1. 1.

THE REASON FOR PICKING TATA STEEL • It is Asia’s first and India largest steel
company in private sector. • It is India’s 2nd largest and 2nd most profitable company in
private sector. • HR practices
2. 2. Overview Of Tata Steel 1907: Tata Iron and steel company was formed in Mumbai
Plant was settled at Vill: sakchi (Presently known as Jamshedpur) Key People: Ratan
Tata (Chairman) B. Muthuraman (Vice-chairman) H.M. Nerukar (Managing Director) Adress
Line: Major Production: • Hot and cold rolled coils and sheets Tata Steel Limited • Wire and
rods Bombay House, • Construction bars 24, Homi Mody Street, Fort, Mumbai 400 001. •
Pipes Phone : (022) 6665 8282 • Structural and forging quality steel Fax : (022) 6665
7724/6665 7725 E-mail : cosec@tatasteel.com Website : www.tatasteel.com
3. 3. Vision & Mission Statement VISION: We aspire to be the global steel industry benchmark
for Value Creation and Corporate Citizenship MISSION: Consistent with the vision and
values of the founder Jamsedji Tata, Tata Steel strives to strengthen India’s industrial base
through the effective utilization of staff and materials. The means envisaged to achieve this
are high technology and productivity, consistent with modern management practices.
4. 4. Deep Rooted History Foundation Consolidation Expansion 1868-1931 1932-1989 1990
onwards 6
5. 5. 1874 Central India Spinning, Weaving and Manufacturing Company 1902 TAJ MAHAL
PALACE AND TOWERS 1907 TISCO, TATA LIMITED IN LONDON 1910 TATA ELECTRIC
COMPANIES 1911 INDIAN INSTITUE OF SCIENCE 1912 EIGHT HOUR WORKING DAYS
1917 TATA OIL MILLS 7
6. 6. Consolidation • The Tata group ventured into new areas and built on the foundations, in
spite of the restraints imposed by a controlled economy. 8
7. 7. 1932 TATA AIRLINES 1939 TATA CHEMICALS 1945 TATA ENGINEERING (TELCO)
1952 LAKME WAS LAUNCHED LATER SOLD TO HUL 1954 VOLTAS 1962 TATA FINLAY
AND TATA EXPORTS 1968 TCS 9
8. 8. Expansion • The liberalization of the Indian economy unleashed a period of remarkable
growth for the Tata group, in India and worldwide. • Tata ventured in to mergers and
acquisitions in the late 1990s. 10
9. 9. Major Mergers & Acquisitions Source: Goldman, M 2007 11
10. 10. Company Logos 12
11. 11. Major Plant Location (In India) Company’s Steel Works and Tubes Division .. ….…..
….Jamshedpur (Jharkhand) Bearings Division ……………………..……………… Kharagpur
(West Bengal) Ferro Manganese Plant ..................................................................... Joda
(Orissa) Charge Chrome Plant ………….…………………………….. Bamnipal (Orissa) Cold
Rolling Complex ……………………..……….…... Tarapur (Maharashtra) Mines, Collieries &
Quarries ……..…States of Jharkhand, Orissa and Karnataka Wire Division ………..
…………………………………………………. Borivli Tarapur (Maharashtra) Bangalore
(Karnataka) Agrico Plant …………………………………………. Indore (Madhya Pradesh)
12. 12. Going Global 2000-05 2005-06 Green Fields Tata Motors – Daewoo HV Tata Chem –
Brunner Mond Tata Tech - INCAT IHCL - The Pierre Tata Tea - Tetley Tata Tech - Cedis
TACO – Wundsch Weidinger VSNL - Tyco Global Network Tata Chem - IMACID Tata
Interactive – Tertia Edusoft Tata Steel – Millennium Steel Tata Tea- Good Earth Tata Motors
– Hispano Carrocera VSNL - Teleglobe IHCL – Blue Zambia: Bus body building plant: Tata
Zambia South Africa: Ferro Chrome Plant: Tata Steel TCS - Comicrom Second National
Operator: VSNL Tata Steel – NatSteel Uganda: Coffee plant: Tata Coffee Tata Steel – AMCI
Bangladesh: Steel Plant; Tata Steel TCS- Financial Network Services Fertiliser Plant: Tata
Chemical Power: Tata Power
13. 13. INVESTMENTS • NATIONAL • INTERNATIONAL JHARKHAND SOUTH AFRICA
CHHATTISGARH AUSTRALIA ORISSA MOZAMBIQUE - KALINGANAGAR IVORY COAST
-DHAMRA PORT (W.AFRICA) TAMIL NADU OMAN VIETNAM
14. 14. Project And Operation: International The Tata Steel Group’s growth and globalization
strategy is driven by its business expansion while maintaining profitability and mitigating
risks. The Tata Steel Group over the years has focused on enhancing raw material security
and announced major joint ventures in various parts of the globe. Operation In Other
Countries Are…… •Singapore • South Africa • Thailand • Australia • Vietnam • Canada •
Oman • United Kingdom • Ivory Coast • The Netherland • Mozambique
15. 15. Share Holding Pattern 1% Indian Promoter 21% Mutual funds/UTI 33% Financial
institutions/Banks Central Govt./State Govt. 3% Insurance company FII 16% 4% Bodies
corporate 0% 22% 0% Individuals
16. 16. Stock Exchange Information STOCK EXCHANGE SYMBOL ISIN BOMBAY STOCK
500470 (Demat form) INE081A01012 EXCHANGE (BSE) NATIONAL STOCK TATA STEEL
INE081A01012 EXCHANGE (NSE)
17. 17. OTHER ISIN FOR GDRs, FCCBs, CARs.. STOCK EXCHANGES SECURITY ISIN
Luxembourg Stock Exchange GDRs US87656Y1091 London Stock Exchange GDRs
US87656Y4061 Singapore Exchange CARs XS0315783026 Singapore Exchange FCCBs
XS0466930780
18. 18. Bankers Of Tata Steel State Bank of India……………………………………Rs 3500.00
Axis Bank……………………......................................Rs 1000.00 HDFC
Bank……………………………………………Rs 650.00
IDFC……………………………………………………Rs 199.00 Deutsche
Bank………………………………………….Rs 300.00 Canara
Bank……………………………………………..Rs 22.56 Standard Charted
Bank…………………………………Rs 205.00 * Data collected from Annual Report 2009-
10( Rs in Crore)
19. 19. Contingent Liabilities Guarantees  The Company has given guarantees aggregating Rs.
622.37 crores (31.03.2009 : Rs. 930.97 crores) to banks and financial institutions on behalf
of others. As at 31st March, 2010 the contingent liabilities under these guarantees amounted
to Rs. 622.37crores (31.03.2009 : Rs. 930.97 crores).
20. 20. Continue…… • Uncalled liability on partly paid shares and debentures Rs. 0.01 crore
(31.03.2009 : Rs. 0.01 crore). • Bills discounted Rs. 332.03 crores (31.03.2009 : Rs. 497.90
crores). • The Company was given by Tata Sons an option to sell 52,46,590 equity shares in
TTSL (Tata Teleservice Ltd.) to the SP (Strategic Partner-Inc. of Japan, as part of a
secondary sale of 25,31,63,941 equity shares effected along with a primary issue of
84,38,79,801 shares by TTSL to the SP. In 2008-09, the company realized Rs. 60.91 crores
on sale of these shares resulting in a profit of Rs. 49.77 crores.
21. 21. Growth Agenda 1. Domestic Leadership 2. Globally Competitive 3. Internationalisation 4.
Expand Addressable Market
22. 22. Jharkhand LEASE Issue Tata Steel (Tisco) wants the Jharkhand government to amicably
settle the issue of renewal of its lease on the 12,708 acres of land here. The company wants
to sit down with the government and discuss all issues relating to the renewal of the lease.
The Jharkhand government ,department of revenue & land reforms was laying down some
important conditions for renewal of the lease, citing certain violations of the original lease
terms. Among the conditions being talked about is the governments eagerness to realise Rs
5,900 crore from the company for the latters "failure" to realise dues from sub-leasees at the
new rates fixed in 1997. The government has said that there had been 18 violations of the
original lease agreement. "The parties should sit and discuss such things, They cant hold up
renewal of the lease Tiscos lease on the land expired on December 1995. Since then its
renewal has been hanging fire. The Bihar government had leased out around 12,708 acres
of land for 100 years to Tisco on January 1, 1956, providing that the lease will come up for
renewal at the end of 40 years.
23. 23. Maoist Problem Impacts Tata's Jamshedpur Business Expressing concern over the
continuing maoist problem ,the problem was impacting its business in Jamshedpur Train
 services between Kolkata and Jamshedpur were being irregular for the past 50 days and the
night services were suspended. While the company's production was affected due to
irregular train services, suppliers and customers were hesitating to come to Jamshedpur,
and that was affecting business, he said. Suppliers and customers were reluctant to come to
the eastern region and were insisting on having meetings held either in Delhi or Mumbai or
elsewhere, he added. The gap between the eastern region and other parts of the country
was widening, and said that his organisation might not get the required number of work force
if the situation continued. However, he hoped for early resolution of the problem.
24. 24. Vietnam to help solve Issues of TATA Vietnam Prime Minister Nguyen Tan Dung
assured the visiting Indian Finance Minister Pranab Mukherjee that issues related to land
acquisition for the proposed $5 billion integrated steel plant by Tata Steel would be resolved
soon. Mukherjee during his meeting with the Vietnamese prime minister said that the plant
has the potential to become a symbol of strategic partnership between the two countries. He
urged Vietnam to ensure that a level playing field is provided to Tata Steel and that there is
no discrimination against Indian investment. There were reports that the land allotted to Tata
Steel for its planned 4.5-million-tonne plant in Ha Tinh province was in danger of being given
away to Taiwanese or Chinese companies and that local authorities were creating
hindrances in allotment of an alternative site. Nguyen told Mukherjee that he has already
asked concerned officials to resolve the matter at the earliest.
25. 25. Tata Steel in Europe The European operations of Tata Steel (formerly known as Corus)
comprise Europe's second largest steel producer. With main steelmaking operations in the
UK and the Netherlands, the company supplies steel and related services to the
construction, automotive, packaging, material handling and other demanding markets
worldwide . The combined group has an aggregate crude steel capacity of more than 28
million tonnes and approximately 80,000 employees across four continents.
26. 26. Tata Steel and Rio Tinto sign agreement on HIsarna Tata Steel and Rio Tinto have
signed a licensing agreement to further support technological and commercial development
of the environmentally friendly direct iron smelting process called HIsarna. The agreement
covers how both parties will work together, sharing their existing knowledge of the two
technologies that are combined in the new process. It also covers how benefits from future
successful marketing of the technology will be made available to both parties, as well as to
the members of Ulcos, the consortium of European steelmakers in whose name the project
is being carried out. SECURING COAL SUPPLIES Tata already has a stake in Riversdale's
Benga coking coal project in Mozambique with an agreement to buy supply from the mine.
Under Australian rules, Tata and CSN can continue to increase their stakes in Riversdale by
3 percent every six months without being forced to make a full takeover offer. The two
companies would probably like to see Rio Tinto, with deeper pockets and more technological
skills than Riversdale, developing Riversdale's Mozambique mines and infrastructure,
analysts said. At the same time the steelmakers might want the coal mine to remain out of
Rio's hands, because they do not want coking coal supplies to come under as tight a control
as iron ore, where supplies are largely controlled by three miners, including Rio.
27. 27. ACQUISITIONS AND MERGERS OF TATA With the takeover of two British automobile
marquees Jaguar and Land Rover, the $28.8 billion Tata group, with 98 companies in its
fold, will add another prominent entry to its growing roster of global acquisitions. Barely a
year ago, it paid over $12 billion to acquire Anglo-Dutch steel maker Corus, in what remains
the largest buy-out deal overseas by an Indian company till date. The holding arm of the
group that has 27 listed companies - maintain, the appetite for such mega mergers and
acquisitions is only growing with each deal. Tata Steel has made three major acquisitions
worth some $13 billion in the past few years.
28. 28. Tata Steel signs definitive agreement with SSI for sale of TCP Tata Steel UK Limited
(Tata Steel) has signed a definitive sale agreement to sell certain assets of Teesside Cast
Products (TCP) to Sahaviriya Steel Industries UK Limited (SSI), a subsidiary of Thailand’s
 largest steel producer, in a deal valuing the business at $469 million. The agreement is the
most significant achievement in the 22 months since Tata Steel began an exhaustive search
for an alternative future for TCP, after the illegal withdrawal by a consortium of offtakers from
a 10-year supply agreement. Both parties have worked hard since August to reach a
successful outcome on what has been a complex negotiation. This is a significant inward
investment by SSI which will help to sustain the 700 jobs at the plant and create new ones at
the site and the wider local economy. The deal will also result in Tata Steel and SSI entering
into a joint venture to operate Redcar Wharf (TCP’s bulk terminal), giving Tata Steel the
flexibility to use Teesside to serve its other steelmaking operations, while also meeting SSI’s
requirements on Teesside.
29. 29. Tata Steel The company, which celebrated its centenary in August last year, wants to
boost its annual output of 8.7 million tonnes to 15 million tonnes by 2010, and take it
upwards to 30 million tonnes by 2030. More stunning moves on the mergers and acquisition
front can definitely be expected In January 2007, the group pulled off India's biggest ever
takeover of an overseas company to buy Anglo-Dutch steel-maker Corus in a $12 billion deal
that made it the combined entity the world's fifth largest producer of the commodity. This
came just over a year after it acquired Singapore's NatSteel, which also has a presence in
Thailand, China, Malaysia, Vietnam, the Philippines and Australia followed by the acquisition
of Thailand's Millennium Steel for a $421 million.
30. 30. Tata Steel greenfield project in Iran on hold? Tata Steel said that it was working on
“some issues” pertaining to the undertaking. The reports attributed the decision to put the
project on hold to political uncertainty and larger geopolitical concerns. Earlier, Essar Group
had dropped plans to develop an oil refinery in the Persian Gulf nation. Tata Steel has put its
3 million tonne a year greenfield steel project in Iran on hold because of political uncertainty.
The decision has been made for reasons not related to business, but larger geopolitical
concerns. Activities on the Iran project have been at a complete standstill for two months.
Tata Steel signed a memorandum of understanding (MoU) with the Persian Gulf Special
Economic Zone last year for land and other infrastructural facilities in the SEZ at Bandar
Abbas, the Metal Bulletin said. Under the MoU, Tata had agreed to set up a direct reduced
iron-based steel plant with an annual capacity of 3 million tonnes and this could be scaled
upto 5 MT. The Iranian project was supposed to be owned by a Tata Steel subsidiary, with
the entire production targetting the export market.
31. 31. Govt must act together on WTO issues. Indian steel producers, consumers and the
government should report "aberrant behaviour" to seek redressal of trade-related issues
within the ambit of the WTO system. Concerted efforts of the state, producers and
consumers are needed to tackle trade-related problems. Sustained vigilance and
preparedness on the part of all the interested parties and a proactive administration hold the
key to the solutions of such threats. To advocate and enforce the rights of the affected
parties, full use of WTO forum would be made. In the domestic market, the steel industry
faced increased competition from cheap imports from countries with highly depreciated
currencies... resulting in intense pressure on domestic prices. The problem has been further
accentuated by large-scale replacement of prime imports by low-priced imports of non-
standard defectives posing a grave threat to producers and users of steel alike.
32. 32. Conclusion • After conducting an in depth study of one of India’s most admired
companies, we find that the company has many strengths and opportunities which it may
capitalize on to truly become a world leader in steel making along with setting high standards
for corporate citizenship and social responsibility towards a long term sustainable growth. 35
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