ECONOMICS PROJECTON TATA STEEL
GROUP MEMBERSPranay jain
Prakash PurohitPrajakta Wadagbalkar
Pooja BehlPrachi Bajoria
• Largest private sector steel co. in India
• Ranked 258th on Fortune Global 500
• 2nd Largest co. in pvt sector
History
• Incorporated in 1907 • 1907-1980 • 1980 onwards 4 phased modernization
programme• 2004 :- The Indian Steel Wire Products Co.• 2007:- Acquired Corus• 2008 :- First Retail Outlet• 2009-10:- Hooghly Met Coke & Power Co Ltd
Vision
We make difference through:• Our People• Our Offer• Our Innovative Approach• Our Conduct
Mission
• Consistent with Vision & Values• Honesty & Integrity• Achieve Excellence
Mission
• Consistent with Vision & Values• Honesty & Integrity• Achieve Excellence
TOP MANAGEMENT• Name Designation• H M Nerurkar Managing Director• A Anjeneyan Company Secretary• Ratan N Tata Chairman• B Muthuraman Addi. Director & VC (Non Execu• Nusli N Wadia Director • S M Palia Director • Suresh Krishna Director • Ishaat Hussain Director • Jamshed J Irani Director • Subodh Bhargava Director • Jacobus Schraven Director • Andrew Robb Director
CONTINUED
• Banker• State Bank of India• • Auditor• Deloitte Haskins & Sells
COLLABORATOR
• • Collaborator’s Name Country Nature
• SMS Demag Germany Electrolytic Cleaning line
• Nachi Fujikoshi Japan Technical• Nippon Steel Japan Technical• Saarberg Interplan Germany Technical• Thyssen Stahl A G Germany Technical• Posdata Company Ltd Korea Technical• MIT U.S. Technical
Shareholding Pattern
promotersFIIsInstitutional Inventorspublicothers
32.48%
16.97%26.21%
20.92%
3.42%
CORPORATE SOCIAL RESPONSIBILITIES
• Focusing on the environment, people and society.
• Enhance the Earth’s Resource
• Create sustainable world for future generations
HEALTH PROJECTS
• Mother & Child Health: Maternal, neonatal health, immunization & family
planning
• HIV/AIDS initiatives & Sexual Health: Nutritional and educational support to 250000 people
in 5 years• Lifeline Express: • The world’s first hospital on rails offers on the spot
diagnostic• Health screening of the employees and their families
WATER PROJECT
• Drinking water:• To ensure portable drinking water supply to
every household in the Company’s operational areas.
• Civic Amenities:• the Jamshedpur Utilities and Services
Company (JUSCO) provides comprehensive urban infrastructure services.
HUMAN CAPITAL
• Building Entrepreneurs:• To improve the economies of those areas of the UK
most affected by changes in the steel industry.• Building Beyond Borders:• The underprivileged elderly and to less fortunate
children and youth in the area of education.• Grow smart with TATA Steel:• Learning &self development for students (rural areas)• Vocational training for adults
Various sectors
• Education and scholarship: • Agriculture Program• Wasteland Development• Cultural and Heritage• Sports• Disaster Relief Management
Products• TATA AGRICO – Hand Tools & Implements
Product Range - Hoes, Sickles, Crowbars, Shovels, Pick Axes, Hammers, Garden Tools.Applications – Agricultural sector, Horticulture Industry, Maintenance of Roads, Dams, Railway- Tracks, Collieries etc. in India and abroad.
• TATA SHAKTEE – Galvanised Corrugated Sheets Applications - The galvanised sheets are widely used in automobiles applications. (mechanical engineering)
Products contd…
• TATA BearingsAchievement - Won the TPM Award (2004) from Japan Institute of Plant Maintenance, Tokyo.Application - Supplied to UK’s Major Road Networks
• TATA Wiron – Steel WiresComprise 30% market share
Application - cater to the automobiles, infrastructure development, power industry and general engineering.Used for construction Delhi Metro, even in metro trains
• TATA TUBES – PipesPromotes three lines of businesses:
(i) The Standard Tubes Business under the Tata Pipes brand,(ii) The Precision Tubes Business and (iii) The Steel Hollow Sections Business under Tata Structura brand.
• TATA TISCON – Thermo Mechanically Treated RebarsAchievement: 1st rebar to be awarded the ‘Superbrand’ status.Applications: both residential and project applications.
Products …contd
Raw Material AnalysisWith Respect to Cost per unit of finished product
Coal 16%
Coke15%
Ferro Mangenese52%
Iron Ore 1%
Lime-stone
& Dolomi
te3%
Sul-phur & Mate-rials14%
Finished Product AnalysisWith respect to %age of turnover
Steel Saleable73%
Tubes Welded-
Steel5%
Steel & Scrap
6%
Power & Water cables
3%Others
10%
Ferro Chrome3%
Equity Dividend History
2010 2009 2008 2007 20060%
20000%
40000%
60000%
80000%
100000%
120000%
80% 160% 160% 155% 130%
709
1168.95 1168.95
943.1
719.51
1.26 7.77 2.31 3.62 2.42
Dividend % Dividend Amount Div. Yield %
Bonus Share History
2004 1987 19820
20
40
60
80
100
120
1.2 2.5 2.5
46.02
105.92
5.13
Ratio EPS-Unit Curr
Balance Sheet – Sources Of FundsTotal Share Holders’ Funds
2010 2009 2008 2007 20060
5000
10000
15000
20000
25000
30000
35000
4000036961.94
30176.527306.38
14096.16 9755.29999999998
Rs. in Crores
Balance Sheet – Sources Of Funds Total Debt
2010 2009 2008 2007 20060
5000
10000
15000
20000
25000
3000025239.2 26946.18
18021.69
9645.33
2516.15
Rs. in Crores
Balance Sheet – Application Of Funds Investments
2010 2009 2008 2007 20060
50001000015000200002500030000350004000045000
44979.67 42371.78
4103.196106.18
4096.96
Rs. in Crores
Current AssetInventory
2010 2009 2008 2007 20060
500
1000
1500
2000
2500
3000
3500 3077.753489.47
2604.982332.98
2174.75
Rs. in Crores
Current AssetCash & Bank Balance
2010 2009 2008 2007 20060
1000
2000
3000
4000
5000
6000
7000
8000
3234.14
1590.6
465.04
7681.35
288.39
Rs. in Crores
Total Current Liabilities
2010 2009 2008 2007 20060
2000
4000
6000
8000
10000
12000 10163.58 9990.41
7834.436560.73
5197.43
Rs. in Crores
Income Statement – P& LIncome: Net Sales Turnover
2010 2009 2008 2007 20060
5000
10000
15000
20000
25000
24940.85 24348.52
19652.5317458.39
15135.42
Rs. in Crores
Income Statement Expenditure: Raw Materials
2010 2009 2008 2007 20060
1000
2000
3000
4000
5000
6000
70005663.82
6068.78
3743.14 3572.063024.38
Rs. in Crores
2010 2009 2008 2007 20060
500
1000
1500
2000
2500
3000
3500
4000 3509.373195.88
2611.22500
2090.67
Rs. in Crores
Income Statement Expenditure: Manufacturing
2010 2009 2008 2007 20060
500
1000
1500
2000
25002354.08 2295.41
1803.871598.96
1397.39
Rs. in Crores
Income Statement Expenditure: Employee Cost
2010 2009 2008 2007 20060
500
1000
1500
2000
25002044.45
1831.481601.78
1491.571373.71
Rs. in Crores
Income Statement Expenditure: Selling & Admin. Expenses
2010 2009 2008 2007 20060
200
400
600
800
1000
1200
1400
1383.44
1222.481048.11 1027.84
897.57
Rs. in Crores
Income Statement Expenditure: Power & Fuel Cost
Expenditure Analysis of 2010
Raw Materials35%
Power & Fuel9%
Employee Cost14%
Manufacturing Expense
22%
Selling & Admin
13%
Others8%
2010 2009 2008 2007 20060
1000
2000
3000
4000
5000
60005046.8
5201.74
4687.034222.15
3506.38
Income Statement Net Profit after Tax (NPAT)
Rs. in Crores
Ratio AnalysisDebit Equity Ratio
2010 2009 2008 2007 20060
0.5
1
1.5
2
2.5 2.16
1.781.57
1.11
0.380000000000001
2010 2009 2008 2007 20060
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.81.46
1.62 1.64
1.38
0.79
Ratio AnalysisCurrent Ratio
2010 2009 2008 2007 20060
0.20.40.60.8
11.21.41.61.8
2
0.92
1.31
1.99
1.48 1.44
Ratio AnalysisFixed Assets to Turnover Ratio
Expressed as % age
2010 2009 2008 2007 20060123456789
10
5.17
6.71
9.95
8.24 8.46
Ratio AnalysisInventory to Turnover Ratio
Expressed as % age
2010 2009 2008 2007 200602468
101214161820
8.459.45
13.16
18.89
10.96
Expressed as % age
Ratio AnalysisDebtors to Turnover Ratio
EPS
2010 2009 2008 2007 20060
10
20
30
40
50
60
70
54.97
66.7561.06
69.95
61.51
Expressed as Rs.
Expansion Projects – Striding into the future Now
• Ambitious target to achieve a production capacity of 100 million tonnes by 2015.
• Of the 100 million tonnes, Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions
•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
Greenfield Expansion Projects
Brownfield Project Expansions:• Plans to increase its crude steel capacity from 6.8 million tonnes per annum
to 9.7 million tonnes per annum (Jamshedpur)• Entered into a MOU with Nippon Steel Corporation (NSC), Japan for setting
up a Continuous Processing Line at Jamshedpur, India with 0.6 mtpa capacity• Purpose: Aims to capture the growing demand for high-grade automotive
cold-rolled flat products in India
Expansion Series of Integrated Steel plants in India & Overseas:1. 6 mtpa plant in Orissa 2. 12 mtpa plant in Jharkhand 3. 5 mtpa plant in Chhattisgarh 4. 3 mtpa plant in Iran5. 2.4 mtpa plant Bangladesh6. 4.5 mtpa plant in Vietnam (feasibility studies underway)
Expansion Projects
For Raw Materials Security: Backward Integration
1. Coking coal manufacturing facility in West Bengal
2. Joint venture agreement with Riversdale Mining for Mozambique coal project & Mining of iron ore deposits
3. Entered into a Joint Venture Agreement with the Al Bahja Group for the development of the Limestone deposits in Oman
4. Agreement with Steel Authority of India Ltd (SAIL) to establish a 50:50 joint venture for coal mining in India
5. Acquired stake in Australian coal mines
6. Joint Venture with a Canadian co., New Millennium Ltd. To develop iron ore deposits
7. Establish a 74:26 joint venture company for acquiring, development and operation of mines and processing of other essential minerals and metals like manganese, silica, sulphur and zinc.
Expansion Projects
For Power Security of its Manufacturing facilities:
1) It is setting up a coal based power plant of 2 X 67.5 MW capacity in Orissa.
2) The construction of a warehousing shed and a building for a power receiving sub-station has started in the Met Coke Hooghly facility
Dhamra PortIn the process of setting up a Joint Venture Company with Larsen and Toubro Ltd for developing an all weather modern deep water port in Orissa on the east coast – for easy transport of raw materials and mineral from Australia & South east Asian sub continent and supplying finished steel products its major markets via sea
Expansion Projects
• Thank you
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