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Tata Steel

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Tata Steel Limited
Company typePublic
BSE: 500470
BSE SENSEX Constituent
IndustrySteel
Founded1907
FounderJamsedji Tata
HeadquartersMumbai, Maharashtra, India[1]
Area served
Worldwide
Key people
Ratan Tata
(Chairman) B Muthuraman
(Vice Chairman)
Hemant M. Nerurkar (MD)
ProductsSteel, flat steel products, long steel products, wire products, plates
RevenueIncrease US$ 27.738 billion (2012)[2]
Decrease US$ 01.125 billion (2012)[2]
Total assetsDecrease US$ 28.904 billion (2012)[2]
Total equityIncrease US$ 08.445 billion (2012)[2]
Number of employees
81,622 (2012)[2]
ParentTata Group
SubsidiariesTata Steel Europe
Websitewww.tatasteel.com

Tata Steel Limited (BSE: 500470) (formerly TISCO and Tata Iron and Steel Company Limited) is an Indian multinational steel-making company headquartered in Mumbai, India and a subsidiary of Tata Group. Its marketing headquarter is located at Tata Centre in Kolkata. It is the twelfth-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 a multinational corporation with operations in numerous countries. It largest plant is located in Jamshedpur, Jharkhand, India. In August 2007 Tata Steel acquired the UK-based steel maker Corus in what was, to date, the largest international acquisition by an Indian company.[5] Tata Steel is listed on Bombay Stock Exchange and National Stock Exchange of India, and employs about 80,000 people.[6][7]

Tata Steel is ranked 401st in the 2012 Fortune Global 500 ranking of the world's biggest corporations.[2] It is the eighth most-valuable Indian brand according to an annual survey conducted by Brand Finance and The Economic Times in 2010.[8][9] The company was recognized as the world's best steel producer by World Steel Dynamics in 2005.[10] It has also been listed as World's most ethical companies by Forbes.[11]

History

TISCo was established by Jamsetji Tata August 26, 1907.[12] [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.[14] The company changed its name TISCO to Tata Steel in year 2005.[15]

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.

Corus acquisition

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

Operations

Tata Steel has a presence in around 50 countries with manufacturing operations in 26 countries. It has manufacturing operations in these locations:[16]

Asia

  • India
  • Malaysia
  • Vietnam
  • Thailand
  • Oman
  • Gujarat

Africa

  • Ivory Coast
  • Mozambique
  • South Africa

Australia

  • Central Queensland

North America

  • Canada

Europe

  • United Kingdom
  • The Netherlands
  • France

Major expansion projects

Tata Steel has set the target of achieving a capacity of 100 million tons by 2015. It is planning for capacity expansion to be balanced roughly 50-50 between greenfield developments and acquisitions.[17][18] 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.[17][18]

Major greenfield expansion projects planned by Tata Steel include:[17]

  1. 6 million tonne plant in Orissa, India: Tata steel is setting up 6 million tonne per annum capacity plant at Kalinganagar.[19]
  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.[19]
  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.[20]
  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)
  7. Tata Steel signed up an EoI to set up a 6 MTPA plant in Haveri district of Karnataka.[21]
  8. Tata Steel to invest $5 billion in setting up a steel factory in Vietnam. Negotiations with the government are in process.[22]

Market sectors

Tata Steel serves customers in these market sectors globally:[23]

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

Major competitors

Major competitors of Tata Steel include ArcelorMittal, Essar Steel, JSW Steel, SAIL and VISA Steel.[24]

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.[25] 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."[26]

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.[27][28]

References

  1. ^ "Contact Information of Tata Steel: the Leading Steel Manufacturer India". Tatasteel.com. Retrieved 2010-09-28.
  2. ^ a b c d e f "2010 Tata Steel Form 10-K". CNN. Retrieved October 7, 2011.
  3. ^ "World Steel Association". Worldsteel.org. Retrieved 2010-09-28.
  4. ^ "Financial Results for the Year ended on 31st March, 2011". Tatasteel.com. Retrieved 2010-10-26.
  5. ^ Vaswani, Karishma (2007-08-16). "Indian firms move to world stage". BBC News.
  6. ^ http://www.tatasteel.com/about-us/company-profile.asp
  7. ^ "Tata Steel Annual Report 2008-09" (PDF). Tatasteel.com. Retrieved 2010-10-26.
  8. ^ "India's top 10 brands". business.rediff.com. Retrieved 26 Oct 2010.
  9. ^ 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 news}}: CS1 maint: multiple names: authors list (link) CS1 maint: numeric names: authors list (link)
  10. ^ "(WSD) is the world's leading steel information service. — WSD". World Steel Dynamics. Retrieved 2010-07-16.
  11. ^ Smith, Jacquelyn (2012-03-15). "The World's Most Ethical Companies". Forbes. Retrieved 19 March 2012.
  12. ^ http://www.fundinguniverse.com/company-histories/Tata-Iron-amp;-Steel-Co-Ltd-company-History.html
  13. ^ History of Tata Steel
  14. ^ Cite error: The named reference fundinguniverse.com was invoked but never defined (see the help page).
  15. ^ http://www.financialexpress.com/old/latest_full_story.php?content_id=91360
  16. ^ http://www.tatasteel.com/global-network/international-operations.asp?Continent=Australia&ContId=cont1#australia
  17. ^ a b c Tatas hungry for more[dead link‍]
  18. ^ a b http://www.financialexpress.com/old/fe_full_story.php?content_id=162675 Unabated appetite for global growth
  19. ^ a b "Tata Steel's Jamshedpur expansion on course: Tata". The Times Of India. 2011-08-03.
  20. ^ "Tata Steel has not dropped Chhattisgarh project". The Hindu. Chennai, India. 2010-04-13.
  21. ^ "Tata signs EoI to set up plant in Haveri district". 08 June 2012. {{cite news}}: Check date values in: |date= (help)
  22. ^ "Tata Group to set up $5 billion steel factory in Vietnam". The Times Of India. Retrieved 20-07-2012. {{cite news}}: Check date values in: |accessdate= (help)
  23. ^ http://www.tatasteel.com/key-market-sectors/index.asp
  24. ^ http://www.moneycontrol.com/competition/tatasteel/comparison/TIS
  25. ^ "Tata's Environmental Record", International Campaign for Justice in Bhopal (February 09, 2007)[dead link‍]
  26. ^ Saloni Meghani, "A tale of two ideas", Tata Steel website[dead link‍]
  27. ^ 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)
  28. ^ "The Dhamra Port website". Dhamraport.com. Retrieved 2010-10-26.

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