Description
PRESENTATION ON TISCO
PROJECT COLOUR
Adding colours to steel…!!!
This is Tata…
• J N Tata established Tata Group in the mid of 19th century • Since then Tata group has grown phenominally. with Rs.1.5 cr turnover p.a. has become India’s No.1 group overtaking Reliance Industries Ltd with Rs.89000 cr turnover p.a. • The Group has seven business sectors Engineering | Materials | Energy | Chemicals | Services | Consumer products | Information systems, communications
Tata Corus
• Tata Steel Established in 1907 • Corus was formed from the merger of British Steel plc (1967,UK) and Koninklijke Hoogovens (1918,Netherlands) on the 6th October 1999 • Tata steel Acquired Corus for 608 pence per share amounting to $12.1 billion
Consolidate or Perish…
• The suppliers to and buyers from steel makers are well consolidated • The de-integrated method of Steel-Making • Cost reduction drive by Anglo-Dutch firm. • “One had cheap iron ore and a low cost manufacturing base, the other the technology.” • Corus wanted higher margins, Tata wanted lucrative markets.
• Corus makes nearly four times more steel than tata steel. This deal will increase Tata steel capacity exponentially • Long term synergies • Leverage R&D for Tata Steel greenfield projects in orissa, chhattisgarh, jharkand • Cost savings of $350 million a year in 3 years time.
• The product mix of corus • Gives it a wider customer base and enhanced product portfolio • Significant cost savings by exporting cheaper inputs (slabs & billets) inputs from india that will be processed in corus • The combine entity becomes the 5th largest producer in the world and the 2nd in Europe
• Access to EU & Corus’s worldwide Distribution Network. • A dominant position in Value Added Products. • COMPETENCY SHARING.
Build or Acquire…??
Million tonnes Tata Steel Proposed Orissa Project Tata Steel Proposed Jharkhand Project Corus Average Cost in India Cost (Rs crore) Cost/Tonne
5
15400
30800
12 18 6
42000 54000 24000
35000 30000 40000
New Investments of TATA Steel
• National Jharkhand Chattisgarh Orissa - Kalinganagar Orissa - Dhamra Port Tamil Nadu • International NatSteel- Asia Millennium Steel Thailand Australia South Africa Bangladesh Iran
Potential Risk…
• While Corus’s Dutch units are performing well, its UK based plants are Strugling. • Pension liabilities of Corus($24 billion) will be a drag on future profitability. • Doubts about Tata Steel being able to service its debts if steel prices dip.
Touching Every Corner of Globe…!!!
EUROPE (Excl. UK & Netherlands) Manufacturing locations: 19 Distribution Centers: 13 NatSteel ASIA Production facility: Across Countries Production capacity: 1.7mtpa
USA Manufacturing locations: 3 Distribution Centers: 2
Jamshedpur Orrisa INDIA Production facility: 1 Crude Steel Capacity: 5mtpa Distribution centers: 22 TATA STEEL THAILAND Production facility: 3 Production Capacity: 1.7mtpa Distribution centers: 3
UK & IRELAND Manufacturing locations: 3 Distribution Centers: 2
Institutional Alliance of Corus..
UK Steel Enterprise
International Aluminium Institute
International Iron & Steel Institute
European Confederation of Iron and Steel Industries
“Will Tata Motors Try And Takeover GM?”
“Why Not, Who Knows…!!!”
doc_326178449.ppt
PRESENTATION ON TISCO
PROJECT COLOUR
Adding colours to steel…!!!
This is Tata…
• J N Tata established Tata Group in the mid of 19th century • Since then Tata group has grown phenominally. with Rs.1.5 cr turnover p.a. has become India’s No.1 group overtaking Reliance Industries Ltd with Rs.89000 cr turnover p.a. • The Group has seven business sectors Engineering | Materials | Energy | Chemicals | Services | Consumer products | Information systems, communications
Tata Corus
• Tata Steel Established in 1907 • Corus was formed from the merger of British Steel plc (1967,UK) and Koninklijke Hoogovens (1918,Netherlands) on the 6th October 1999 • Tata steel Acquired Corus for 608 pence per share amounting to $12.1 billion
Consolidate or Perish…
• The suppliers to and buyers from steel makers are well consolidated • The de-integrated method of Steel-Making • Cost reduction drive by Anglo-Dutch firm. • “One had cheap iron ore and a low cost manufacturing base, the other the technology.” • Corus wanted higher margins, Tata wanted lucrative markets.
• Corus makes nearly four times more steel than tata steel. This deal will increase Tata steel capacity exponentially • Long term synergies • Leverage R&D for Tata Steel greenfield projects in orissa, chhattisgarh, jharkand • Cost savings of $350 million a year in 3 years time.
• The product mix of corus • Gives it a wider customer base and enhanced product portfolio • Significant cost savings by exporting cheaper inputs (slabs & billets) inputs from india that will be processed in corus • The combine entity becomes the 5th largest producer in the world and the 2nd in Europe
• Access to EU & Corus’s worldwide Distribution Network. • A dominant position in Value Added Products. • COMPETENCY SHARING.
Build or Acquire…??
Million tonnes Tata Steel Proposed Orissa Project Tata Steel Proposed Jharkhand Project Corus Average Cost in India Cost (Rs crore) Cost/Tonne
5
15400
30800
12 18 6
42000 54000 24000
35000 30000 40000
New Investments of TATA Steel
• National Jharkhand Chattisgarh Orissa - Kalinganagar Orissa - Dhamra Port Tamil Nadu • International NatSteel- Asia Millennium Steel Thailand Australia South Africa Bangladesh Iran
Potential Risk…
• While Corus’s Dutch units are performing well, its UK based plants are Strugling. • Pension liabilities of Corus($24 billion) will be a drag on future profitability. • Doubts about Tata Steel being able to service its debts if steel prices dip.
Touching Every Corner of Globe…!!!
EUROPE (Excl. UK & Netherlands) Manufacturing locations: 19 Distribution Centers: 13 NatSteel ASIA Production facility: Across Countries Production capacity: 1.7mtpa
USA Manufacturing locations: 3 Distribution Centers: 2
Jamshedpur Orrisa INDIA Production facility: 1 Crude Steel Capacity: 5mtpa Distribution centers: 22 TATA STEEL THAILAND Production facility: 3 Production Capacity: 1.7mtpa Distribution centers: 3
UK & IRELAND Manufacturing locations: 3 Distribution Centers: 2
Institutional Alliance of Corus..
UK Steel Enterprise
International Aluminium Institute
International Iron & Steel Institute
European Confederation of Iron and Steel Industries
“Will Tata Motors Try And Takeover GM?”
“Why Not, Who Knows…!!!”
doc_326178449.ppt