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TATA STEEL

GROUP-A1Vinod Vyas

Akhil Anam

Jaffar Khan

Kavita Shah

Shweta Shinde

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JAMSHEDJI TATA

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INTRODUCTION Established in 1907

World·s 5th

largest company.

World`s second most geographically diversified

steel producer.

Tata Steel has a balanced global presence.

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STEEL

USES

TextilesRailways

Aviation

Construction

Communication

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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.

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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

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PRODUCTS

FLAT PRODUCT BEARINGS LONG PRODUCT

STEELJUNCTION

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BRANDS

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PROCESS

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TATA

STEEL

HUMAN RESOURCE

OPERATIONS

MARKETING

FINANCE

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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.

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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.

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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

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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.

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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

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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 : cosectisco@tata.com

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 : csg-unit@tsrdarashaw.com

Website : http://www.tsrdarashaw.com

SHARE

REGISTRARS

Contd«

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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

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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

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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.

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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«

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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«

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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.

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Profit & Loss Account - Analysis

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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)

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M A CALCULATION

Break-Even-Sales(Rs.) Fixed Cost

P.V. Ratio

3680.2565.78%

Rs.2420.86

Rs.(IN CRORES)

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M A CALCULATION

Margin Of Safety(MOS)

MOS Total Sales-Break Even Sales

22191.80-2420.86

Rs. 19770.94

Rs.(IN CRORES)

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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%

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TAHNK YOU