TATA STEEL GROUP-A1 Vinod Vyas Akhil Anam Jaffar Khan Kavita Shah Shweta Shinde
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 1/29
TATA STEEL
GROUP-A1Vinod Vyas
Akhil Anam
Jaffar Khan
Kavita Shah
Shweta Shinde
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 2/29
JAMSHEDJI TATA
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 3/29
INTRODUCTION Established in 1907
World·s 5th
largest company.
World`s second most geographically diversified
steel producer.
Tata Steel has a balanced global presence.
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 4/29
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 5/29
STEEL
USES
TextilesRailways
Aviation
Construction
Communication
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 6/29
VISION AND OBJECTIVE Our people, by fostering team work, nurturing talent,
enhancing leadership capability and acting with pace,
pride and passion.
Our offer, by becoming the supplier of choice, deliveringpremium products and services, and creating value with
our customers.
Our innovative approach, by developing leading edge
solutions in technology, processes and products.
Our conduct, by providing a safe working place,
respecting the environment, caring for our communities
and demonstrating high ethical standards.
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 7/29
7
Point of
Inflection
Point of
Saturation
India
Trigger
Point
Singapore
USA
Peak Point
0 100 200 300 400 500 600 700 800
India
China
USA
Singapore
Australia
EU 15
Japan
India will be a part of The new Steel world «
INDIA HAS A POTENTIAL FOR EXPONENTIAL
GROWTH IN STEEL CONSUMPTION
Per capita in KG
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 8/29
PRODUCTS
FLAT PRODUCT BEARINGS LONG PRODUCT
STEELJUNCTION
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 9/29
BRANDS
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 10/29
PROCESS
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 11/29
TATA
STEEL
HUMAN RESOURCE
OPERATIONS
MARKETING
FINANCE
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 12/29
HUMAN RESOURCE
The Tata Steel Group believes that its people are
as much its assets as its infrastructure. And that
the creation of value for the company depends ontheir professional and personal well-being.
Tata Steel·s Management Trainee programme has
recruited a large number of trainees fromdifferent premier Institutes across India.
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 13/29
HUMAN RESOURCE Trainings and Motivation
Rewards and Awards
Appraisal system
Employees welfare Act.
Special Experience Delegates for short assignment in coras.
Business Programmers
Lateral Move.
In addition, Customized Training programmes in the functional
areas of Project Management, Contract Management, Financial
Management, Commercial Taxes, Supply Chain Management, and
Marketing and Sales Management have been developed.
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 14/29
SWOT Analysis ² Tata SteelI
N
T
E
R
N
A
L
E
X
T
E
R
N
A
L
Str t W k
Opportunities Threats
5-th Largest Steel Manufacturer in theWorld
Combined Capacity of 28.2 Million
Tonnes 3 times current capacity
More than 100 years experience in theSteel Industry
Large debt of Rs.35,000 crores afterCORUS acquisition
Pressure on Margins due to
Increased Capacity
Short Term Operational Issues, tillCORUS debt completely meet up.
UK Steel Market is available to TataSteel for selling its products
Consistent Growth Rate could take
the TATA-CORUS combine to 4th placewithin the next 3-4 years
Bringing Operational Synergieswithin the Leverage Return Time
Consolidation in the Top 3 positions
that might hurt margins even further
Arcelor Mittal·s Presence in Markets
in the UK poses an imminent threat
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 15/29
CORUS DEAL ² IMPACT
Key Points:
The estimates suggest that the combined entity would continue to generate a growth
rate in excess of 28%.
The ROCE & ROE would dip significantly on the merger, but would then startincreasing.
Most Importantly, the huge Interest and Principal Repayment obligations would be
met.
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 16/29
AWARDS International Financing Review (IFR) Asia awarded
Tata Steel the Best Syndicated/Leveraged Loan forthe financing of the acquisition of Corus
Tata Steel won the Most Admired Knowledge Award(MAKE Asia) for the year 2007
The Amity Corporate Excellence Award from AmityInternational Business School
Business Today and Ernst & Young surveys rated TataSteel as India·s Best Managed Company in Metalsand Mining
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 17/29
LAW AND LEGAL
Bombay House, 24 Homi Mody Street, Fort,
Mumbai 400 001. Tel : (022) 6665 8282
Fax : (022) 6665 7724 / 6665 7725
E-mail : [email protected]
Website: www.tatasteel.com
REGISTERED
OFFICE
TSR Darashaw Limited
6-10, Haji Moosa Patrawala Industrial Estate,
20, Dr. E. Moses Road, Mahalaxmi, Mumbai 400
011.Tel : (022) 6656 8484 Fax : (022) 6656 8494 /
6656 8496
E-mail : [email protected]
Website : http://www.tsrdarashaw.com
SHARE
REGISTRARS
Contd«
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 18/29
AZB & Partners
Amarchand & Mangaldas & Suresh A. Shroff
& Co.
Mulla & Mulla and Craigie Blunt & Caroe
Herbert Smith LLP
Cleary Gottlieb Steen & Hamilton LLP
Linklaters LLP
Freehills
Milbank, Tweed, Hadley & McLoy LLP
LEGAL
ADVISORS
AUDITORS Messrs Deloitte Haskins & Sells
LAW AND LEGAL
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 19/29
INVESTMENT IN INFRASTRUCTURE
SEGMENT
RS Billion FY 03 FY 04 FY 05 FY 06 FY 07Planned Exp in
next 5 years
Airports 20 15 15 24 25 400
Irrigation 151 139 208 222 252 1300
Ports 7 5 5 10 20 500
Power 232 312 340 350 346 2000
Railways 121 135 153 146 140 750
Roads 206 190 199 212 213 1700
Telecom 133 126 89 116 116 800
Urban Infra. 162 174 184 220 250 1400
PROJECTED INVESTMENT Till 2012 by Committee on Infrastructure
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 20/29
BACKUP-FUTURE PLANS India will become the fastest growing economy out of 34
developed and emerging markets and 3rd largesteconomy by 2020.
Current GDP per capita is USD 2500 and expected to beUSD 5000 in 2020.
Poverty ratio dropped from 50% of population in 1950to 26% in 2005.
Economic growth rose from 3.7% in 50s & 60s to +6% in
1980s. Current population growth rate of 1.5% to decrease to
1.3% in 2020.
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 21/29
FINANCE Increase earnings from current operations by optimizing assets,
continuous improvement, and achieving synergies across all
Business Units
Growth through capacity expansion, mining projects, enhancedResearch and Development and innovation
The company raised around USD 6.2 billion of term debt with an
average life of around 5 years
On the equity side, company raised around USD 2.27 billion (Rs.
9,120 crores)of equity and convertible preference shares
Company raised around USD 10 billion during the year and
completed the long term financing for the Corus acquisition
Contd«
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 22/29
FINANCE Focus on improvement in the working capital management and
allocation of capital to value creating projects.
Borrow Long ²Term fund for other growth projects as required
based on the Company·s long term financing strategy which
ensures strong capital structure
Made the strategy for return on invested capital improve from19% to30% over the next 5 years
Dispose and restructure assets that are of low profitability
Tata Steel signed a Joint Venture agreement with the members of
the Al Bahja Group, a leading business house in Oman for limestone
Tata Steel signed a joint venture with Riversdale listed company
on Australian stock exchange with 35 % interest for Coking Coal
Contd«
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 23/29
FINANCE
Tata Steel has a Joint Venture with Vale in Australia for
a Coking Coal mine for enhance the long term
competitiveness of its global operations
Tata Steel has signed an equal stakes Joint Venture
agreement with Steel Authority of India (SAIL), for coal
mining activities in India.
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 24/29
Profit & Loss Account - Analysis
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 25/29
M A CALCULATION
Difference in Profits 100Difference in Sales
P.V. Ratio
22191.80-19762.57
10546.56-8948.73 100
1597.832429.23
100
65.78%
Rs.(IN CRORES)
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 26/29
M A CALCULATION
Break-Even-Sales(Rs.) Fixed Cost
P.V. Ratio
3680.2565.78%
Rs.2420.86
Rs.(IN CRORES)
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 27/29
M A CALCULATION
Margin Of Safety(MOS)
MOS Total Sales-Break Even Sales
22191.80-2420.86
Rs. 19770.94
Rs.(IN CRORES)
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 28/29
RATIOS
Current Ratio 1.87:1
Interest Cover Ratio 9.04 Times
Debt-To-Equity Ratio 0.66:1
Return on Capital Employed 21.97%
Assets Turnover Ratio 106.25%
8/8/2019 Tata Steel-2003 Final[1]
http://slidepdf.com/reader/full/tata-steel-2003-final1 29/29
TAHNK YOU