tata steel final ppt

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

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