Tata Steel
Formerly | Tata Iron and Steel Company Limited (TISCo) |
---|---|
Company type | Public |
| |
ISIN | INE081A01020 |
Industry | Steel Iron |
Founded | 26 August 1907Jamshedpur, Bihar (now Jharkhand), India | at
Founders | Jamsetji Tata Dorabji Tata |
Headquarters | Mumbai, Maharashtra, India[1] 18°55′54″N 72°49′58″E / 18.9316°N 72.8327°E |
Area served | Worldwide |
Key people |
|
Products | Steel Long steel products Structural steel Wire products Steel casing pipes Household goods |
Revenue | ₹230,980 crore (US$28 billion) (2024)[3] |
₹6,667 crore (US$800 million) (2024)[3] | |
₹−4,910 crore (US$−590 million) (2024)[3] | |
Total assets | ₹273,424 crore (US$33 billion) (2024)[3] |
Total equity | ₹92,433 crore (US$11 billion) (2024)[3] |
Number of employees | 78,321 (2024)[3] |
Parent | Tata Group |
Subsidiaries | Tata Steel UK Tata Steel Netherlands Tata Steel Thailand Jamshedpur FC Tata Robins Fraser Ltd. Mjunction |
Website | www |
Tata Steel Limited is an Indian multinational steel-making company, based in Jamshedpur, Jharkhand and headquartered in Mumbai, Maharashtra. It is a part of the Tata Group.
Formerly known as Tata Iron and Steel Company Limited (TISCO), Tata Steel is among the largest steel-producing companies in the world, with an annual crude steel capacity of 35 million tonnes. It is one of the world's most geographically diversified steel producers, with operations and a commercial presence across the world. The group (excluding SEA operations) recorded a consolidated turnover of US$31 billion in the financial year ending 31 March 2023.[citation needed]It is the largest steel company in India (measured by domestic production), with an annual capacity of 21.6 million tonnes after Steel Authority of India Ltd. (SAIL).[4][5] Tata Steel, SAIL, and Jindal Steel and Power are the only three Indian steel companies that have captive iron-ore mines, which gives the three companies price advantages.[6]
Tata Steel operates in 26 countries, with key operations in India, the Netherlands, and the United Kingdom, and employs around 80,500 people.[7] Its largest plant (10 MTPA capacity) is located in Jamshedpur, Jharkhand. In 2007, Tata Steel acquired the UK-based steelmaker Corus.[8][7] It was ranked 486th in the 2014 Fortune Global 500 ranking of the world's biggest corporations.[9] It was the seventh most valuable Indian brand of 2013, according to Brand Finance.[10][11][12]
Tata Steel was listed amongst India's Best Workplaces in Manufacturing by Great Place to Work for the fifth time in 2022.[13]
History
Tata Iron and Steel Company (TISCO) was founded by Jamsetji Nusserwanji Tata and established by Sir Dorabji Tata on 26 August 1907. TISCO started pig iron production in 1911 and began producing steel in 1912 as a branch of Jamsetji's Tata Group.[14][15][16] The first steel ingot was manufactured on 16 February 1912. During the First World War (1914–1918), the company made rapid progress.
In 1920, The Tata Iron & Steel Company also incorporated The Tinplate Company of India Ltd (TCIL), as a joint venture with then Burmah Shell to manufacture Tinplate. TCIL is now Tata Tinplate and holds 70% market share in India.
By 1939, it operated the largest steel plant in the British Empire. The company launched a major modernisation and expansion program in 1951. Later, in 1958, the program was upgraded to 2 million metric tonnes per annum (MTPA) project.[14] By 1970, the company employed around 40,000 people at Jamshedpur, and a further 20,000 in the neighbouring coal mines.[15]
In November 2021, Tata Steel was the most profitable company in the Tata Group.[17] In July 2019 Tata Steel Kalinganagar (TSK) was included in the list of the World Economic Forum's (WEF) Global Lighthouse Network.[18]
The Key Managerial Personnel (KMP) at Tata Steel Limited India are Koushik Chatterjee as CFO (KMP) and Parvatheesam Kanchinadham as Company Secretary. Koushik Chatterjee, Mallika Srinivasan, Chandrasekaran Natarajan and 7 other members are presently associated as directors.[19]
Nationalisation attempts
There have been two attempts to nationalise Tata Steel, one in 1971 and another in 1979, both of which were unsuccessful. In 1971, Prime Minister Indira Gandhi tried to nationalise the company, but failed. In 1979, Prime Minister Morarji Desai wanted to nationalise TISCO (now Tata Steel), spurred by Minister for Industries George Fernandes, and Minister of Steel, Mines, and Coals Biju Patnaik. However, union protests prevented such nationalisation efforts.[15][20][21]
In 1990, the company expanded and established a subsidiary, Tata Inc., in New York. The company changed its name from TISCO to Tata Steel Ltd. in 2005.[22]
Labour welfare
Tata Steel was among the first Indian companies to provide various labour welfare benefits, such as eight-hour workdays since 1912, free medical care since 1915, school facilities for the children of employees since 1917, paid time off since 1920, the formation of a provident fund and accident compensation in 1920, vocational training since 1921, maternity benefits since 1928, profit sharing bonuses since 1934, and retiring gratuity since 1937.[23]
Expansions
Acquisitions
NatSteel in 2004: Tata Steel agreed to acquire the steel-making operations of the Singapore-based NatSteel for $486.4 million in cash.[24] NatSteel had ended 2003 with a turnover of $1.4 billion and a profit before tax of $47 million.[24] The steel businesses of NatSteel would be run by the company through a wholly owned subsidiary called Natsteel Asia Pvt. Ltd.[24] The acquisition was completed in February 2005.[25][26] At the time of acquisition, NatSteel had a capacity of about 2 million tonnes per annum of finished steel.[26][27]
Millennium Steel in 2005: Tata Steel acquired a majority stake in the Thailand-based steelmaker Millennium Steel for a total cost of $130 million. It paid US$73 million to Siam Cement for a 40% stake and offered to pay 1.13 baht per share for another 25% of the shares of other shareholders.[28][29] Millennium Steel has now been renamed Tata Steel Thailand and is headquartered in Bangkok.[30] On 31 March 2013, it held approximately 68% shares in the acquired company.[7]
Corus in 2006: Tata Steel signed a deal with Anglo-Dutch company, Corus to buy 100% stake at £4.3 billion ($8.1 billion) at 455 pence per share.[31] On 19 November 2006, the Brazilian steel company Companhia Siderúrgica Nacional (CSN) launched a counter offer for Corus at 475 pence per share, valuing it at £4.5 billion. On 11 December 2006, Tata pre-emptively upped its offer to 500 pence per share, 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 it's bid for Corus after offering 608 pence per share, valuing Corus at £6.7 billion ($12 billion).
In 2005, Corus employed around 47,300 people worldwide, including 24,000 in the UK.[31] At the time of the acquisition, Corus was four times larger than Tata Steel, in terms of annual steel production. Corus was the world's 9th largest producer of Steel, whereas Tata Steel was in the 56th position. The acquisition made Tata Steel the world's 5th largest producer of Steel.[31]
Tayo Rolls in 2008, formerly Tata-Yodogawa Limited is a metal fabrication and processing company headquartered in Jamshedpur, India. It was founded in 1968 as a joint venture between Tata Steel and the Japan-based Yodogawa Steels. In 2008, the company made the rights issue which was subscribed for only about 50% of its total value – Rs 60 crore. Due to undersubscription, the promoters acquired them, and as a result, Tayo Rolls became a Tata Steel Subsidiary. Tata Steel owns 55.24% of the Tayo Rolls.[32][33]
Steel Engineering and Vinausteel in 2007: Tata Steel through its wholly owned Singapore subsidiary, NatSteel Asia Pte Ltd, acquired a controlling stake in both rolling mill companies located in Vietnam: Structure Steel Engineering Pte Ltd (100% stake) and Vinausteel Ltd (70% stake). The enterprise value for the acquisition was $41 million. With this acquisition, Tata Steel got hold of two rolling mills, a 250,000 tonnes per year bar/wire rod mill operated by SSE Steel Ltd. and a 180,000 tonnes per year reinforcing bar mill operated by Vinausteel Ltd.[34][35]
Bhushan Steel in 2018: Tata Steel acquired the entire company in 2017–18 when Insolvency proceedings were initiated against the former company on 26 July 2017 under IBC. Tata Steel emerged as the highest bidder and took over the company through its wholly-owned subsidiary Bamnipal Steel Ltd. The company was renamed as Tata Steel BSL. Later in 2021 Tata Steel amalgamated Bamnipal Steel Ltd. and Tata Steel BSL thereby the latter became a direct subsidiary of Tata Steel (72.65%).[36][37][38]
Usha Martin (Steel division) in 2019: Tata Sponge Iron Limited, a subsidiary of Tata Steel Limited, acquired the steel business of Usha Martin Limited in 2019 for Rs.4,094 crore. The acquisition involved UMLs 1.0 MnTPA specialty steel plant in Jamshedpur that makes alloy-based long products, a functional iron ore mine, a coal mine under development, and captive power plants.[39][40]
Nilachala Ispat Nigam Ltd in 2022: Tata Steel through its wholly owned subsidiary, Tata Steel Long Products (TSLP), acquired controlling stake in NINL. It beat Jindal Steel and JSW Steel to acquire Odisha-based Neelachal Ispat Nigam Ltd (NINL) for ₹12,100 crore (US$1.4 billion).[41]
Joint Ventures
In 2006, Tata Steel and BlueScope Steel launched Tata BlueScope Steel Ltd, a joint venture for the manufacturing of pre-engineered steel products.[42]
In 2014, Tata Steel launched Jamshedpur Continuous Annealing and Processing Company Pvt Ltd (JCAPCPL), a joint venture with Nippon Steel to produce continuous annealed products intended for the automotive industry. The plant had a capacity of 600,000 tonnes and was setup with an investment of 2,750 Crores. Tata Steel held 51% of the joint venture.[43]
Amalgamation
In 2022, Tata Group moved the amalgamation of seven metal companies of the group into Tata Steel. Seven metal companies of Tata Group that will be merged with Tata Steel are Tata Steel Long Products Limited (TSLP), The Tinplate Company of India Limited (TCIL), Tata Metaliks Limited (TML), TRF Limited, The Indian Steel & Wire Products Limited (ISWPL), Tata Steel Mining Limited (TSML) and S & T Mining Company Limited.[44][45]
Sports
Tata Steel has traditionally played a key role in the development of sports in India. They have been involved in the inception of Tata Football Academy, TSAF Climbing Academy, Tata Archery Academy, Naval Tata Hockey Academy – Jamshedpur and Odisha Naval Tata Hockey High-Performance Centre.[46]
Operations
Tata Steel is headquartered in Mumbai, Maharashtra, India, and has its marketing headquarters at the Tata Centre in Kolkata, West Bengal. It has a presence in around 50 countries with manufacturing operations in 26 countries including India, Malaysia, Vietnam, Thailand, UAE, Ivory Coast, Mozambique, South Africa, Australia, United Kingdom, The Netherlands, France and Canada.[47]
Tata Steel primarily serves customers in the automotive, construction, consumer goods, engineering, packaging, lifting and excavating, energy and power, aerospace, shipbuilding, rail, and defence and security sectors.[48]
Upcoming plans
Tata Steel has set a target of achieving an annual production capacity of 100 million tonnes by 2015; it is planning for capacity expansion to be balanced roughly 50:50 between greenfield developments and acquisitions.[49][50] Overseas acquisitions have already added an additional 21.4 million tonnes of capacity, including Corus (18.2 million tonnes), NatSteel (2 million tonnes) and Millennium Steel (1.2 million tonnes). Tata plans to add another 29 million tonnes of capacity through acquisitions.[49][50]
Major greenfield steel plant expansion projects planned by Tata Steel include:[49]
- A 6 million tonnes per annum capacity plant in Kalinganagar, Odisha, India;[51]
- An expansion of the capacity of its plant in Jharkhand, India from 6.8 to 10 million tonnes per annum;[51]
- A 5 million tonnes per annum capacity plant in Chhattisgarh, India (Tata Steel signed a memorandum of understanding with the Chhattisgarh government in 2005; the plant is facing strong protest from tribal people);[52]
- A 3 million tonnes per annum capacity plant in Iran;[53][54]
- A 2.4 million tonnes per annum capacity plant in Bangladesh;[55]
- A 10.5 million tonnes per annum capacity plant in Vietnam (feasibility studies are underway); and[56]
- A 6 million tonnes per annum capacity plant in Haveri, Karnataka.[57]
- Acquisition of Neelachal Ispat Nigam Ltd in Odisha, India
Issues with Europe business
Since Tata Steel's Corus acquisition in 2007, Tata Steel's Europe unit faced issues from oversupply in the market, labor unions, inexpensive imports from Chinese steel makers, and pressure from regulators for decarbonisation (green taxes) which forced Tata Steel to consolidate its businesses in Europe.[58][59]
In 2015, Tata Steel was looking to sell its facilities in Port Talbot, Hartlepool, Rotherham, and Stocksbridge, which was put on hold due to Brexit. In April 2016, Tata Steel's Long Products Europe Division located in Scunthorpe, England was sold to Greybull Capital LLP.[60] The unit was renamed as British Steel Limited.[61][62]
In February 2017, the company decided to sell its specialty division to Liberty House Group.[63]
In September 2017, ThyssenKrupp of Germany and Tata Steel announced plans to combine their European steel-making businesses. The deal will structure the European assets as Thyssenkrupp Tata Steel, an equal joint venture. The announcement estimated that the company would be Europe's second-largest steelmaker, and listed future headquarters in Amsterdam.[64][65] However, in 2019, antitrust regulators of EU refused to accept deals citing reduction in competition.[66] In 2019 Tata Steel decided to sell some of its non-core business units in UK.[67]
In June 2020, the company requested £500 million in UK government support. Later in July media houses reported that the company has proposed to give away 50% of its stake in Port Talbot Steelworks to the UK Government in return for capital injections amounting to £900 million.[68][69]
On 11 September 2024, Tata Steel UK announced that 2,500 jobs would go at the Port Talbot steelworks despite a £500 million taxpayer-backed deal from the UK Government.[70]
In November 2020, SSAB of Sweden announced its intention to buy Tata Steel's unit in IJmuiden, Netherlands. However, in 2021, SSAB backed out citing technical and cost issues involved with the deal.[71][72]
In October 2021, Tata Steel Europe officially split its businesses into two independent entities Tata Steel Netherlands and Tata Steel UK.[73]
In April 2022, Tata Steel announced that they had to find alternative sources of coal for their steel production plants in the UK and Netherlands after European nations stopped doing business with Russia because of its invasion of Ukraine.[74]
Issues with South East Asia Business
In January 2019, citing debt issues and consistent losses Tata Steel, decided to sell a 70 percent stake in its S.E. Asia business (NatSteel and Tata Steel Thailand) to China's state-owned HBIS Group for $327 million. But the deal fell through citing regulatory issues.[75][76]
Later in 2019, Tata Group signed a memorandum of understanding with the Private Equity firm, Synergy Metals and Mining Fund for divestment of 70% shareholding in Tata Steel (Thailand) Public Company Ltd. (excluding NatSteel)[77]
In 2021, Tata Steel decided against divesting the South East Asian businesses citing improvement in financials, including reduction in total debt and increase in the cash flow. This was confirmed through its regulatory filing where Tata Steel reclassified its S.E. Asians assets from 'held for sale' to 'continuing operations'.[78]
In October 2021, Tata Steel announced the sale of its subsidiary Natsteel Holdings Pte. Ltd to TopTip Holding Pte, a Singapore-based steel and iron ore trading company. The deal was valued at $172 million (₹1,275 crore). The deal included two Singapore facilities and one Malaysian facility excluding the wire business in Thailand.[79]
Shareholding
As on 29 September 2023, Tata Group held 33.90% shares in Tata Steel. Over one million individual shareholders hold approximately 10% of its shares. Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 10.89% shareholding.[7][80]
Shareholders | Shareholding[7] |
---|---|
Promoters: Tata Group companies | 33.90% |
Insurance Companies | 10.89% |
Individual shareholders | 9.44% |
Foreign Institutional Investors | 20.31% |
GDRs | 5.06% |
Others | 20.39% |
Total | 99.99% |
The equity shares of Tata Steel[81] are listed on the Bombay Stock Exchange,[82] where it is a constituent of the BSE SENSEX index,[83] and the National Stock Exchange of India,[84] where it is a constituent of the S&P CNX Nifty,[85] the Global Depository Receipts (GDRs) are listed on the London Stock Exchange[86] and the Luxembourg Stock Exchange.[87][88]
Subsidiaries
Mjunction
Mjunction, a Tata Steel and SAIL joint venture, India's Largest B2B E-Commerce company. Founded in February 2001, it is today not only India's largest eCommerce company (having eTransacted worth over Rs. 900 billion till date) but also runs the world's largest eMarketplace for steel.
Tata Steel Thailand
Tata Steel's subsidiary Tata Steel (Thailand) Public Company Limited (SET: TSTH),[89] (formerly Millennium Steel Public Company Limited) is listed on the Stock Exchange of Thailand. Tata Steel Limited directly holds 67.90% through its investment arm T S Global Holdings Pte. Ltd.[90]
Tata Tinplate
The Tinplate Company of India Limited (TCIL) is a subsidiary of Tata Steel. Founded in 1920, TCIL is India's oldest and current largest tinplate manufacturer. The company is described as having "pioneered the tinplate industry in India".[91] TCIL has a 70% market share in India and exports a fourth of its products outside India.[92][93]
In January 1920, the Burmah Oil and The Tata Iron & Steel Company (TISCO) jointly incorporated The Tinplate Company of India Limited (TCIL) to cater to the demand for tinplate that arose following World War I. Burmah contributed two-thirds of the starting capital and Tata the remainder. Burmah required a tinplate for the cans used to hold the kerosene it produced.[94]
By November 1921, structural steel for the plant and machinery had been imported from the US and UK, and the plant was established at Golmuri, Jamshedpur near the Tata Steelworks. The design was based on an Indiana rolling plant. In December 1922, the first hot dip tinning plant started rolling out finished tinplate.[91] By 1924, a total of six mills were in production and the company was producing almost 40 percent of India's tinplate needs. In 1926, the level of production exceeded the country's imports for the first time.[94] The company's main competition was from tinplate imported from South Wales. In its early years, the Company relied to a large extent on European 'covenanted' labor for supervisory and skilled roles, but this lessened over time as the skills of Indian workers developed. Just under 3,000 workers were employed in the late 1920s, and early 1930s.[95]
With the outbreak of World War II, TCIL diversified into the manufacturing of un-tinned black plates used in Jettison tanks for the Royal Air Force. Also, TCIL took over the processing of steel from the sheet mills of Tata Steel to augment production.
TCIL entered into an agreement with Wean United Canada to switch to the Electrolytic Tinning Process. In 1973, an Electrolytic Tinning Line was commissioned with a capacity of 90,000 tonnes per annum to produce tinplate and tin-free steel. In 1996, TCIL established its first Cold Rolling Mill Complex with a capacity of 110,000 tonnes per annum, as part of a backward integration to reduce dependency on imported uncoated sheet steel coils, known as tin mill black plate (TMBP). In 2005, a printing and lacquering line was introduced as part of a forward integration to reduce supply chain inefficiencies. In 2007, mill capacity was more than doubled to 379,000 tonnes by the commissioning of a second Tinning Line; a second Cold Rolling Mill facility was added a year later. Production and sales reached 360,000 tons in 2018–19.[96]
In 2012, Tata Steel increased its shareholding in TCIL to 73.44% which currently stands at 74.96%[97]
Through volumes, TCIL holds 70% market share in India and exports 25% of the production to Southeast Asia, Europe, and the Middle East.[93][96]
In August 2021, announced its expansion plans, an additional capacity of 3,00,000 tons per annum.[98]
In September 2022, it was announced that the company would be merged into Tata Steel.[99]
Carbon footprint
Tata Steel Group reported Total CO2e emissions (Direct + Indirect) for 31 March 2021 at 25,790 Kt (−1,820 /-6.6% y-o-y).[100] There is little evidence of a consistent declining trend as yet.
Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 |
---|---|---|---|---|---|---|
21,820[101] | 21,760[102] | 26,640[103] | 27,690[104] | 28,310[105] | 27,610[106] | 25,790[100] |
Controversies
- Environment protection at Dhamra Port: The Dhamra Port, a joint venture between Larsen & Toubro and Tata Steel near Dhamra river in Bhadrak district of Odisha has come in for criticism from groups such as Greenpeace, Wildlife Protection Society of India and the Orissa Traditional Fishworkers' Union for environment protection.[107] The port is being built within five kilometers of the Bhitarkanika National Park, a Ramsar wetland of international importance, home to an impressive diversity of mangrove species, saltwater crocodiles 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 the nesting and feeding grounds of the turtles, the mudflats of the port site itself are breeding grounds for horseshoe crabs as well as rare species of reptiles and amphibians.[108][109] The port began commercial production in May 2011.[110] In response, the company website informs that it has been working with International Union for Conservation of Nature (IUCN) for guidance and assistance in the implementation of environmental standards and designing mitigation measures for potential hazards during construction and operation of the Port.[111][112][113]
- Job cuts in Europe: In 2019 citing surplus capacity and high costs the company announced plans to cut 3,000 jobs in Europe, including the UK (Port Talbot Steelworks), Netherlands, and other units. The decision was made after the failed attempt to consolidate with German Steelmaker Thyssenkrupp.[114][115]
In media
Documentaries
- Tata Steel: Seventy Five Years of the Indian Steel Industry, directed by Shyam Benegal in 1983.[116]
- Crucible of Fire, directed by Stephen Alter and narrated by Victor Banerjee in 2008.[117]
See also
- List of steel producers
- List of companies of India
- List of largest companies by revenue
- List of corporations by market capitalization
- Make in India
- Forbes Global 2000
- Fortune India 500
- Tata Group
- Russi Mody
Further reading
- Kannappan, Subbiah (October 1959). "The Tata Steel Strike: Some Dilemmas of Industrial Relations in a Developing Economy". Journal of Political Economy. 67 (4): 489–507. doi:10.1086/258220. eISSN 1537-534X. ISSN 0022-3808.
- Lala, R. M. (2007). The Romance of Tata Steel. United Kingdom: Penguin UK (published 1 August 2007). ISBN 9788184759082.
- Maheshwari, Sunil Kumar; Ganesh, M. P. (April 2006). "Ethics in Organizations: The Case of Tata Steel". Vikalpa. 31 (2): 75–88. doi:10.1177/0256090920060205. eISSN 2395-3799. ISSN 0256-0909.
- Mukherjee, Rudrangshu (2008). A Century of Trust: The Story of Tata Steel. Penguin Books India. ISBN 9780670081561.
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