Tata Steel

Type	Public
Traded as	BSE: 500470 BSE SENSEX Constituent
Industry	Steel
Founded	1907
Founder(s)	Dorabji Tata
Headquarters	Mumbai, Maharashtra, India[1]
Area served	Worldwide
Key people	B Muthuraman (Vice Chairman) Hermant M. Nerurkar (MD)
Products	Steel, flat steel products, long steel products, wire products, plates
Revenue	US$ 26.06 billion (2011)[2]
Profit	US$ 1.97 billion (2011)[2]
Total assets	US$ 30.38 billion (2011)[2]
Total equity	US$ 7.97 billion (2011)[2]
Employees	81,251 (2011)[2]
Parent	Tata Group
Subsidiaries	Tata Steel Europe
Website	www.tatasteel.com

Tata Steel Limited (BSE: 500470) (formerly TISCO and Tata Iron and Steel Company Limited) is a multinational steel company headquartered in Mumbai, India and subsidiary of Tata Group. It is the tenth-largest steel producing company in the world, with an annual crude steel capacity of 23.5 million tonnes, and the largest private-sector steel company in India measured by domestic production.^[3][4] Tata Steel is ranked #370 globally in Fortune Global 500 list in 2011.^[5] It is the eighth most-valuable Indian brand according to an annual survey conducted by Brand Finance and The Economic Times in 2010.^[6][7] It has also been listed as World's most ethical companies by Forbes.^[8]

Tata Steel's largest plant is located in Jamshedpur, Jharkhand, with its recent acquisitions, the company has become a multinational with operations in various countries. The registered office of Tata Steel is in Mumbai. The company was also recognized as the world's best steel producer by World Steel Dynamics in 2005.^[9] The company is listed on Bombay Stock Exchange and National Stock Exchange of India, and employs about 80,000 people.^[10][11] In August 2007 Tata Steel won the bid to acquire the UK-based steel maker Corus in what was, to date, the largest international acquisition by an Indian company. It made the Tata Group the world's fifth largest steel maker, and catapulted them to the global league.^[12]

History[link]

TISCo was established by Jamsetji Tata in year 1907.^[13] In year 1939, it had largest steel plant in the British empire. A modernization and expansion program was launched in year 1951. Later, the program was upgraded to 2 MTPA project. In 1990, it started expansion plan and established its subsidiary Tata Inc. in New York.^[13] The company changed its name TISCO to Tata Steel in year 2005.^[14]

Global Network[link]

Tata steel has presence in 50 countries with manufacturing operations in 26 countries. It has manufacturing operations in these locations:^[15]

Asia[link]

• India
• Malaysia
• Vietnam
• Thailand
• Oman

All through Acquisitions route.

Africa[link]

• Ivory Coast
• Mozambique
• South Africa

Australia[link]

• Central Queensland

North America[link]

• Canada

Europe[link]

• United Kingdom
• The Netherlands
• France

Capacity Expansion[link]

Acquisitions[link]

Corus[link]

• On 20 October 2006, TISCO signed a deal with Anglo-Dutch company, Corus
• On 19 November 2006, the Brazilian steel company Companhia Siderúrgica Nacional (CSN) launched a counter offer for Corus at 475 pence per share, valuing it at £4.5billion.
• On 11 December 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 £4.9 billion. The Corus board promptly recommended both the revised offers to its shareholders.

Wikinews has related news: Steel Industry: Tata buys Corus

• On 31 January 2007 Tata Steel won their bid for Corus after offering 608 pence per share, valuing Corus at £6.7 billion.

Other acquisitions[link]

• 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.
• In 2005, Tata Steel acquired 40% Stake in Millennium Steel in Thailand for $130 million (approx. Rs 600 crore).
• 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.

Greenfield and Brownfield Projects[link]

Tata Steel has set an ambitious target to achieve a capacity of 100 million tons 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.^[16][17]

• 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.^[16][17]
• Tata Steel has lined up a series of greenfield projects in India and outside which includes^[16]

1. 6 million tonne plant in Orissa, India: Tata steel is setting up 6 million tonne per annum capacity plant at Kalinganagar.^[18]
2. 10 million tonne in Jharkhand, India: The capacity of Jamshedpur steel plant has already been increased to 6.8 MTPA. It is expected that its capacity will increase by 10 MPTA in near future.^[18]
3. 5 million tonne in Chhattisgarh, India:Tata steel signed MOU with Chhattisgarh government in 2005 for setting up 5 MTPA plant. But, it is facing strong protest from tribal people.^[19]
4. 3-million tonne plant in Iran
5. 2.4-million tonne plant in Bangladesh
6. 10.5 million tonne plant in Vietnam (feasibility studies underway)

Key Market Sectors[link]

Tata steel serves customers in these market sectors globally:^[20]

• Automotive
• Construction
• Consumer goods
• Engineering
• Packaging
• Lifting and Excavation
• Energy and Power
• Aerospace
• Shipbuilding
• Rail
• Defence and Security

Competitors[link]

Competitors of Tata Steel are ArcelorMittal, Essar steel, JSW steel, SAIL, VISA steel etc.^[21]

Controversies[link]

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.^[22] In response, Tata cites its programs for environment and resource conservation, including reduction in greenhouse emission, 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 4 billion in 2003-04."^[23]

Dhamra Port[link]

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 National Park, 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 of Gahirmatha Beach, 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.^[24][25]

Finance[link]

Due to Europe crisis cuts demand, Net Income of Tata Steel including Tata Steel Europe in Q4 ended at March 31, 2012 tumbles by 90 percent from 41.8 billion rupees a year earlier to 4.33 billion rupees ($79 million).^[26]

References[link]

External links[link]

• Official website
• Annual Reports

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