Industry Profile: India is the world’s third-largest steel producer. As a developing economy, India needs steel to manufacture its ever-growing automobile industry and build infrastructure like railways, dams, roads, etc. The growth of the sector is driven mainly due to the availability of raw steel. India’s crude steel output grew 10.7 percent year-on-year to 25.76 million tonnes (MT) from January-March 2017. India’s crude steel output during April 2017 increased by 5.4 percent year-on-year to 8.107 MT. Finished steel exports rose 102.1 percent to 8.24 MT, while imports fell by 36.6 percent to 7.42 MT in 2016-17. India’s steel exports rose 142 percent in April 2017 to 747,000 tonnes over April 2016, while imports fell by 23 percent to 504,000 tonnes in April 2017 over April 2016. Total consumption of finished steel grew by 3.4 percent year-on-year at 6.015 MT during April 2017. The sector is essential in making export and earning foreign exchange. According to the data released by the Department of Industrial Policy and Promotion (DIPP), the Indian metallurgical industries attracted Foreign Direct Investments (FDI) to the tune of US$ 10.33 billion from April 2000–to March 2017.
Company Profile: It is a multinational diversified steel manufacturing company. The company was established in 1907 as Tata steel and IRON ( TISCO), founded by Jamsetji Nusserwanji Tata. The company is the world’s sixth-largest steel manufacturing company, with operations in over 26 countries. With deals with Corus, Millennium Steel (renamed Tata Steel Thailand), and NatSteel Holdings, Singapore, Tata Steel diversified its manufacturing and marketing business in Europe, South East Asia, and the pacific–rim countries. Corus, which manufactured over 20 MTPA of steel in 2008, has operations in the UK, the Netherlands, Germany, France, Norway, and Belgium. Tata steel holds steel assets from mining and smelting. Its product varies from Flat steel, Roll steel, Long steel, metallic coated steel, Tube steel, Pre-finished steel, packaging steel, Electroplated steel, narrow strips, construction products, and agricultural products. The company holds many brands like TUSCON and Tata shakti.
Shareholding Pattern: BSE Data
Financials and Ratios : [table id=33 /]
Future Prospects: The company was going through some bad times for many reasons. China dumping, high debt issue, not a great demand for European business. Under the leadership of Cyrus Mistry, concentration was on Tata motor, but after he was ousted from the group, Natarajan Chandrashekharan’s new chairman concentrated on Tata steel. The company is selling loss-making businesses to reduce the debt burden. The price of iron is increasing, and demand in India is rising. The company also restructure Pension plans of workers in European business.
