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Tata Steel

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Tata Steel
Company typePublic (BSE: 500470)
IndustrySteel
Founded1907
FounderDorabji Tata
HeadquartersMumbai, Maharashtra, India[1]
Area served
Worldwide
Key people
Ratan Tata (Chairman)
B Muthuraman (Vice Chairman)
HM Nerurkar (MD)
ProductsHot and cold rolled coils and sheets
Wire and rods
Construction bars
Pipes
Structurals and forging quality steel
RevenueDecrease $22.741 billion (2010)[2]
Increase $-423.5 million (2010)[3]
Total assetsIncrease $24.446 billion (2010)[3]
Total equityIncrease $5.082 billion (2010)[3]
Number of employees
34,101 (2010)[4]
ParentTata Group
SubsidiariesTata Steel Europe
WebsiteTataSteel.com

Tata Steel (BSE: 500470) (formerly TISCO and Tata Iron and Steel Company Limited) is a multinational steel company headquartered in Jamshedpur, India and owned by Tata Group. It is the world's seventh-largest steel company, with an annual crude steel capacity of 31 million tonnes, and the largest private-sector steel company in India measured by domestic production.[5] Tata Steel is also India's second-largest and second-most profitable private-sector company, with consolidated revenues of ₹132,110 crore (US$16 billion) and net profit of over ₹12,350 crore (US$1.5 billion) in the year ended March 31, 2008.[6][7] Tata Steel is the eighth most-valuable Indian brand according to an annual survey conducted by Brand Finance and The Economic Times in 2010. [8] It is currently ranked 410th in the Fortune Global 500.[9][10]

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 Jamshedpur plant contains the DCS supplied by Honeywell.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.[11] The company is listed on Bombay Stock Exchange and National Stock Exchange of India, and employs about 82,700 people (as of 2007).[4] 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]

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.[13][14]

  • 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.[13][14]
  1. 6 million tonne plant in Orissa (India)
  2. 6.8 million tonne in Jharkhand (India)(2.9 million tonne will be added by dec, 2011)
  3. 5 million tonne in Chhattisgarh (India)
  4. 3-million tonne plant in Iran
  5. 2.4-million tonne plant in Bangladesh
  6. 5 million tonne capacity expansion at Jamshedpur (India)
  7. 10.5 million tonne plant in Vietnam (feasibility studies underway)

Acquisitions

Corus

Main article: Tata Corus acquisition
  • On 20 October 2006, TISCO signed a deal with Anglo-Dutch company, Corus
  • 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:
  • 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

  • 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.

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.[15] 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 Rs 400 crore in 2003-04."[16]

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 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.[17][18]

References

  1. ^ "Contact Information of Tata Steel: the Leading Steel Manufacturer India". Tatasteel.com. Retrieved 2010-09-28.
  2. ^ "The 20 largest companies in India - Rediff.com Business". Rediff.com. Retrieved 2010-12-10.
  3. ^ a b c "Fortune Global 500 2010 Rankings - Tata Steel". Money.cnn.com. Retrieved 2010-10-26.
  4. ^ a b "Tata Steel Annual Report 2008-09" (PDF). Tatasteel.com. Retrieved 2010-10-26.
  5. ^ "World Steel Association". Worldsteel.org. Retrieved 2010-09-28.
  6. ^ "Financial Results for the Year ended on 31st March, 2008". Tatasteel.com. Retrieved 2010-10-26.
  7. ^ 27 Jun, 2008, 08.20AM IST, Krishna Kant,ET Bureau (2008-06-27). "Corus buy hauls Tata Steel next to Reliance". Economictimes.indiatimes.com. Retrieved 2010-10-26.{{cite web}}: CS1 maint: multiple names: authors list (link) CS1 maint: numeric names: authors list (link)
  8. ^ "India's top 10 brands". business.rediff.com. Retrieved 26 Oct 2010.
  9. ^ "Company Profile". Tatasteel.com. Retrieved 2010-10-26.
  10. ^ 27 Jun, 2008, 01.17AM IST,ET Bureau (2008-06-27). "Tata Steel plans pooling of raw materials- Steel-Ind'l Goods / Svs-News By Industry-News-The Economic Times". Economictimes.indiatimes.com. Retrieved 2010-10-26.{{cite web}}: CS1 maint: multiple names: authors list (link) CS1 maint: numeric names: authors list (link)
  11. ^ "(WSD) is the world's leading steel information service. — WSD". World Steel Dynamics. Retrieved 2010-07-16.
  12. ^ http://news.bbc.co.uk/2/hi/business/6944461.stm
  13. ^ a b c Tatas hungry for more[dead link‍]
  14. ^ a b http://www.financialexpress.com/old/fe_full_story.php?content_id=162675 Unabated appetite for global growth
  15. ^ "Tata's Environmental Record", International Campaign for Justice in Bhopal (February 09, 2007)[dead link‍]
  16. ^ Saloni Meghani, "A tale of two ideas", Tata Steel website[dead link‍]
  17. ^ Publication - June 8, 2007 (2007-06-08). "Biodiversity assessment of Dhamra Port". Greenpeace. Retrieved 2010-10-26.{{cite web}}: CS1 maint: numeric names: authors list (link)
  18. ^ "The Dhamra Port website". Dhamraport.com. Retrieved 2010-10-26.
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