Leadership With Trust

Vision
We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship

Mission
‡ To scale the heights of excellence in all that it does ‡ To Function in an atmosphere free from fear ‡ To have full faith in democratic values.

Type Founded Headquarters

Public (BSE: 500470) 1907 Mumbai, Maharashtra, India Ratan Tata (Chairman) B Muthuraman (Managing Director) Steel

Key people

Industry

Products

Hot and cold rolled coils and sheets Wire and rods Construction bars Pipes Structurals and forging quality steel US$32.77 billion (2009) $31.16 billion (2009) 86,548 (2009) Tata Group TataSteel.com

Revenue Total assets Employees Parent Website

INDIAN STEEL INDUSTRY

OVERVIEW 
Fifth largest producer of steel in the world and second largest producer of crude steel  Steel production reached 28.49 million tonne (MT) in April-September 2009.  About 50% of the steel produced in India is exported.  India accounts for over 7% of the total steel produced globally

OVERVIEW 
India accounts for around 5 per cent of the global steel consumption  Huge Iron Ore reserves ± 23 bn. tonnes  Indian Steel Producers are increasingly looking for overseas acquisitions in steel as well as raw materials.  Positive overall growth in the production of crude steel

Indian Potential for Steel
Huge Potential for Demand
High GDP growth rate of 7% 1 billion population Low per capita steel consumption of 33kg (World av. 181 kg)

killed Human Resources

Growth factors for India Government Policy

Abundant Iron Ore
Reserves 23 billion tonnes

Stable currency Easing of regulations Strong Banking & judicial system

Encouraging trade relations with ASEAN and other countries Infrastructure building Exploring new Energy resources

INDIA S CRUDE STEEL PRODUCTION (MT) HISTORIC TRENDS
45 40 35 30 25 20 15 10 5 0 1949 1953 1957 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2008
1.25 mT in 1948 6.6 mT in 1973 16.2 mT in 1991 58 mT in 2008

India gains independence in 1947

Enabled by India s Economic liberalization process

* Year indicates FY

BOOMING STEEL CONSUMING SECTORS
20 15 10
% growth

Construction
Capital Goods Construction Manufacturing

Manufacturing

5 0
00-01 01-02 02-03

Consumer Durables

Capital Goods
03-04 04-05 05-06

-5 -10
Industrial growth led by Manufacturing

Consumer Durables

Capital and Consumer Goods sectors flag bearers of manufacturing sector growth

Other Major Steel Producers
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡
Tisco JSW Essar Steel RINL MECON MOIL MSTC KIOCL NMDC

Top 10 Players
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ 1st; 103.3 mmt; ArcelorMittal 2nd; 37.5 mmt; Nippon Steel 3rd; 35.4 mmt; Baosteel Group 4th; 34.7 mmt; POSCO 5th; 33.3 mmt; Hebei Steel Group 6th; 33.0 mmt; JFE 7th; 27.7 mmt; Wuhan Steel Group 8th; 24.4 mmt; Tata Steel 9th; 23.3 mmt; Jiangsu Shagang Group 10th; 23.2mmt; U.S. Steel

TATA STEEL LIMITED
Tisco -1907 Country's single largest Integrated steel plant Technical collaboration with Nippon Steel & Arcelor ‡ In January 2007 Tata Steel made a successful $12.04 billion offer to buy European steel maker Corus Group PLC. ‡ ‡ ‡ ‡

Benefits From Corus

Portfolio of Products
‡ TSL products, produced by the Company s Indian operations ‡ NatSteel and Tata Steel Thailand operations, and ‡ Corus products, produced in the United Kingdom and The Netherlands.

TSL Products
‡ Finished and semi-finished steel products; ‡ Ferro alloys products; and ‡ Other products and services, including tube products, bearing products, refractory products, pigments, municipal services and investment activities.

Corus Products
‡ Strip products; ‡ Long products; ‡ Distribution and building systems; and ‡ Aluminum.

Finished & Semi-Finished Steel Products

Finished & Semi-Finished Steel Products

Ferro Alloys Segment Products
‡ Produces chrome ore, pyroxenite and manganese ore as well as ferro chrome and ferro manganese. ‡ Ferro chrome and ferro manganese are used by the steel industry to create stainless steel products. ‡ TSL is the leading manufacturer of ferro chrome in India and the leading manufacturer of chrome ore internationally.

Other Services Segment
‡ Production of tubes, bearings and the provision of services. TSL is the largest manufacturer of steel tubes in India. ‡ TSL produces tube products mainly in the commercial tube and precision tube categories. ‡ Commercial tubes are used primarily for piping water, gas and steam for irrigation and other agricultural uses as well as for industrial purposes and are marketed primarily to builders, contractors and distributors.

Other Services Segment
‡ Precision tubes are sold primarily to automotive and bicycle manufacturers, boiler manufacturers, the fertilizer industry and to furniture manufacturers. ‡ TSL s bearings division manufactures ball bearings and taper roller bearings. Major customers of the bearings division include companies in the automotive and engineering industries.

Corus Products

Corus Products

Distribution and Building Systems
‡ Corus sells its finished carbon steel products directly to end users and through its own stockholding and service center businesses. ‡ Stockholders purchase steel from high-volume producers for subsequent resale, and service centers purchase steel stocks for further processing prior to selling to customers. ‡ The stockholding and service center section plays a major role in the distribution of most finished products.

Aluminum
‡ Corus aluminum division now only reflect retained aluminum smelting and metal trading operations. ‡ Corus primary aluminum smelters produce rolling ingots and billets made from alumina (processed bauxite) using an electrolysis process. ‡ Approximately 75% of this division's 272,000 tonnes output is dedicated to the downstream operations that were sold to Aleris International Inc., with the remainder sold to external customers under tolling or direct sales contracts.

Tata Steel Limited Sales & Distribution

Indian Sales
‡ Tata Steel Limited currently sells approximately 91% of its Indian operations production in the Indian market. ‡ In India, Tata Steel Limited sells the majority of its steel products to the construction and infrastructure industries, the automotive industry and the general engineering industry. ‡ Tata Steel Limited s principal products sold to the Indian construction and infrastructure industry are long products. ‡ Tata Steel Limited targets large construction companies involved in infrastructure projects as customers

Indian Distribution and Marketing
‡ Direct supply channels, ‡ 21 stockyards, ‡ 25 consignment agents, ‡ 15 external processing agents and ‡ A network of distributors and retailers operating through 22 sales locations in India.

Indian Distribution and Marketing

Exports from India
‡ Excluding intra-company transfers, in the year ended March 31, 2007, TSL exported from India approximately 403,000 tonnes of steel products, corresponding to 9% of its net sales, with Europe as its most significant export market. ‡ An increased demand in India for steel products starting in 2007 led to a comparatively lower level of exports as a percentage of net sales in the year ended March 31, 2007 (9%) compared to those in the year ended March 31, 2008 (12%).

Asia Pacific Sales outside of India
‡ TSL currently has 14 sales offices in 12 countries in Asia Pacific countries outside of India. ‡ The NatSteel and Tata Steel Thailand acquisitions have strengthened TSL s sales capability in the Asia Pacific region. ‡ For example, NatSteel s sales distribution network includes direct sales to private customers and to wholesalers in the Asia Pacific region. ‡ Tata Steel Thailand sells its products almost entirely within Thailand.

Corus Sales and Distribution
‡ Corus sells its carbon steel products direct to end users and through its own and external stockholding and service center businesses. ‡ Typically, high-volume purchasers buy directly from Corus mills, while low-volume customers buy from stockholders and service centers, including those owned by Corus. ‡ Stockholders purchase steel from steel producers for subsequent resale and service centers purchase steel inventories for further processing prior to selling to customers.

COMPETITIVE ADVANTAGE
‡ Harnessing New and Better Sources of Raw Materials ‡ Innovating to Use Blue Dust ‡ Process Innovation in the Sinter Plant ‡ New Coke Making Technology

‡ Blast Furnace Optimization ‡ Reducing Energy Costs ‡ Addressing Overstaffing ‡ Modernization of Facilities

COMPETITIVE ADVANTAGE
‡ Transformation into a Customer-driven Culture ‡ Challenge of being Internationally Competitive ‡ Accountability Issues ‡ Quality and Cost at the Centre-stage ‡ Creation and Spread of a New Performance Culture

Tata Steel: THE QUEST FOR BUSINESS EXCELLENCE

STRENGTHS
PRODUCTION CAPACITY STRONG DISRTIBUTION NETWORK IMAGE/BRAND

WEAKNESS
Location Distribution cost

SWOT
OPPORTUNITY
LARGE UNTAPPED MARKET GROWING DEMAND

THREATS
CHANGING ECONOMY

Innovative Market Place Initiatives:
For Retail Customers: Innovation with Retail Customers such as Distributors, Retailers, End Customer, Fabricator, Smaller OE¶s should be done by: ‡ ‡ ‡ ‡ ‡ E- Linking the distributors Retail Value Management Brand Management Recommended Consumer Price Retail Identity Programme

Innovative Market Place Initiatives:
For Institutional Customers: Key Accounts are handled using innovations like: ‡ Customer Value Management ‡ Advanced Planning System ‡ Dedicated Service Centers ‡ Tie-up with global majors for high-end products ‡ EVI for the Auto Segment ‡ Long tem Contracting

TATA STEEL STRATEGIES

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