TATA Iron & Steel Co Ltd .

1. TATA Iron & Steel Co Ltd.

2. Introduction • Jamsetji Tata Formed Tisco in 1907. • Commenced production in 1911 with a capacity of 0.1mn ton mild steel. • Through various expansions, capacity rose to 2mn ton in 1958. • No capacity expansion till 1991 due to restrictions by the state. • The Indian Tube Co. Ltd., was amalgamated with Tisco in 1983. • In1983 the same year, Tisco acquired ball bearing unit from Metal box. • Tisco commissioned a split location cement plant in FY94 to utilize the blast furnace slag, a waste product. • In 1991, acquired ferro-chrome unit Bamnipal, Ores with 50,000 ferro-chrome capacity from the OMC Alloys Ltd, a state PSU. • Tisco divested its cement division to Lafarge Cement in FY99.

3. Vision • TATA STEEL enters the new millennium with the confidence of a learning organisation, knowledge based and happy organisation. • We will establish ourselves as the supplier of choice by delighting our customers with our services and our products. • In the coming decade, we will become the most cost competitive steel plant and so serve the community and the nation. • Where Tata Steel ventures ....... others will follow.

4. Mission • Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives to strengthen India's industrial base through the effective utilisation of staff and materials. The means envisaged to achieve this are high technology and productivity, consistent with modern management practices. • Tata Steel recognises that while honesty and integrity are the essential ingredients of a strong and stable enterprise, profitability provides the main spark for economic activity. • Overall, the Company seeks to scale the heights of excellence in all that it does in an atmosphere free from fear, and thereby reaffirms its faith in democratic values.

5. Shareholders • A Promoters' Holdings • Promoter Group • Tata Sons Ltd. (principal promotor) 19.86 • Tata Engineering & Locomotive Co Ltd. 4.68 • Others 1.87 • Sub Total 26.40 • B Non Promoters Holdings • Institutional Investors • Unit Trust Of India 6.73 • Mutual Funds 1.69 • Life Insurance Corporation of India 14.07 • The New India Assurance Co Ltd. 1.95 • The Oriental Insurance Co Ltd. 1.73 • National Insurance Co Ltd. 1.46 • The India Fund Inc. 1.10 • Others 5.57 • Sub Total 34.30 • Others • Private Corporate Bodies 5.01 • Indian Public 33.95 • NRIs/ OCBs/ Foreign Financial Institutions 0.34 • Sub Total 39.30 • Grand Total 100.00

6. Board Of Directors • Mr R N Tata (Chairman) • Mr Keshub Mahindra • Mr N A Palkhivala • Mr S A Sabavala • Mr Mantosh Sondhi • Mr Nusli N Wadia • Mr S M Palia • Mr P K Kaul • Mr Suresh Krishna • Mr Kumar Mangalam Birla • Mr Ishaat Hussain • Mr S K Kapur • Dr Jamshed J Irani

7. Line of Business • Steel Works • Bearings • Tubes • Cold Rolling Mills • Ferro Alloys and Minerals • TKM • Rings • ITD • Growthshop • Agrico

8. Steel Works • Plant Location: Jamshedpur • Production Capacity • Finished Steel 3.22 million tons/ annum • Product Mix • Forging Quality Steel • Wire Rods • Hot Rolled Coil/Sheet/Plate • Bars & Structurals

9. Bearings • Deep Grove Ball Bearings • Double Row Self - Aligning Ball Bearings • Magneto Bearings • Clutch Release Bearings • Tapered Roller Bearing

10. Tubes • Standard Tubes • Precision Tubes • Closed Structural • Welded Line Pipes

11. A profit centre of Tata Steel, formed in 1993 • Ferro Alloys and Minerals. • Chrome and Manganese • Iron Ore, • Manganese Ore, • Coal & Coke

12. TKM • TKM in India was set up as a division in 1986/87 as a joint venture company between • Tata Limited, London, • Korf Maritime, Germany • and Maritime Transport Organization, Germany, • As an integrated logistics provider geared to provide multi modal and cost effective transport solutions.

13. ...TKM • Freight Forwarding • Custom Clearance • Chartering

14. Capabilities • Design Cell • Fabrication and Welding • Machining • Gear Manufacturing

15. Since 1925, it has been the leading manufacturer of • Shovels, • Powrahs, • Crowbars, • Kuladies, • Pickaxe • and Hammers.

16. Financial Performance Rs Crores FY’00 FY’01 % Change 3,262 3,210 6,890.87 5,657.73 1,233.14 476.59 54.00 422.59 1. Production (‘000 MT) 2. Sales (‘000 MT) 3. Net Sales / Income 4. Expenditure (4a - 4e) 5. Operating Profit 6. Profit Bef. Tax 7. Taxes 8. Profit After Tax 3,413 3,401 7,759.44 6,057.44 1,702.00 602.44 49.00 553.44 + 4.63 + 5.95 + 12.60 + 7.06 + 38.02 + 26.41 - 9.26 + 30.96

17. Q1 2001-2002 Results Rs mn • Period ended01/0600/06 • No. of months(3)(3) +/- • Sales 16,114.1 17,282.7 (6.8) • Other income 58.9 155.3 (62.1) • Total income 16,173.0 17,438.0 (7.3) • Profit after tax 652.9 1,488.9 (56.1) • Extra-ord.items/PYA (447.6) (474.9) (5.7) • Adjusted PAT 205.3 1,014.0 (79.8) • EPS (Rs) 7.1 16.2

18. Q2 2001-2002 Results Rs mn • Period ended01/0600/06 • No. of months(3)(3) +/- • Sales 19319.9 18095.0 6.8 • Other income 257.2 206.7 24.4 • Total income 19577.1 18301.7 7.0 • Profit after tax 809.9 2499.0 (67.6) • Adjusted PAT 275.1 1153.4 (76.1) • EPS (Rs) 3.0 12.5

19. Strategies For Sustaining Growth

20. Total Productive Maintenance • TPM is an innovative approach to maintenance that • maximizes equipment effectiveness, • eliminates breakdowns, • and promotes autonomous maintenance through day-to-day activities involving the total workforce

21. Performance Ethic • Seeks to redesign current structures and processes to create a high performing organization of motivated and energized managers. • A new organizational structure to nurture growth businesses • Introduce a Performance Management System (PMS)

22. Total Operational Performance

23. WEB ENABLING CUSTOMER ASSISTANCE  Customer and Tata Steel ERP Package (SAP R/3) linked through www.tatasteel.com Available 24 hours a day 7 days a week  Provides real-time linkage and therefore exact information at the time of query  150 domestic customers, comprising 71% of sales turnover using this  30% of the site’s usage is beyond office hours

24. …...Strategies OUT BOUND SUPPLY CHAIN • Outbound supply chain was completely revamped. • New Distribution Network was set up to cater mainly to rebars and GP/GC sheets, enhanced the reach for our products. • Sales of Tata TISCON through this system was almost thrice compared to previous year.

25. …..Strategies BRANDING • Launched two new brands - TATA TISCON for construction rod and TATA SHAKTI GC for Galvanised Corrugated Sheet. • Both these brands are backed up by strong distribution network and created a strong customer pull for these products.

26. …..Strategies • Rural Marketing To increase usage of steel in rural India (e.g. Steel Grain Storage Bins most modern, scientific and economical way to store grains).

27. …Strategies • EXPORTS • Developed new market in China. • Increased exports to the neighboring countries by more than 82% compared to last year. • Enhanced exports of value added products like tinplate by almost 70% over last year.

28. …Strategies • CRM was inaugurated on 24th April 2000 in a world record time of 26 1/2 months. • CRM state-of-the-art mill which is comparable to the best of its kind in the world. • The invested capital is the lowest in the world for a mill of its kind. • The second Galvanizing Line - CGL 2, which shall target the high end market for galvanized CR products to be commissioned in June 2001.

29. …Strategies Environment... • Certification of Steel Works to International Environmental Standard ISO-14001 • Use of oil sludge as fuel in power houses • Use of rejected oil in Blast Furnaces • Investment of RS 12.00 Crores on Pollution Control facilities during the year • Investment of Rs 22.50 Crores on operation and maintenance of pollution control facilities.

30. …Strategies Rightsizing...

31. AWARDS WON BY TATA STEEL JRD QV Award for Business Excellence - First company in Tata Group to win the award Prime Minister’s Trophy for the best performing integrated steel plant for the year 1998-1999 - Tata Steel won this award for the second time. CII-EXIM Business Excellence Award for business excellence in Indian industries. Tata Steel is the 3rd company to win this award.  Corporate Governance Award for 2000 instituted by Government of India  Qimpro Platinum Standard Award for Quality Systems

32. AWARDS WON BY TATA STEEL  Certificate of Approval awarded to Steel Works for conforming to Environmental Management System ISO 14001.  FICCI Award for Family Welfare for 99-2K.  British Safety Council Award for low accident rate in the industry. Mohta Prize for the 8th time (sixth in a row) for the best Value Engineering Project in 2000-2001.  Indian Institute of Materials Management Award for Business Excellence.  Engineering Export Council Award.

33. Subsidiaries • Tata Refractories Limited manufactures refractories which is a critical input for the steel industry. • The Tata Pigments Limited processes the waste pickle liquor generated at the Company's Works for conversion to iron oxide. • Kalimati Investment Company Limited is wholly owned investment company. • Tata Korf Engineering Services Limited is essentially a supplier of technology and constancy services. • Tata Incorporated, which is a 100% subsidiary company based in New York, USA, acts as an agent for the Company in various business transactions. • Stewarts & Lloyds of India Limited contractor for the metallurgical industry. • Tata SSL Limited is the domestic market leader in steel wires.

34. Thank YouBY: Arti Saxena IIC 4