TATA STEEL

'Tata Steel', formerly known as 'TISCO' (Tata Iron and Steel Company Limited), is a steel company based in Mumbai, India.
Its main plant is located in Jamshedpur, Jharkhand, though with its recent acquisitions, the company has become a multinational with operations in various countries. The registered office of Tata Steel is in Mumbai. In the year 2000, the company was recognised as the world's lowest-cost producer of steel. The company was also recognised as the world's best steel producer by World Steel Dynamics in 2005. The company is listed on BSE and NSE.
On January 2, 2006, the police fired on tribals protesting against the construction of a boundary wall by Tata Steel in Kalinganagar. Thirteen tribals and one police officer were killed during this tragic incident.[1]

Contents

Management

History

Production

Corus takeover

Management

Ratan Tata is the Chairman and B. Muthuraman is the Managing Director of the company. Dr. Tridibesh Mukherjee and Mr. Arun Singh are Deputy Managing Directors of the company
Tata Steel is a limited company registered in India under the Companies Act, 1956

History

Tata Steel was established by Indian Parsi businessman Jamshedji Tata in 1907 (he died in 1904, before the project was completed). Tata Steel introduced an 8-hour work day as early as in 1912 when only a 12-hour work day was the legal requirement in Britain. It introduced leave-with-pay in 1920, a practice that became legally binding upon employers in India only in 1945. Similarly, Tata Steel started a Provident Fund for its employees as early as in 1920, which became a law for all employers under the ''Provident Fund Act'' only in 1952. Tata Steel's furnaces have never been disrupted on account of labour strike and this is an enviable record of sorts.
Tata's track record of good works and social awareness has become tarnished in recent years with complaints about heavy handed tactics to clear land for factories. In one incident in 2006, protesters were fired upon by police and it was reported that security staff hired by Tata were involved in the rape of a teenage girl.
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. Tata Steel has been most recently condemned by environmentalists for its plans to build a vast port close to the world's largest breeding grounds for an endangered species of turtle.
Environmentalists say Tata's plan to construct a new "megaport" at Dhamra on the eastern coast of Orissa will damage the habitat of the olive ridley turtles which breed on nearby beaches of the Gahirmatha Marine Sanctuary. This sanctuary is one of very few such sites in the world and each year more than 100,000 olive ridley turtles come here to nest.

Production

Tata Steel annually produces 9 million tonnes of steel. It's turnover in fiscal year 2005-06 was Rs 17,144 crores (consolidated turnover was 22,518 crores). The company's operating profit (PBT) in the same year was Rs 5,932 crores while its PAT was Rs. 3734.62 crores; it produced a record-breaking 5.0 million tonnes of salable steel in its Jamshedpur works that year.

Corus takeover

★ On October 20, 2006, Tata Steel announced that it had agreed to pick up a 100% stake in the Anglo-Dutch steel maker Corus Group at 455 p. per share in an all cash deal, cumulatively valued at GBP 4.3 billion (USD 8.04 billion).

★ On November 19 2006, the Brazilian steel company CSN launched a counter offer for Corus at 475 pence per share, valuing it at $8.4 billion.

★ On December 11 2006, Tata preemptively upped the offer to 500 pence, which was within hours trumped by CSN offer of 515 pence per share, valuing the deal at $ 9.6 Billion. The Corus board promptly recommended both the revised offers to its shareholders.

★ On January 31 2007 Tata Steel won their bid for Corus after offering 608p per share, valuing Corus at £6.7 bn ($11.3bn); as a result and pending acceptance and completion of the takeover, the joining of the two will create the fifth largest steel company in the world.