From the acquisition of Corus for $13 billion (the largest acquisition by an Indian company) and making Tata Steel the world?s 6th largest steel conglomerate, to organising a nationwide centenary interschool quiz competition, Tata Steel has done it all. The year 2007-08 marks the 100 years of existence of India?s oldest largest-integrated private sector steel company.
Established in 1907, Tata Steel today is among the lowest cost producers of steel in the world.
With its vision set at expanding its operations and looking at strategic global footprints, Tata Steel plans to grow and globalise through organic and inorganic routes.
The company has made many international associations this year, where the company has signed a MoU with Vietnam Steel Corporation for a steel complex to be set up in Ha Tinh province, with an estimated capacity of 4.5 MT per year.
The company had also signed agreements with Australian?Riversdale Mining Ltd to establish a special purpose joint venture vehicle to develop a hard coking and thermal coal project at key coal exploration tenements held by Riversdale in Mozambique and a JV with SODEMI (state owned company for mineral development)) for the development of Mount Nimba Iron ore deposits in Ivory Coast (West Africa). It has also entered a JV in the Sultanate of Oman with Al Bahja Group to develop the limestone deposits there.
Going forward, the company plans to invest in growing capacities and setting up new manufacturing facilities. It crossed the 5 million-tonne mark for the first time at the Jamshedpur plant, making it the only plant in India to have produced more than 5 million tonne of steel, which the company now aims to double it to 10 MT per annum by 2010.
Tata Steel has envisaged three greenfield projects totalling to a capacity addition of 23 MT to its current capacity in the resource-rich Indian states of Orissa, Chhattisgarh, and Jharkhand. It is a partner in the creation of a deep-sea port in coastal Orissa and is also exploring opportunities in the titanium dioxide business in Tamil Nadu, India. The company also signed a MoU with the Tamil Nadu government for its Titanium Oxide Project in the Tuticorin region of the state, as well as entered in a JV with SAIL to develop coking coal deposits within the country.
Tata Steel posted a 0.45% marginal rise in net profit at Rs 1,068.58 crore for the third quarter ended December 31, 2007, as compared to Rs 1,063.75 crore in the same period a year ago. The total income grew 10.3% at Rs 5,040.95 crore for the quarter under review, as against Rs 4,568.20 crore last year.
Consolidated net profit (Tata Steel + Corus) stood at Rs 1,416 crore for the quarter ended December 31, 2007, as against Rs 1,055 crore in the corresponding period of 2006 including the profit of Anglo-Dutch steel maker Corus. Turnover of Tata Steel, including its Indian, Thailand, and Singapore operations, rose by Rs 2,157 crore to Rs 23,867 crore.
Financing of the Corus transaction included syndication of the ?3,670 million, CARS issue of $875 million, rights issue of $2,200 million, and bridge loan of $2.90 billion that has been repaid.
Going ahead, Tata Steel plans to hold a strong position in the Indian market with continued investments, as well as in Western Europe with strategically located production facilities and a global sales and distribution network.