Tata Steel
Encyclopedia
Tata Steel (formerly TISCO and Tata Iron and Steel Company Limited) is a multinational
steel company headquartered in Jamshedpur, India
and part of Tata Group
. It is the world's seventh-largest steel company, with an annual crude steel capacity of 31 million tonnes, and the largest private-sector steel company in India measured by domestic production. Tata Steel is also India's second-largest and second-most profitable private-sector company, with consolidated revenues of and net profit of over in the year ended March 31, 2011. Tata Steel is the eighth most-valuable Indian brand according to an annual survey conducted by Brand Finance
and The Economic Times in 2010. It is currently ranked 410th in the Fortune Global 500
.
Tata Steel's largest plant is located in Jamshedpur, Jharkhand, with its recent acquisitions, the company has become a multinational
with operations in various countries. The Jamshedpur plant contains the DCS supplied by Honeywell
.The registered office of Tata Steel is in Mumbai
. The company was also recognized as the world's best steel producer by World Steel Dynamics in 2005. The company is listed on Bombay Stock Exchange
and National Stock Exchange of India
, and employs about 82,700 people (as of 2007). In August 2007 Tata Steel won the bid to acquire the UK-based steel maker Corus in what was, to date, the largest international acquisition by an Indian company. It made the Tata Group the world's fifth largest steel maker, and catapulted them to the global league.
and Tata Steel, has come in for criticism from groups such as Greenpeace
, Wildlife Protection Society of India
and the Orissa Traditional Fishworkers' Union. 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 crocodile
s 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 crab
s as well as rare species of reptiles and amphibians. One such species, the amphibian Fejervarya cancrivora
, is the first record for the Indian mainland.
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
steel company headquartered in Jamshedpur, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
and part of Tata Group
Tata Group
Tata Group is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. Tata Group is one of the largest companies in India by market capitalization and revenue. It has interests in communications and information technology, engineering, materials, services, energy,...
. It is the world's seventh-largest steel company, with an annual crude steel capacity of 31 million tonnes, and the largest private-sector steel company in India measured by domestic production. Tata Steel is also India's second-largest and second-most profitable private-sector company, with consolidated revenues of and net profit of over in the year ended March 31, 2011. Tata Steel is the eighth most-valuable Indian brand according to an annual survey conducted by Brand Finance
Brand Finance
Brand Finance is an independent intangible asset valuation consultancy. It advises strongly branded organisations, or those with valuable intangible assets, on how to maximise their value through effective management of their brand and other intangible assets...
and The Economic Times in 2010. It is currently ranked 410th in the Fortune Global 500
Fortune Global 500
The Fortune Global 500 is a ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by Fortune magazine....
.
Tata Steel's largest plant is located in Jamshedpur, Jharkhand, with its recent acquisitions, the company has become a multinational
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
with operations in various countries. The Jamshedpur plant contains the DCS supplied by Honeywell
Honeywell
Honeywell International, Inc. is a major conglomerate company that produces a variety of consumer products, engineering services, and aerospace systems for a wide variety of customers, from private consumers to major corporations and governments....
.The registered office of Tata Steel is in Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...
. The company was also recognized as the world's best steel producer by World Steel Dynamics in 2005. The company is listed on Bombay Stock Exchange
Bombay Stock Exchange
The Bombay Stock Exchange is a stock exchange located on Dalal Street, Mumbai and is the oldest stock exchange in Asia. The equity market capitalization of the companies listed on the BSE was 1.63 trillion as of December 2010, making it the 4th largest stock exchange in Asia and the 8th largest...
and National Stock Exchange of India
National Stock Exchange of India
The National Stock Exchange is a stock exchange located at Mumbai, Maharashtra, India. It is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalization...
, and employs about 82,700 people (as of 2007). In August 2007 Tata Steel won the bid to acquire the UK-based steel maker Corus in what was, to date, the largest international acquisition by an Indian company. It made the Tata Group the world's fifth largest steel maker, and catapulted them to the global league.
Capacity Expansion
Tata Steel has set an ambitious target to achieve a capacity of 100 million tonne by 2015. Managing Director B. Muthuraman stated that of the 100 million tonne, 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.
- Tata Steel has lined up a series of greenfield projectGreenfield projectIn many disciplines a greenfield is a project that lacks any constraints imposed by prior work. The analogy is to that of construction on greenfield land where there is no need to remodel or demolish an existing structure...
s in India and outside which includes
- 6 million tonne plant in Orissa (India)
- 6.8 million tonne in Jharkhand (India)(2.9 million tonne will be added by dec, 2011)
- 5 million tonne in Chhattisgarh (India)
- 3-million tonne plant in Iran
- 2.4-million tonne plant in Bangladesh
- 5 million tonne capacity expansion at Jamshedpur (India)
- 10.5 million tonne plant in Vietnam (feasibility studies underway)
Corus
- On 20 October 2006, TISCO signed a deal with Anglo-Dutch company, Corus
- On 19 November 2006, the BrazilBrazilBrazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
ian steel company Companhia Siderúrgica NacionalCompanhia Siderúrgica NacionalCompanhia Siderúrgica Nacional is the second major steel-maker company in Brazil. Its main plant is located in the city of Volta Redonda, in the state of Rio de Janeiro...
(CSN) launched a counter offer for Corus at 475 pence per share, valuing it at £4.5billion.
- On 11 December 2006, Tata preemptively upped the offer to 500 pence, 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.
Other acquisitions
- In August 2004, Tata Steel entered into definitive agreements with Singapore based NatSteel Ltd to acquire its steel business for Singapore $486.4 million (approximately Rs 1,313 crore) in an all cash transaction.
- In 2005, Tata Steel acquired 40% Stake in Millennium Steel in Thailand for $130 million (approx. Rs 600 crore).
- In 2007 Tata Steel through its wholly owned Singapore subsidiary, NatSteel Asia Pte Ltd acquired controlling stake in two rolling mills: SSE Steel Ltd, Vinausteel Ltd located in Vietnam.
Controversies
The company is facing increasing criticism that the drive for growth and profits is completely overshadowing its once famed philanthropy, and causing lasting social and environmental damage at various locations. In response, Tata cites its programs for environment and resource conservation, including reduction in greenhouse emission, raw materials and water consumption. The company has increased waste re-use and re-cycling, and reclaims land at its captive mines and collieries through forestation. Tata Steel's chief, environment and occupational health, says, "Our capital investment in pollution-abatement solutions was in the vicinity of Rs 400 crore in 2003-04."Dhamra Port
The Dhamra Port, a Joint Venture between Larsen & ToubroLarsen & Toubro
Larsen & Toubro Limited is an Indian multinational conglomerate company headquartered in Mumbai, India. The company has four main business sectors: technology, engineering, construction and manufacturing. L&T has an international presence, with a global spread of offices and factories, further...
and Tata Steel, has come in for criticism from groups such as Greenpeace
Greenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...
, Wildlife Protection Society of India
Wildlife Protection Society of India
The Wildlife Protection Society Of India was founded in 1994 by Belinda Wright, its Executive Director, who was an award-winning wildlife photographer and filmmaker till she took up the cause of conservation. From its inception, WPSI's main aim has been to bring a new focus to the daunting task of...
and the Orissa Traditional Fishworkers' Union. The port is being built within five kilometres of the Bhitarkanika National Park
Bhitarkanika National Park
Bhitarkanika National Park is a national park located in the Kendrapara District of Orissa in Eastern India. The park encompasses an area of 672 km² of the Bhitarkanika Mangroves, a mangrove swamp which lies in the river delta of the Brahmani, Baitarani, and Dhamara rivers. The national park...
, a Ramsar wetland of international importance, home to an impressive diversity of mangrove
Mangrove
Mangroves are various kinds of trees up to medium height and shrubs that grow in saline coastal sediment habitats in the tropics and subtropics – mainly between latitudes N and S...
species, saltwater crocodile
Saltwater Crocodile
The saltwater crocodile, also known as estuarine or Indo-Pacific crocodile, is the largest of all living reptiles...
s and an array of avian species. The port will also be approximately 15 km. from the turtle nesting of Gahirmatha Beach
Gahirmatha Beach
Gahirmatha Beach is a beach in the Indian state of Orissa. The beach separates the Bhitarkanika mangroves from the Bay of Bengal, is the world's most important nesting beach for Olive Ridley Sea Turtles...
, 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 crab
Horseshoe crab
The Atlantic horseshoe crab, Limulus polyphemus, is a marine chelicerate arthropod. Despite its name, it is more closely related to spiders, ticks, and scorpions than to crabs. Horseshoe crabs are most commonly found in the Gulf of Mexico and along the northern Atlantic coast of North America...
s as well as rare species of reptiles and amphibians. One such species, the amphibian Fejervarya cancrivora
Fejervarya cancrivora
The Crab-eating Frog , formerly , is a frog native to south-eastern Asia including the Philippines and more rarely as far west as Orissa in India. It inhabits mangrove swamps and marshes and is the only known modern amphibian which can tolerate salt water...
, is the first record for the Indian mainland.