Tata Steel (BSE: 500470), formerly known as TISCO and Tata Iron and Steel Company Limited, is the world's sixth largest steel company, with an annual crude steel capacity of 28 million tonnes. It is the second largest private sector steel company in India in terms of domestic production. Ranked 315th on Fortune Global 500, it is based in Jamshedpur, Jharkhand, India.[3][4] It is part of Tata Group of companies. Tata Steel is also India's second-largest and second-most profitable company in private sector with consolidated revenues of Rs 1,32,110 crore and net profit of over Rs 12,350 crore during the year ended March 31, 2008. [5][6]
Its main plant is located in Jamshedpur, Jharkhand, with its recent acquisitions, the company has become a multinational with operations in various countries. The Jamshedpur plant contains the DCS supplied by Honeywell.The registered office of Tata Steel is in Mumbai. The company was also recognized as the world's best steel producer by World Steel Dynamics in 2005.[7] The company is listed on Bombay Stock Exchange and National Stock Exchange of India, and employs about 82,700 people (as of 2007). [2]
History
Tata Steel was established by Indian Parsi businessman Jamshetji Nusserwanji Tata in 1907 (he died in 1904, before the project was completed). Tata Steel introduced an 8-hour work day as early as in 1912 when only a 12-hour work day was the legal requirement in Britain. It introduced leave-with-pay in 1920, a practice that became legally binding upon employers in India only in 1945. Similarly, Tata Steel started a Provident Fund for its employees as early as in 1920, which became a law for all employers under the Provident Fund Act only in 1952. Tata Steel's furnaces have never been disrupted on account of a labour strike and this is an enviable record.
Production
Tata Steel annually produces 9 million tonnes of steel in India and 21.4 million tonnes overseas, making it the fifth largest steel producer in the world. It produced a record-breaking 5.0 million tonnes of salable steel in its Jamshedpur works in 2006-07. The company's gross revenue in that financial reporting year was Rs. 20196.24 crores. Its PBT was Rs.6261.65 crores and PAT was Rs.4222.15 crores in the same year.
Capacity Expansion
Tata Steel has set an ambitious target to achieve a capacity of 100 million tonne by 2015. Managing Director Balasubramanian Muthuraman (shortened simply to "B Muthuraman") stated that of the 100 million tonne, Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions. [8][9]
- 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.[8][9]
- Tata Steel has lined up a series of greenfield projects in India and outside which includes [8]
- 6 million tonne plant in Orissa (India)
- 12 million tonne in Jharkhand (India)
- 5 million tonne in Chhattisgarh (India)
- 3-million tonne plant in Iran
- 2.4-million tonne plant in Bangladesh
- 5 million tonne capacity expansion at Jamshedpur (India)
- 4.5 million tonne plant in Vietnam (feasibility studies underway)
Acquisitions
Corus
- On 20 October 2006, Tata Steel announced that it had agreed to pick up a 100% stake in the Anglo-Dutch steel maker Corus at 455 pence per share in an all cash deal, cumulatively valued at GBP 4.3 billion.
- 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.
- On 31 January 2007 Tata Steel won their bid for Corus after offering 608 pence per share, valuing Corus at £6.7 billion; as a result and pending acceptance and completion of the takeover, the joining of the two will create the fifth largest steel company in the world.
Other acquisitions
- 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.[10]
- In 2005, Tata Steel acquired 40% Stake in Millennium Steel based in Thailand for $130 million (approx. Rs 600 crore). [11]
- 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. [12]
Tata Steel celebrates its Centenary Year
Tata Steel completed 100 years of existence on August 26, 2007 following the ideals and philosophy laid down by its Founder, Jamsetji Nusserwanji Tata way back in 1907.
To commemorate the completion of 100 years of operations, a milestone achieved by few, there is a host of events and activities lined up for the citizens of Jamshedpur. In this occasion, Tata Steel has also launched its micro website – www.tatasteel100.com which has many interactive features like "Share Your Story" and "Impressions", where a viewer can share his memories and experiences about the company, "People", a section on leaders of past and present, "Snapshots", focusing on some historic moments of the company, "Advertisements", a section comprising of print and electronic advertisements of the company over these ten decades. The site will also have updates on the Centenary Projects that will be undertaken during the year. There will be an events guide section which will inform viewers of forthcoming events and contain reports on functions that have taken place in the past.
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.[13] In response, Tata cites its programs for environment and resource conservation, including a reduction in greenhouse erosion, 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 Rs 400 crore in 2003-04."[14]
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 Sanctuary, 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 beaches of the Gahirmatha Sanctuary, 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. [15] Company considers these allegations as without any base and the people behind them as low level opportunists.
Corporate rankings
References
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