthuraman, Managing Director
products = Hot and cold rolled coils and sheets
Wire and rods
Construction bars
Pipes
Structurals and forging quality steel
num_employees = 82,700 (2007) [http://www.tribuneindia.com/2008/20080102/biz.htm#6 The Tribune, Chandigarh, India - Business ] ]
revenue = 33 billion [ [http://economictimes.indiatimes.com/Editorials/Indias_manufacturing_story/articleshow/3173702.cms India's manufacturing story- Editorials-Opinion-The Economic Times ] ]
parent = Tata Group
homepage = http://www.tatasteel.com/

Tata Steel, formerly known as TISCO (Tata Iron and Steel Company Limited), is the world's 5th largest and India's largest steel company with an annual crude steel capacity of 28 million tonnes. It is a Fortune Global 500 company with a rank of 315. It is based in Mumbai, India. [ [http://www.tatasteel.com/Company/profile.asp Company Profile] ] [ [http://economictimes.indiatimes.com/News/News_By_Industry/Indl_Goods__Svs/Steel/Tata_Steel_plans_pooling_of_raw_materials/articleshow/3169810.cms Tata Steel plans pooling of raw materials- Steel-Ind'l Goods / Svs-News By Industry-News-The Economic Times ] ] It is part of Tata Group of companies. Tata Steel is also India's second-largest and second-most profitable company in private sector with consolidated revenues of Rs 1,32,110 crore and net profit of over Rs 12,350 crore during the year ended March 31, 2008. [http://www.tatasteel.com/investorrelations/annualresults-07-08.asp Financial Results for the Year ended on 31st March, 2008] ] [ [http://economictimes.indiatimes.com/Corus_takes_Tata_Steel_closer_to_No_1_spot_/articleshow/3170078.cms Corus buy hauls Tata Steel next to Reliance] ]

Its main plant is located in Jamshedpur, Jharkhand, though with its recent acquisitions, the company has become a multinational with operations in various countries. The Jamshedpur plant contains the DCS supplied by Honeywell.The registered office of Tata Steel is in Mumbai. In the year 2000, the company was recognised as the world's lowest-cost producer of steel. The company was also recognized as the world's best steel producer by [http://www.worldsteeldynamics.com/ World Steel Dynamics] in 2005. The company is listed on BSE and NSE; and employs about 82,700 people (as of 2007).

Management

Tata Steel is a limited company registered in India under the Companies Act, 1956.

BOARD OF DIRECTORS(As on 14th April, 2008)

Mr R N Tata (Chairman) Mr James Leng (Non - Executive Deputy Chairman) Mr Nusli N Wadia (Company Director) Mr S M Palia (Company Director) Mr Suresh Krishna (Financial Institutions' Nominee) Mr Ishaat Hussain (Board Member) Dr Jamshed J Irani (Board Member) Mr Subodh Bhargava (Board Member) Mr Jacques Schraven (Non - Executive Independent Director) Dr Anthony Hayward (Non - Executive Independent Director) Mr Philippe Varin (Non - Executive Non independent Director) Mr B Muthuraman (Managing Director) Dr T Mukherjee (Non Executive Director) Mr Andrew Robb (Non Executive Independent Director)

MANAGEMENT(As on 14th April, 2008)

Mr B Muthuraman (Managing Director) Mr H M Nerurkar (Chief Operating Officer) Mr A D Baijal (Vice President & Tata Steel Group Director, Global Mineral Resources) Mr R P Singh (Vice President, Engineering Services & Projects)Mr Koushik Chatterjee (Vice President, Finance & Tata Steel Group CFO) Mr Anand Sen (Vice President, Flat Products & TQM) Mr Abanindra M. Misra (Vice President, Raw Materials & CSI) Mr Varun K Jha (Vice President, Chattisgarh Project) Mr Om Narayan (Vice President, Shared Services) Mr Radhakrishnan Nair (Chief Human Resource Officer) Mr Partha Sengupta (Vice President, Corporate Services) Mr H Jha (Vice President, Safety & Long Products) Mr N K Misra (Vice President & Tata Steel Group Head, M&A) Mr B K Singh (Vice President, Orissa Project) Mr J C Bham (Company Secretary) Mr H C Kharkar (Vice President, MD Office, Mumbai)

History

Tata Steel was established by Indian Parsi businessman Jamshedji Nusserwanji Tata in 1907 (he died in 1904, before the project was completed). Tata Steel introduced an 8-hour work day as early as in 1912 when only a 12-hour work day was the legal requirement in Britain. It introduced leave-with-pay in 1920, a practice that became legally binding upon employers in India only in 1945. Similarly, Tata Steel started a Provident Fund for its employees as early as in 1920, which became a law for all employers under the "Provident Fund Act" only in 1952. Tata Steel's furnaces have never been disrupted on account of a labour strike and this is an enviable record.

Production

Tata Steel annually produces 9 million tonnes of steel in India and 21.4 million tonnes overseas, making it the fifth largest steel producer in the world. It produced a record-breaking 5.0 million tonnes of salable steel in its Jamshedpur works in 2006-07.The company's gross revenue in that financial reporting year was Rs. 20196.24 crores. Its PBT was Rs.6261.65 crores and PAT was Rs.4222.15 crores in the same year.

Capacity Expansion

Tata Steel has set an ambitious target to achieve a capacity of 100 million tonne by 2015. Managing Director B Muthuraman stated that of the 100 million tonne, Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions. [http://www.tata.com/tata_steel/media/20070203.htm Tatas hungry for more] ] http://www.financialexpress.com/old/fe_full_story.php?content_id=162675 Unabated appetite for global growth ]

* Overseas acquisitions have already added up to 21.4 million tonne, which includes Corus production at 18.2 million tonne, Natsteel production at two million tonne and Millennium Steel production at 1.2 million tonne. Tata is looking to add another 29 million tonnes through the acquisition route.

* Tata Steel has lined up a series of greenfield projects in India and outside which includes
# 6 million tonne plant in Orissa (India)
# 12 million tonne in Jharkhand (India)
# 5 million tonne in Chhattisgarh (India)
# 3-million tonne plant in Iran
# 2.4-million tonne plant in Bangladesh
# 5 million tonne capacity expansion at Jamshedpur (India)
# 4.5 million tonne plant in Vietnam (feasibility studies underway)

Acquisitions

=Corus=

* On October 20, 2006, Tata Steel announced that it had agreed to pick up a 100% stake in the Anglo-Dutch steel maker Corus at 455 pence per share in an all cash deal, cumulatively valued at GBP 4.3 billion (USD 8.04 billion).

* On November 19 2006, the Brazilian steel company CSN launched a counter offer for Corus at 475 pence per share, valuing it at $8.4 billion.

* On December 11 2006, Tata preemptively upped the offer to 500 pence, which was within hours trumped by CSN's offer of 515 pence per share, valuing the deal at $ 9.6 Billion. The Corus board promptly recommended both the revised offers to its shareholders.

* On January 31 2007 Tata Steel won their bid for Corus after offering 608 pence per share, valuing Corus at £6.7 bn ($11.3bn); as a result and pending acceptance and completion of the takeover, the joining of the two will create the fifth largest steel company in the world.

Other acquisitions

* In August 2004, Tata Steel entered into definitive agreements with Singapore based NatSteel Ltd to acquire its steel business for Singapore $486.4 million (approximately Rs 1,313 crore) in an all cash transaction. [ [http://www.tata.com/tata_steel/media/20040817.htm Tata Steel acquires NatSteel] ]

* In 2005, Tata Steel acquired 40% Stake in Millennium Steel based in Thailand for $130 million (approx. Rs 600 crore). [ [http://www.thehindubusinessline.com/2005/12/16/stories/2005121603050100.htm Tata Steel to buy Thai co for $130 m] ]

* In 2007 Tata Steel through its wholly owned Singapore subsidiary, NatSteel Asia Pte Ltd acquired controlling stake in two rolling mills: SSE Steel Ltd, Vinausteel Ltd located in Vietnam. [ [http://www.thehindubusinessline.com/2007/03/09/stories/2007030906110300.htm Tata Steel arm buys plants in Vietnam] ]

Tata Steel celebrates its Centenary Year

Tata Steel completed 100 years of existence on August 26, 2007 following the ideals and philosophy laid down by its Founder, Jamsetji Nusserwanji Tata way back in 1907.

To commemorate the completion of 100 years of operations, a milestone achieved by few, there is a host of events and activities lined up for the citizens of Jamshedpur. In this occasion, Tata Steel has also launched its micro website – www.tatasteel100.com which has many interactive features like "Share Your Story" and "Impressions", where a viewer can share his memories and experiences about the company, "People", a section on leaders of past and present, "Snapshots", focusing on some historic moments of the company, "Advertisements", a section comprising of print and electronic advertisements of the company over these ten decades. The site will also have updates on the Centenary Projects that will be undertaken during the year. There will be an events guide section which will inform viewers of forthcoming events and contain reports on functions that have taken place in the past.

Controversies

The company is facing increasing criticism that the drive for growth and profits is completely overshadowing its once famed philanthropy and causing lasting social and environmental damage at various locations. [ [http://www.bhopal.net/blog_pr/archives/2007/02/ratan_tata_agen.html "Tata's Environmental Record", International Campaign for Justice in Bhopal (February 09, 2007)] ] In response, Tata cites its programs for environment and resource conservation, including a reduction in greenhouse erosion, raw materials and water consumption. The company has increased waste re-use and re-cycling, and reclaims land at its captive mines and collieries through forestation. Tata Steel's chief, environment and occupational health, says, "Our capital investment in pollution-abatement solutions was in the vicinity of Rs 400 crore in 2003-04." [ [http://tatamail.com/0_our_commitment/environment/articles/20050121_tatasteel_environmental_consciousness.htm Saloni Meghani, "A tale of two ideas", Tata Steel website] ] .

Dhamra Port

The Dhamra Port, a Joint Venture between Larsen & Toubro and Tata Steel, has come in for criticism from groups such as Greenpeace, Wildlife Protection Society of India and the Orissa Traditional Fishworkers' Union. The port is being built within five kilometres of the Bhitarkanika Sanctuary, a Ramsar wetland of international importance, home to an impressive diversity of mangrove species, saltwater crocodiles and an array of avian species. The port will also be approximately 15 km. from the turtle nesting beaches of the Gahirmatha Sanctuary, and turtles are also found immediately adjoining the port site. Aside from potential impacts on nesting and feeding grounds of the turtles, the mudflats of the port site itself are breeding grounds for horseshoe crabs as well as rare species of reptiles and amphibians. One such species, the amphibian Fejervarya cancrivora, is the first record for the Indian mainland. [ [http://www.greenpeace.org/india/press/reports/greenpeace-biodiversity Greenpeace: Biodiversity assessment of Dhamra Port ] ] Company considers these allegations as without any base and the people behind them as low level opportunists.

Corporate rankings

* With the acquisition of Corus, Tata Steel debuted in the list of private sector companies from India to feature in the 2008 Fortune Global 500 list (at rank 315) of the world's largest corporations [ [http://www.business-standard.com/common/news_article.php?leftnm=1&subLeft=1&chklogin=N&autono=328334&tab=r Tata Steel makes it to Fortune 500 list] ] .

ee also

* Corus

References