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ANALYSIS OF BUSINESS RISK OF TATA STEEL

Presented by:
Suverna Upadhyaya Sudhanshu Verma Vivek Dubey Tapas Kumar Pal Srishti Agrawal Sushil Kumar

NATURE OF THE INDUSTRY

Steel industry belongs to the manufacturing sector and TATA Steel is the worlds seventh largest steel manufacturing company

STEEL INDUSTRY
India

is the fifth largest producer of steel in the

world. India Steel Industry has grown by leaps and bounds, especially in recent times with Indian firms buying steel companies overseas. The scope for steel industry is huge and industry estimates indicate that the industry will continue will to grow reasonably in the coming years. The government is planning a massive enhancement of the steel production capacity of India with the modernization of the existing steel plants.

TATA STEEL

TATA STEEL
Tata

Steel , formerly known as TISCO and Tata Iron and Steel Company Limited, is the world's seventh largest steel company, with an annual crude steel capacity of 31 million tones.  It is the largest private sector steel company in India in terms of domestic production. Tata Steel Limited is a diversified steel producer.  It has a global presence in 50 markets and manufacturing operations in 26 countries.

TATA STEEL
The

Company provides steel for different industries, which include construction, automotive, aerospace, consumer goods, materials handling, energy and power, rail, engineering, shipbuilding, packaging, and security and defense.  Tata Steel provides a range of products and infrastructure services to the international railway industry, which include rail section sizes, steel sleeper products and other specialized track components.

TATA STEEL
The

Company's operations relate to manufacture of Steel. Its other business segments consists of tubes, bearings, refractory's, pigments, port operations, town services and investment activities.

PROSPECTS OF STEEL INDUSTRY


Indian

steel industry is closely linked with domestic economic growth. India housing and construction industry is likely to grow in India, which is one of the major steel consuming industries. Growing Indian automobile industry, which depends on steel industry for parts manufacturing, will lead to a strong steel demand in future.

PROSPECTS OF STEEL INDUSTRY


Recent

increase in production capacity and foreign investment in India is pushing the Indian steel Production. Demand is expected to rise in future with economic and industrial growth. The high cost of electricity in India may hamper the steel industrys production level.

MARKET SHARE OF TATA STEEL


FINISHED STEEL (MN.Tn) 24.4 Million tones

3.4 4

12

SAIL

TATA STEEL

JINDAL STEEL

ESSAR STEEL

SHAREHOLDING PATTERN

Sales

Variable cost

Fixed Cost

Profit

2007-2008

21392.39

5510.99

1163.28

7066.36

2008-2009

25945.45

6670.27

1273.58

7315.61

Contributio P/V ratio n

Break Even Point (Rs)


11872.843

Margin Operating of Safety Leverage

2007-2008

1588.14

0.7423

9519.5473

14326.03

2008-2009

19275.18

0.74291

16059.491

9885.9594

18629.84