Jump to content

Tata Steel

From Wikipedia, the free encyclopedia

This is an old revision of this page, as edited by Ruby Murray (talk | contribs) at 16:23, 26 December 2013 (Reverted edits by 2.91.93.82 (talk) to last version by 76.120.168.91). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Tata Steel Limited
Company typePrivate
NSE: TATASTEEL
BSE: 500470
BSE SENSEX Constituent
CNX Nifty Constituent
IndustrySteel
FoundedAugust 25, 1907 (117 years ago) (1907-08-25)
FounderJamshedji Tata
HeadquartersMumbai, Maharashtra, India[1]
Area served
Worldwide
Key people
Cyrus Pallonji Mistry
(Chairman)
T. V. Narendran
(Managing Director)
ProductsSteel, flat steel products, long steel products, wire products, plates
RevenueIncrease US$ 24.67 billion (2012)[2]
Decrease US$ 01.48 billion (2012)[2]
Decrease US$ 01.00 billion (2012)[2]
Total assetsIncrease US$ 27.34 billion (2012)[2]
Total equityIncrease US$ 08.19 billion (2012)[2]
Number of employees
80,534 (Mar 2013)[2]
ParentTata Group
SubsidiariesTata Steel Europe
Websitewww.tatasteel.com

Tata Steel Limited (formerly Tata Iron and Steel Company Limited (TISCO)) is an Indian multinational steel-making company headquartered in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group. It was the 12th largest steel producing company in the world in 2012, with an annual crude steel capacity of 23.8 million tonnes, and the largest private-sector steel company in India measured by domestic production.[2][3]

Tata Steel has manufacturing operations in 26 countries, including Australia, China, India, the Netherlands, Singapore, Thailand and the United Kingdom, and employs around 80,500 people.[2] Its largest plant is located in Jamshedpur, Jharkhand. In 2007 Tata Steel acquired the UK-based steel maker Corus which was the largest international acquisition by an Indian company till that date.[4]
[2] It was ranked 471st in the 2013 Fortune Global 500 ranking of the world's biggest corporations.[5] It was the seventh most valuable Indian brand of 2013 as per Brand Finance.[6]
On February 12, 2012 Tata Steel completed 100 years of steel making in India.[7][8]

History

Tata Iron and Steel Company was established by Dorabji Tata on August 25, 1907, as part of his father Jamsetji's Tata Group.[9][10][11] By 1939 it operated the largest steel plant in the British Empire. The company launched a major modernization and expansion program in 1951. Later in 1958, the program was upgraded to 2 Million metric tonnes per annum (MTPA) project.[9] By 1970, the company employed around 40,000 people at Jamshedpur, with a further 20,000 in the neighboring coal mines.[10] In 1971 and 1979, there were unsuccessful attempts to nationalise the company.[10] In 1990, it started expansion plan and established its subsidiary Tata Inc. in New York. The company changed its name from TISCO to Tata Steel in 2005.[12]

Acquisitions

NatSteel in 2004: In August 2004, Tata Steel agreed to acquire the steel making operations of the Singapore based NatSteel for S$486.4 million in cash.[13] NatSteel had ended 2003 with turnover of S$1.4 billion and a profit before tax of S$47 million.[13] The steel businesses of NatSteel would be run by the company through a wholly owned subsidiary called Natsteel Asia Pte Ltd.[13] The acquisition was completed in February 2005.[14][15] At the time of acquisition, NatSteel had a capacity of about 2 million tonnes per annum of finished steel.[15][16]

Millennium Steel in 2005: Tata Steel acquired a majority stake in the Thailand-based steelmaker Millennium Steel for a total cost of $130 million. It paid US$ 73 million to Siam Cement for a 40% stake and offered to pay 1.13 baht per share for another 25% of the shares of other shareholders.[17][18] For the year 2004, Millennium Steel had revenues of US$406 million and a profit after tax of US$29 million.[16] At the time of acquisition, Millennium Steel was the largest steel company in Thailand with a capacity of 1.7 million metric tonnes per annum, producing long products for construction and engineering steel for auto industries.[16] Millennium Steel has now been renamed to Tata Steel Thailand and is headquartered in Bangkok.[19] On March 31, 2013, it held approx. 68% shares in the acquired company.[2]

Corus in 2007: On 20 October 2006, Tata Steel signed a deal with Anglo-Dutch company, Corus to buy 100% stake at £4.3bn ($8.1 billion) at 455 pence per share.[20] On 19 November 2006, the Brazilian steel company Companhia Siderúrgica Nacional (CSN) launched a counter offer for Corus at 475 pence per share, valuing it at £4.5 billion. On 11 December 2006, Tata preemptively upped its offer to 500 pence per share, 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 ($12 billion).
In 2005, Corus employed around 47,300 people worldwide, including 24,000 in the UK.[20] At the time of acquisition, Corus was four times larger than Tata Steel, in terms of annual steel production.Corus was the world's 9th largest producer of Steel, whereas Tata Steel was at 56th position. The acquisition made Tata Steel world's 5th largest producer of Steel.[20]

See also: Tata Corus acquisition

2 Rolling mill companies in Vietnam in 2007: Tata Steel through its wholly owned Singapore subsidiary, NatSteel Asia Pte Ltd, acquired controlling stake in two rolling mill companies located in Vietnam: Structure Steel Engineering Pte Ltd (100% stake) and Vinausteel Ltd (70% stake). The enterprise value for the acquisition was $41 million. With this acquisition, Tata Steel got hold of two rolling mills, a 250k tonnes per year bar/wire rod mill operated by SSE Steel Ltd and a 180k tonnes per year reinforcing bar mill operated by Vinausteel Ltd.[21][22]

Operations

The Tata Centre in Kolkata, India

Tata Steel is headquartered in Mumbai, Maharashtra, India and has its marketing headquarters at the Tata Centre in Kolkata, West Bengal. It has a presence in around 50 countries with manufacturing operations in 26 countries including: India, Malaysia, Vietnam, Thailand, Dubai, Daggaron, Ivory Coast, Mozambique, South Africa, Australia, United Kingdom, The Netherlands, France and Canada.[23]

Tata Steel primarily serves customers in the automotive, construction, consumer goods, engineering, packaging, lifting and excavating, energy and power, aerospace, shipbuilding, rail and defence and security sectors.[24]

Expansion plans

Tata Steel has set a target of achieving an annual production capacity of 100 million tons by 2015; it is planning for capacity expansion to be balanced roughly 50:50 between greenfield developments and acquisitions.[25][26] Overseas acquisitions have already added an additional 21.4 million tonnes of capacity, including Corus (18.2 million tonnes), NatSteel (2 million tonnes) and Millennium Steel (1.2 million tonnes). Tata plans to add another 29 million tonnes of capacity through acquisitions.[25][26]
Major greenfield steel plant expansion projects planned by Tata Steel include:[25]

  • a 6 million tonne per annum capacity plant in Kalinganagar, Odisha, India;[27]
  • an expansion of the capacity of its plant in Jharkhand, India from 6.8 to 10 million tonnes per annum;[27]
  • a 5 million tonne per annum capacity plant in Chhattisgarh, India (Tata Steel signed a memorandum of understanding with the Chhattisgarh government in 2005; the plant is facing strong protest from tribal people);[28]
  • a 3 million tonne per annum capacity plant in Iran;[29][30]
  • a 2.4 million tonne per annum capacity plant in Bangladesh;[31]
  • a 10.5 million tonne per annum capacity plant in Vietnam (feasibility studies are underway); and[32]
  • a 6 million tonne per annum capacity plant in Haveri, Karnataka.[33]

Shareholding

As on 31 March 2013, Tata Group held 31.35% shares in Tata Steel. Over 1 million individual shareholders hold approx. 21% of its shares. Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 14.98% shareholding.[2][34]

Shareholders Shareholding[2]
Promoters: Tata Group companies 31.35%
Insurance Companies 24.09%
Individual shareholders 21.06%
Foreign Institutional Investors 14.36%
GDRs 01.86%
Others 07.28%
Total 100.0%

The equity shares of Tata Steel are listed on the Bombay Stock Exchange,[35] where it is a constituent of the BSE SENSEX index,[36] and the National Stock Exchange of India,[37] where it is a constituent of the S&P CNX Nifty.[38]
Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange[39] and the Luxembourg Stock Exchange.[40][41]

Awards and recognitions

  • In 2013, Tata Steel was ranked India's 7th most admired company by Fortune magazine. It was India's most admired company in 2012.[42][43]
  • In 2013, Tata Steel received the Most Admired Knowledge Enterprises (MAKE) award for 2012 at Global and Asian level. The company has previously been recognised by the Indian MAKE awards on six accounts since its inception in 2005.[44][45]
  • It won the 'Golden Peacock' award in 2009 for its corporate social responsibility (CSR) initiatives.[46][47]
  • In 2008, Tata Steel was awarded Deming Application Prize for excellence in Total Quality Management.[48][49]
  • The company is part of the composite Dow Jones Sustainability World Index (DJSI World) since 2008. DJSI World comprises leaders in sustainability (the top 10% in terms of performance), selected on the basis of long-term economic, environmental and social criteria, from the largest 2500 companies in the world.[48][50]

Major competitors

Tata Steel's major competitors include ArcelorMittal, Essar Steel, JSW Steel, SAIL and VISA Steel.[51][52]

Controversies

  • Job cuts at Teesside in UK: In 2009, the subsidiary company Corus announced mothballing of the blast furnace at Teesside. This would result in approx. 1,700 job cuts.[53] In 2003, Corus had informed that the production at Teesside Cast Products (TCP) was a surplus to its needs. In December 2009, it informed about partial mothballing of the plant.[54] To help the workers, a Corus Response Group was formed which developed a comprehensive package of support. This plan was in place over the past 10 months of announcement. This plan included employment experts on site in January 2010 to put in place support for affected workers, such as individual sessions with workers to update CVs, highlight job opportunities and look at retraining options. The response group will also be working closely with the Teesside Cast Products supply chain to offer similar support.[55][56][57] In February 2011, the TCP plant was bought by Thailand's Sahaviriya Steel Industries from Corus for $469 million. The acquisition was expected to create more than 800 jobs on top of the existing workforce of 700 at the steel plant, which will be brought back into full operation.[54][58]
  • Environment protection at Dhamra Port: The Dhamra Port, a joint venture between Larsen & Toubro and Tata Steel near Dhamra river in Bhadrak district of Odissa, has come in for criticism from groups such as Greenpeace, Wildlife Protection Society of India and the Orissa Traditional Fishworkers' Union for environment protection.[59] The port is being built within five kilometres of the Bhitarkanika National Park, 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 of Gahirmatha Beach, 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.[60][61] The port began commercial production in May 2011.[62] In response, the company website informs that it has been working with International Union for Conservation of Nature (IUCN) for guidance and assistance in the implementation of environmental standards and designing mitigation measures for potential hazards during construction and operation of the Port.[63][64][65]

References

  1. ^ "Contact Information". TataSteel.com. Retrieved 31 August 2013.
  2. ^ a b c d e f g h i j k l "Annual Report 2012-13" (PDF). Tata Steel. Retrieved 30 August 2013.
  3. ^ "Top steel-producing companies 2012". World Steel Association. Retrieved 30 August 2013.
  4. ^ Vaswani, Karishma (16 Aug 2007). "Indian firms move to world stage". BBC News. Retrieved 31 August 2013.
  5. ^ "Global 500: 471 Tata Steel". CNN Money. 22 July 2013. Retrieved 31 August 2013.
  6. ^ "India's top 50 brands". brandirectory.com. Retrieved 19 Aug 2013.
  7. ^ "Tata Steel Jamshedpur blast furnace completes 100 years". The Hindu. 2 December 2011. Retrieved 31 Aug 2013.
  8. ^ "Sustainability Report 2012". Tata Steel India. Retrieved 31 Aug 2013.
  9. ^ a b "Indian Steel Industry History, First Steel Plant in India". tatasteel100.com. Retrieved 31 Aug 2013.
  10. ^ a b c "History of Tata Iron & Steel Co. Ltd". FundingUniverse.com. Retrieved 31 August 2013.
  11. ^ "History of Tata Steel". steelonthenet.com. Retrieved 31 Aug 2013.
  12. ^ "TISCO to change its name to Tata Steel Ltd". Financial Express. 19 May 2005. Retrieved 31 August 2013.
  13. ^ a b c "Tatas make Rs 1,313-cr bid for Singapore's NatSteel". The Hindu. 17 August 2004. Retrieved 31 August 2013.
  14. ^ "Tata Steel completes NatSteel acquisition". The Hindu. 16 February 2005. Retrieved 31 August 2013.
  15. ^ a b "Tata Steel sews up NatSteel buyout". Business Standard. 17 February 2005. Retrieved 31 Aug 2013.
  16. ^ a b c "Tata Steel to acquire Millennium Steel, Thailand". Tata Group. 15 December 2005. Retrieved 31 Aug 2013.
  17. ^ "Tata to Buy Thailand's Millennium Steel for $175 Mln". Bloomberg. 15 December 2012. Retrieved 22 December 2012.
  18. ^ "Tata Steel to buy Thai co for $130 m". The Hindu. 15 December 2012. Retrieved 22 December 2012.
  19. ^ "Our businesses : Tata companies : Tata Steel Thailand". Tata Group. Retrieved 27 Aug 2013.
  20. ^ a b c "Corus accepts £4.3bn Tata offer". BBS News. 20 October 2006. Retrieved 31 Aug 2013.
  21. ^ "Tata Steel arm buys plants in Vietnam". Economic Times. 8 March 2007. Retrieved 31 Aug 2013.
  22. ^ "Tata Steel acquires two steel rolling mills in Vietnam". Tata Group. 8 March 2007. Retrieved 31 Aug 2013.
  23. ^ "Tata Steel Projects and Operations". Tata Steel. Retrieved 31 Aug 2013.
  24. ^ "Key Market Sectors". Tata Steel. Retrieved 31 Aug 2013.
  25. ^ a b c "Tatas hungry for more". Business Standard. 3 February 2007. Retrieved 31 Aug 2013.
  26. ^ a b "Unabated appetite for global growth". Financial Express. 30 April 2007. Retrieved 31 August 2013.
  27. ^ a b "Tata Steel's Jamshedpur expansion on course: Tata". Economic Times. 3 August 2011. Retrieved 31 August 2013.
  28. ^ "Tata Steel has not dropped Chhattisgarh project". The Hindu. 13 April 2010. Retrieved 31 August 2013.
  29. ^ "Tata Steel in $1.1bn Iranian deal". BBC News. 15 June 2005. Retrieved 31 Aug 2013.
  30. ^ "Tata's Iran steel project on hold?". Economic Times. 8 January 2008. Retrieved 31 Aug 2013.
  31. ^ "Tata's Bangladesh plan in cold storage". Indian Express. 15 June 2006. Retrieved 31 Aug 2013.
  32. ^ "Tata Group to set up $5 billion steel factory in Vietnam". The Times of India. Retrieved 31 August 2013.
  33. ^ "Tata signs EoI to set up plant in Haveri district". 8 June 2012. Retrieved 31 August 2013.
  34. ^ "Shareholding Pattern as on 31st March 2013". Tata Steel. Retrieved 31 Aug 2013.
  35. ^ "Tata Steel Ltd". BSEindia.com. Retrieved 31 Aug 2013.
  36. ^ "Scripwise Weightages in S&P BSE SENSEX". BSE India. Retrieved 31 Aug 2013.
  37. ^ "Tata Steel Ltd". NSE India. Retrieved 31 Aug 2013.
  38. ^ "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 31 Aug 2013.
  39. ^ "TTST Tata Steel Limited GDR (each representing 1 ordinary share)". London Stock Exchange. 27 Jul 2009. Retrieved 31 Aug 2013.
  40. ^ "Tata Steel set to raise $600m through GDRs". Times of India. 21 July 2009. Retrieved 31 Aug 2013.
  41. ^ "Stock Exchange Information". Tata Steel. Retrieved 31 Aug 2013.
  42. ^ "TCS replaces Tata Steel as India's most admired company". Times of India. 9 July 2013. Retrieved 31 Aug 2013.
  43. ^ "What is India's most admired company?". India Today. 10 July 2013. Retrieved 31 Aug 2013.
  44. ^ "Tata Steel recognised as one of world's most ethical companies". Economic Times. 7 March 2013. Retrieved 31 Aug 2013.
  45. ^ "Press Releases - Tata Steel conferred with the prestigious Indian MAKE Award". Tata Steel. 7 March 2013. Retrieved 31 Aug 2013.
  46. ^ "Tata Steel wins Golden Peacock award for CSR". Business Standard. 4 March 2009. Retrieved 31 Aug 2013.
  47. ^ "TATA Steel wins Golden Peacock Award for CSR for 2009". SteelGuru.com. 5 March 2009. Retrieved 31 Aug 2013.
  48. ^ a b "Corporate Citizen - Awards". Tata Steel. Retrieved 31 Aug 2013.
  49. ^ "Tata Steel wins Deming Application Prize for 2008". Economic Times. 7 October 2008. Retrieved 31 Aug 2013.
  50. ^ "TCS and Tata Steel figure on Dow Jones Sustainability World Index". Tata Group. 10 December 2008. Retrieved 31 Aug 2013.
  51. ^ "Tata Steel Comparison with Competitors". MoneyControl.com. Retrieved 31 Aug 2013.
  52. ^ "Top Competitors for Tata Steel Limited". Hoovers. Retrieved 31 Aug 2013.
  53. ^ "Corus job cuts 'horrendous' for Teesside". BBC News. 4 December 2009. Retrieved 1 September 2013.
  54. ^ a b "Corus Timeline: How it all began". BBC News. 27 August 2010. Retrieved 1 September 2013.
  55. ^ "Corus Statement On Job Losses In England". informationdaily.co.uk. 4 December 2009. Retrieved 1 September 2013.
  56. ^ "It's time for a new era in Tees Valley". gazettelive.co.uk. 20 April 2010. Retrieved 1 September 2013.
  57. ^ "Corus open to strategic tie-ups to save UK-based TCP Plant". Economic Times. 30 March 2010. Retrieved 1 September 2013.
  58. ^ "Teesside Cast Products saved by Thailand's Sahaviriya Steel Industries". The Telegraph. 24 February 2011. Retrieved 1 September 2013.
  59. ^ "Dhamra port controversy: dialogue fails, TATAs refuse to suspend dredging". GreenPeace. 26 February 2009. Retrieved 1 September 2013.
  60. ^ "Biodiversity assessment of Dhamra Port". Greenpeace. 8 June 2007. Retrieved 1 September 2013.
  61. ^ "The Dhamra Port website". Dhamraport.com. Retrieved 1 September 2013.
  62. ^ "Dhamra Port Commissioned Despite Environmental Concerns". conservationindia.org. 19 December 2011. Retrieved 1 September 2013.
  63. ^ "Environment". dhamraport.com. Retrieved 1 September 2013.
  64. ^ "We are taking elaborate environment protection measures". The Hindu. 6 April 2009. Retrieved 1 September 2013.
  65. ^ "Dhamra Port confers 'Prakruti Sathee' Awards on Environment". orissadiary.com. 5 June 2013. Retrieved 1 September 2013.

Template:Major Indian companies

Retrieved from "https://en.wikipedia.org/w/index.php?title=Tata_Steel&oldid=587762595"