About
Tata Steel Ltd
Tata Steel is one of the world's largest steel companies with a global annual crude steel production capacity of 34 million tonnes per annum (MnTPA). The Company has presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products. It operate manufacturing units in 26 countries and a commercial presence in over 50 countries. Tata Steel is the second largest steel producer in Europe with a crude steel production capacity of over 12.1 million tonnes per annum. It offers a broad range of steel products including a portfolio of high value added downstream products such as hot rolled, cold rolled, coated steel, rebars, wire rods, tubes and wires. It is a diversified steel producer with major operations in India, Europe and South East Asia.
The company also involves in prospecting, discovering, and mining iron ore, coal, ferro alloys, and other minerals; designing and manufacturing plants and equipment for steel, oil and natural gas, energy and power, mining, railways, ports, aviation, and space industries; and agricultural implements. Further, they offers alumina, dolomite, and monolithic refractories, as well as silica refractories for coke ovens and the glass industry; manufactures bricks; sponge iron lumps and fines; and rolls for applications in integrated steel plants, power plants, and government mint, as well as paper, textile, and food processing sectors.
Tata Steel's operations are grouped under six Strategic Business Units include Bearings Division, Ferro Alloys and Minerals Division, Agrico Division, Tata Growth Shop (TGS), Tubes Division and Wire Division. They have introduced several branded steel products, including Tata Steelium (the world's first branded Cold Rolled Steel), Tata Shaktee (Galvanised Corrugated Sheets), Tata Tiscon (rebars), Tata Pipes, Tata Bearings, Tata Structural, Tata Agrico (hand tools and implements) and Tata Wiron (galvanised wire products).
Tata Steel Ltd was incorporated in the year 1907 with the name Tata Iron & Steel Company Ltd. In the year 1911, the company commenced the operations of the first Blast Furnace or the 'A' Blast Furnace. In December 2, 1911, the fist collieries were obtained and the first cast of pig iron was produced. In they ear 1912, the first ingot of steel rolled out of the Sakchi Plant and in October 1912, the Bar Mills started their commercial production. Also, the B Blast Furnace became operational during the year. In the year 1918, India's first steel (coke) plant was established in Jamshedpur.
In the year 1925, the New Rail Mill, Merchant Mill and Sheet Mill went into operation. In the year 1931, they opened an apprentice shop. In the year 1941, they started manufacture of special steel for war purpose. They produced a wide variety of special steels required for defense purposes including armoured cars called 'Tatanagars'. In the year 1943, Howrah Bridge was constructed from steel supplied by the company. In the year 1955, the company signed an agreement with Kaiser Engineers for two million tonne expansion programme. In the year 1980, they started the first phase of the four-phased modernisation programme.
In the year 1984, the company introduced BOF steelmaking, which could produce liquid steel in forty five minutes when it took the old open hearth furnaces, close to five hundred under the first phase of modernisation. During the year 1984-85, Indian Tubes Company Ltd was amalgamated with the company. The second phase of modernisation was in the year 1988, which concentrated largely on the iron-making area. During the year 1993-94, the company commissioned the Hot Strip Mill with the capacity of one million tonne per annum which was the company's third modernisation programme. In the year 2000, the company inaugurated the 1.2 million tonnes Cold Rolling Mill Complex as a first step towards expansion and modernisation.
In January 2, 2004, The Indian Steel Wire Products Company was acquired at Jamshedpur. In June 4, 2005, the company signed an MoU for setting up a five-million tonne per annum Greenfield integrated steel plant in the Jagdalpur district of Chhattisgarh. In July 2005, they formed a joint venture with Blue Scope Steel Ltd, Australia for quoted steel manufacturing facility. In July 21, 2005, the company acquired stakes in the Australian coal mines. In August 2005, the company set up Met coke manufacturing facility in West Bengal.
In September 19, 2005, the company signed an MoU with the Government of Jharkhand for setting up a 12-million tonnes per annum Greenfield integrated steel plant in the Manoharpur and Chandil areas of Jharkhand. In December 14, 2005, they signed definite agreement with Cementhai Holding Company to acquire shares and invest equity in the Milennium Steel, Thailand. Also, the name of the company was changed from Tata Iron & Steel Company Ltd to Tata Steel Ltd with effect from May 19, 2005.
In the year 2006, the company inaugurated India's first automated Jigging and Hydrocyclone Plant, with a 1.6 MTPA throughput, at Noamundi Iron Mines. They commenced the work on Ferro Chrome Plant by acquiring Rawnet Ferrous Industries Pvt Ltd, in Orissa, a Ferro Alloys plant with a capacity of 50,000 tpa of high carbon chrome. They set up a Joint Venture Company with Larsen and Toubro Ltd for developing an all weather modern deep water port in the state of Orissa on the Eastern Coast of India. Tata NYK Shipping Pte Ltd, a joint venture shipping company between the company and Nippon Yusen Kabushiki Kaisha was set up to cater to dry and break bulk cargo and also the shipping activities. In August 7, 2006, the company inaugurated the Roll Forming and Pre-Engineered Building Facilities of Tata Bluescope Ltd at Pune.
In April 2, 2007, the company acquired Corus -- Europe's second largest steel producer for consideration of USD 12 Billion, which made Tata Steel the sixth largest steel producer globally and the second-most geographically diversified steel producer in the world. They also entered into an agreement for acquiring controlling equity stake in two rolling mills located in Haiphorg, Vietnam. Also, they signed a joint venture agreement with Riversdale Mining for Mozambique coal project. In December 2007, the company and SODEMI (state owned company for mineral development) entered into joint venture agreement for the development of Mount Nimba Iron ore deposits in Ivory Coast (West Africa).
In January 2008, the company and the members of the Al Bahja Group, a leading business house of Oman entered into a Joint Venture Agreement for the development of the Uyun Limestone deposits at Salalah in the Sultanate of Oman. Also, they entered an agreement with Steel Authority of India Ltd (SAIL) to establish a 50:50 joint venture company for coal mining in India. In February 2008, they opened their fourth retail outlet, 'steeljunction' at Behala.
During the year 2008-09, the company completed the expansion of crude steel capacity to 6.8 mtpa as part of their expansion programme. Also, they commissioned Sinter Plant No. 4, the 'H' Blast Furnace and the Continuous Caster No. 3 at LD Shop-1 during this expansion phase. In June 16, 2008, the company and their wholly owned subsidiary, Rawmet Ferrous Industries Ltd entered into an agreement with Jasper Industries Pvt Ltd for setting up a coal based power plant of 2 X 67.5 MW capacity in Orissa.
In September 2008, the company through their subsidiaries signed a Heads of Agreement memorandum with New Millennium Capital Corporation (NML), a Canadian listed mining company aiming to develop iron ore projects in Northern Quebec, Labrador and Newfoundland provinces. As part of the restructuring of the overseas holdings, the company transferred their stake in Tata Steel (Thailand) Public Company Ltd to Tata Steel Global Holdings Pte Ltd. The company subscribed 35,88,022 rights shares of Tayo Rolls Ltd and consequently, Tayo Rolls Ltd has become a subsidiary of the Company with effect from December 01, 2008.
In October 22, 2009, the company and Mineral and Metal Trading Company Ltd signed an agreement to establish a 74:26 joint venture company for acquiring, development and operation of mines and processing of minerals and metals.
Hooghly Met Coke and Power Company Ltd was amalgamated with the company with effect from April 1, 2009. The construction of a warehousing shed and a building for a power receiving sub-station had started at one corner of the plant area. They increased the production capacity of Crude Steel from 61,10,000 tonnes to 68,00,000 tonnes, Saleable Steel from 58,40,000 tonnes to 65,00,000 tonnes and Welded Steel Tubes from 2,84,000 tonnes to 2,88,000 tonnes.
In October 2009, the company entered into agreement with MMTC Limited, a Central Government undertaking and established a joint venture company for acquiring, developing and operating mines and processing of minerals and metals. In November 2009, they signed a Joint Venture Agreement with NML, to advance the development of the DSO Project. In January 2010, the company entered into an MoU with NMDC Ltd, to explore the possibility of acquisition, exploration and development of mines, extraction and processing of minerals, setting up integrated steel plants and other businesses of mutual interest.
In April 6, 2010, the company entered in an MoU with Nippon Steel Corporation (NSC), Japan for setting up a Continuous Annealing and Processing Line at Jamshedpur, India with 0.6 mtpa capacity. In June 2010, the company subscribed to a private placement of Canadian $20 million by NML pursuant to which Tata Steel Global Minerals Holding Pte Ltd holds a 27.4% stake in NML.
In June 2010, the company and Tata Metaliks Ltd entered into an MoU with the Government of Karnataka for setting up an integrated steel plant of 3 mtpa in Agadi and Boodagatti villages of Haveri District, Karnataka. In August 2010, the company's subsidiary Corus UK Ltd and Sahaviriya Steel Industries Public Company Ltd (SSI) signed an MOU which sets out the scope of a potential transaction whereby SSI would acquire from Corus the Teesside Cast Products (TCP) business in a transaction valued at approximately USD 500 million.
Tinplate Company of India Ltd became a subsidiary of the company with effect from April 01, 2011, consequent to increase in the company's shareholding in the Tinplate Company of India Ltd from 42.88% to 59.45%. This increase is due to automatic and compulsory conversion of 3% fully convertible debentures of Rs 100 each held by the company into equity shares on April 01, 2011.
In April 2011, the company and Krosaki Harima Corporation (KHC) signed definitive agreements to induct KHC as a strategic partner in Tata Refractories Ltd (TRL). Under this arrangement, KHC will acquire 51% equity stake out of TSL's current 77.46% stake in TRL. As per the scheme of amalgamation, Centennial Steel Company Ltd, a wholly owned subsidiary company was amalgamated with the Company with effect from September 27, 2011.
In January 2012, the company secured a contract from Siemens Wind Power to supply 25,000 tones of profiled steel plate for wind towers. Tata Steel will deliver 25,000 tones of profiled plate (cut into the desired shape) between April and September 2012.
On 19 April 2012, Tata Steel announced that it has been awarded a high eight-figure US dollar contract to supply pipe for Enterprise Products Partners L.P.'s new crude oil export pipeline in the Gulf of Mexico's Keathley Canyon area. The contract will see Tata Steel deliver more than 48,000 metric tonnes of steel pipe from its 42-inch mill in Hartlepool, England for the Lucius Development Project, which has the capacity to produce in excess of 80,000 barrels of oil per day.
On 22 June 2012, Tata Steel announced the completion of an important strategic project that makes it only the second vertically integrated producer of grain oriented electrical steels in the European Union.On 2 November 2012, Tata Steel unveiled 'Tata Astrum', a new brand of its Hot Rolled products range at an event in New Delhi. The Astrum product range will find application in the Automotive, Earth Moving Equipment, Railways, Fabrication, Construction and Industrial Machinery segments.
On 7 November 2012, Tata Steel announced the opening its second aerospace service centre in China at Xi'an. The new facility in Xi'an complements its existing operation in Suzhou, opened in 2009, and aims to serve the growing demand for aerospace materials in the region.
On 12 February 2013, Tata Steel announced that it has restarted its second blast furnace at the Port Talbot steelworks in the UK following the completion of a 185 million rebuilding project. The state-of-the-art new furnace is more efficient and will allow Tata Steel to continue to meet the demanding requirements of UK and European manufacturing industries.
On 19 February 2013, Tata Steel announced that it has been granted the core supplier status by French car manufacturer PSA Peugeot Citro. On 10 June 2013, Tata Steel announced the successful completion of an upgrade of its corrosion-resistant coating line in South Wales, UK to improve and expand the company's range of high-value, high-formability automotive steels.
On 19 June 2013, Tata Steel announced that it has secured a long-term agreement to supply aerospace steels to Safran Group, the world-class manufacturer of aircraft, rocket engines, propulsion systems and aircraft equipment. The initial value of the contract is in excess of 9 million per year, with prospects for this to grow during the life of the agreement.
On 8 August 2013, Tata Steel announced that it won an order to manufacture 60,000 tonnes of high-quality rail for a new high-speed line linking the two holy cities of Mecca and Medina in Saudi Arabia.
On 21 October 2013, Tata Steel announced that has won a contract to supply rail track and steel sleeper plate to Network Rail for at least five years. Network Rail, the company set up to operate and maintain Britain's rail infrastructure, has chosen to source more than 95% of its rail from Tata Steel until 2019, with the option to extend this until 2024.
On 22 October 2013, Tata Steel announced that it will build a Vacuum Induction Melting (VIM) furnace at its Stocksbridge site in South Yorkshire, UK, to enable it to tap into new market opportunities and develop innovative new products for the aerospace and oil & gas industries. The cutting-edge VIM furnace will allow Tata Steel's Speciality Steels business, which already supplies steel to aircraft engine and airframe makers, to further develop relationships with its customers and expand its product portfolio.
On 23 October 2013, Tata Steel announced the commissioning of a new heat treatment plant at its Hayange plant in the Lorraine region of France. The unit will produce train track capable of lasting up to three times longer than standard rail. The new facility will more than double the annual output of heat-treated rail from 55,000 to 125,000 tonnes. On 7 November 2013, Tata Steel UK announced the launch of dent-resistant steel for car makers in Britain that helps to further reduce vehicle weight.
On 8 January 2014, Tata Steel announced that it has won a two-year contract to supply more than 200,000 tonnes of track to French rail operator SNCF. The contract will see Tata Steel supply the majority of SNCF's rail requirements in lengths of up to 108 metres from its plant in Hayange, Northern France.
On 16 January 2014, Tata Steel announced the launch of India's First Ferro Manganese brand TATA FERROMAG and India's first Ferro Chrome brand TATA TISCROME. Tata Steel will sell these two branded products in Gujarat, Maharashtra, NCR, Rajasthan, Odisha and West Bengal, which are the major consumption centres. Ferro Chrome and Ferro Manganese are Ferroalloys widely used as alloying agents in production of Carbon & Stainless steel. Ferro Chrome provides corrosion resistance thus increasing the life of stainless steel, while Ferro Manganese provides the necessary toughness and hardness to steel.
On 8 April 2014, Tata Steel announced that New Zealand's Steel and Tube Ltd has agreed to acquire Tata Steel International (Australasia) Ltd. for a cash consideration of NZ$27.5 million. Tata Steel International Australasia Ltd. (TSIAL) is a New Zealand based company which is the leading supplier of stainless steel, engineering steels, and composite floor decks to the New Zealand and Pacific Island markets. The division also offers ex-mill sales of colour coated and packaging steels, railway tracks, and structural sections.
On 28 April 2014, Tata Steel announced the commissioning of new Coke Oven Battery at its Jamshedpur steel manufacturing facility, thereby making the steel facility self-sufficient in coke requirement for stable operation.
On 27 June 2014, Tata Steel Europe officially inaugurated new slitting line at its Ruhr-based Steel Service Center in Gelsenkirchen, Germany. The new slitting line is specially geared up to process advanced and ultra high-strength steels, which are used to manufacture demanding automotive applications used in chassis, suspension, wheels and seats. They include advanced high strength steels with unique forming capabilities for chassis and cold rolled advanced high strength steels for light-weight seat components.
On 1 July 2014, Tata Steel announced restructuring proposals to improve the competitiveness of its South Wales, UK steelmaking business. The proposed changes would enable the UK Strip Products business to compete in Europe's lower market demand era by reducing costs equivalent to the loss of about 400 jobs in Port Talbot.
On 25 July 2014, Tata Steel announced a successful dual tranche Reg S issuance of USD 1.5 billion of unsecured bonds in the international markets. It was Tata Steel's debut US dollar bond issuance and a part of the company's long term financing strategy to raise capital internationally.
On 4 August 2014, Tata Steel announced the launch of an innovative new product for automotive manufacturers in response to market requirements for stronger and lighter steels.
On 11 August 2014, Tata Steel announced that it has signed a series of contracts with Subsea 7 - one of the world's leading contractors in engineering, construction and subsea services to the offshore industry - to supply undersea pipes to four separate North Sea projects.
On 1 September 2014, Jamshedpur Continuous Annealing and Processing Company Private Limited (JCAPCPL) announced the inauguration of India's first Continuous Annealing & Processing Line, a 600,000 tonnes per annum facility for manufacturing high-quality cold rolled sheets exclusively for the automotive industry, including outer panels and high tensile sheets. JCAPCPL is a 51:49 Joint Venture between Tata Steel Ltd and Nippon Steel & Sumitomo Metal Corporation (NSSMC). JCAPCPL will source steel from Tata Steel.
On 18 September 2014, Tata Steel announced that it has opened a new finishing line at its IJmuiden steelworks in the Netherlands to strengthen the supply of high-value steels to the automotive sector and other markets. Tata Steel invested 12 million euros in Finishing Line 32, which will process up to 400,000 tonnes of galvanised (corrosion resistant) steel coil a year. The opening of the new finishing line has also freed up Tata Steel's Cold Rolling Plant in IJmuiden, which was responsible for finishing galvanised steel. This will enable the company to increase the supply of uncoated cold rolled steel to customers. The new finishing line follows the opening in IJmuiden of the third hot-dip galvanising line in 2009.
On 13 November 2014, Tata Steel announced that it has completed a major upgrade of the Hot Strip Mill at its Port Talbot steelworks in South Wales, UK enabling it to further improve the quality of its steel products used in a wide range of markets, including automotive, engineering, construction and domestic appliances. The upgrade of the Hot Strip Mill follows investments totalling more than 250 million in state-of-the-art steelmaking and processing technology at the South Wales operations.On 17 November 2014, Tata Steel announced that it has commenced commercial production of GGBS, world's most sustainable building material. GGBS is used as a part replacement of cement and has been the solution for high strength, cost effective concrete in the developed economies for last 50 years.
On 3 February 2015, Tata Steel announced that it has reached a significant milestone in the transformation of its European steel portfolio with the launch of the 100th new product in its revitalised new product development programme. On 2 February 2015, Tata Steel launched an innovative, stronger structural steel product which can reduce the construction time of new buildings.
On 9 February 2015, Tata Steel announced the signing of a prestigious contract to supply highly wear-resistant rail for the Crossrail project beneath the heart of London. Tata Steel said at that time that it had already commenced deliveries to the Crossrail project, and will ultimately supply the project with more than 57 km of its heat treated, wear-resistant rail. In total 7,000 tonnes of Tata Steel rail will be used to create one of Europe's largest railway and infrastructure projects.
On 1 April 2015, Tata Steel announced that it has completed the acquisition from SSAB of Sweden of two service centres in Halmstad, Sweden and Naantali, Finland as well as the entire remaining 50% stake in Norsk St l Tynnplater AS, another strip products service centre based in Frederikstad, Norway. The service centres offer cutting-to-length, slitting and recoiling services to customers in the automotive, construction and electrical supplies industries, as well as in heavy and light engineering.
On 1 April 2015, Tata Steel announced that it has divested its entire stake in Lanka Special Steels Limited (LSSL) to E.B. Creasy & Company PLC (EBCC) for a total consideration of LKR 433 million (around Rs 20.4 crore) in an all cash deal. LSSL was a wholly owned subsidiary of Tata Steel incorporated in Sri Lanka. It is engaged in the business of manufacturing and supplying hot dip galvanized wire and nail wire with an installed capacity of 14,400 metric tonnes per annum. It had an annual turnover of LKR 1,569 million (Rs 74.0 crore) in FY 14.
On 7 April 2015, Tata Steel announced that it has completed a series of investments at its Steelpark site at Wednesfield in the West Midlands that has strengthened the site's position as the UK's largest steel processing centre. The start-up of a further multi-strand blanking line has completed the expansion of Steelpark's new Light Gauge Service Centre, which operates cut-to-length, blanking and slitting lines processing hot rolled, cold rolled and galvanized steel coils. On 14 June 2015, Tata Steel UK announced that it has launched a new initiative in its efforts to resolve the pension dispute with its UK trade unions. The company has approached Acas (Advisory, Conciliation and Arbitration Service) to help facilitate the next phase in talks between the parties.
On 1 July 2015, Tata Steel announced that the European Union (EU) has agreed to contribute 7.4 million euro towards testing a groundbreaking new iron production process being developed at Tata Steel's IJmuiden steelworks in the Netherlands. The six-month test campaign of the HIsarna pilot plant in 2016 will establish whether the new technology can produce molten iron in a stable way over a sustained period of time.
On 5 August 2015, Tata Steel announced that negotiations about the potential sale of its European long products business and associated distribution facilities to Klesch Group have been discontinued. The company was in talks with Klesch following the signing of a memorandum of understanding in October 2014.
Tata Steel's Greenfield project at Kalinganagar in the state of Odisha achieved a major milestone on 4 September 2015 with start of coke production from its Coke Ovens. The heating of Coke Ovens was started on 19 May 2015.
On 20 October 2015, Tata Steel's Long Products Europe business announced proposals to stop production of steel plate. The decision was made in response to a shift in market conditions caused by a flood of cheap imports, particularly from China, a strong pound and high electricity costs.
On 28 October 2015, Tata Steel announced the opening of its new UK research centre at the University of Warwick's Science Park. The opening marks the first phase of Tata Steel's relocation of its UK R&D work to the University of Warwick campus.
On 18 November 2015, Tata Steel unveiled plans to create one of the world's largest solar energy projects of its kind in the Netherlands. The company said at that time that it will mount 80,000 solar panels on the factory roofs at its IJmuiden steelworks in Netherlands.
Tata Steel announced that its Kalinganagar steel plant was dedicated to Odisha on 18 November 2015. The Kalinganagar steel plant is the largest single-location greenfield steel project in India. The first phase (3 MnTPA) of 6 MnTPA will produce world-class flat, lighter, high-tensile strength steel and will augment Tata Steel's Indian production to around 13 MnTPA of crude steel in India.
T S Global Holdings Pte Ltd. (TSGH), a subsidiary of Tata Steel incorporated in Singapore, executed agreements on 2 December 2015 for loan facilities of US$1.5 billion comprising a 5 year loan of US$750 million and a 6 year loan of US$750 million. The proceeds of this loan will be used to repay existing term loan facilities in TSGH.
On 3 December 2015, Tata Steel announced that its Long Products Europe business will continue to supply French rail operator SNCF for at least five more years after a new deal was signed. Tata Steel will supply the bulk of SNCF's 750,000 tonne requirements of high-quality rail over the duration of the renewed contract in lengths of up to 108 metres from its Hayange facility.
On 22 December 2015, Tata Steel UK announced the signing of a letter of intent with Greybull Capital to enter exclusive negotiations for the potential sale of its Long Products Europe business. On 18 January 2016, Tata Steel UK announced cost-saving proposals to improve the competitiveness of its UK business.
On 22 March 2016, Tata Steel announced the first despatch of Tata Ferroshots from its Kalinganagar steel plant. The product was commercially launched in India for the first time. The end use of Tata Ferroshots is in electric arc furnaces, induction furnaces, cupolas, basic oxygen furnaces and foundries as a replacement of pig iron, scrap or DRI.
On 24 March 2016, Tata Steel UK announced that it has reached an agreement to sell its Clydebridge and Dalzell steel facilities in Scotland. The deal involves the sale of the two plants to the Scottish Government which would then sell them on to Liberty House. The Dalzell plate mill transforms a semi-finished steel slab into a steel plate, while the Clydebridge facility processes steel plate using a quench and tempering technique.
On 29 March 2016, Tata Steel board reviewed the performance of the European business of the company, more specifically, of Tata Steel UK. Following the strategic view taken by the Tata Steel board regarding the UK business, the Tata Steel board advised the board of its European holding company i.e. Tata Steel Europe, to explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts.
On 11 April 2016, Tata Steel Europe formally commenced the process of divestment of its entire shareholding in its subsidiary Tata Steel UK. On the same day, Tata Steel UK announced the signing of an agreement to sell its long products Europe business to the family investment office, Greybull Capital. The sale for a nominal consideration, would be in exchange for Greybull Capital taking on the whole of the business, including assets and relevant liabilities, and securing an appropriate funding package. The sale covers several UK-based assets including the Scunthorpe steelworks, two mills in Teesside, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities, as well as a mill in northern France.
On 9 May 2016, the Board of Tata Steel Europe announced that seven expressions of interest submitted for Tata Steel's UK business have been immediately taken forward to the next stage of the sale process. In the next phase of the sales process the progressing interested parties will be given access to further business information and management team presentations in order for them to rapidly progress their interest to a binding stage.On 17 May 2016, Tata Steel announced that it has decided not to go ahead with the proposed merger of Tata Metaliks Limited and Tata Metaliks DI Pipes Limited with Tata Steel. The Scheme of Amalgamation between Tata Metaliks Limited and Tata Metaliks DI Pipes Limited with Tata Steel was earlier recommended by the Committee of Directors of Tata Steel in April 2013 and approved by the company's shareholders on in May 2014. The decision not to go ahead with the proposed merger was taken due to inordinate delay in obtaining requisite regulatory and statutory approvals along with significant dilution in the intended synergies that were envisaged in April 2013. Tata Metaliks is a subsidiary of Tata Steel. On 14 September 2016, Tata Steel announced that its Kalinganagar, Odisha plant achieved yet another milestone with the flagging off of the first hot rolled steel export rake from the plant.
On 27 October 2016, Tata Steel announced that Government of Quebec has joined as a strategic equity partner in its Canadian iron ore mining venture Tata Steel Minerals Canada (TSMC). TSMC together with its parent companies signed definite agreements for concluding investments of C$ 125 million as equity and C$50 million as debt with Government of Quebec's investment entities, Resources Quebec (RQ) and Investment Quebec (IQ) respectively, totaling C$ 175 million. The investment will result in an 18% equity stake for RQ in TSMC in line with the carrying value of the investment in Canadian iron ore assets for Tata Steel. Consequently, the shareholdings of Tata Steel and New Millennium Iron will be adjusted to 77.68% and 4.32% respectively. TSMC is developing iron ore deposits in Quebec and Newfoundland & Labrador in Canada.
On 27 October 2016, credit rating agency Brickwork Ratings revised Tata Steel Limited's credit rating to BWR AA from BWR AA+ for NCD and BWR AA- from BWR AA for the perpetual debt, with a negative outlook. In a statement, Brickwork Ratings said that a sudden change of guard at Tata Steel's holding company Tata Sons and Tata Group has not only heightened the management risk for Tata Steel, but also has exposed the company to uncertainty over continuity of critical decisions on cost cutting and deleveraging the Balance Sheet concerning the unprofitable UK operations and restructuring its European business. Brickwork Ratings further said that unless Tata Steel takes appropriate measures in this regard, it may lead to further deterioration in the financial profile of the company, as also a rating action.
On 28 November 2016, Tata Steel UK announced the signing of a Letter of Intent with Liberty House Group to enter into exclusive negotiations for the potential sale of its speciality steels business for an enterprise value of 100 million subject to due diligence and corporate approvals. The Letter of Intent covers several South Yorkshire-based assets including the Rotherham electric arc steelworks, the steel purifying facility at Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury, UK, and in Suzhou and Xi'an, China.
On 30 November 2016, Tata Steel announced the inauguration of its 55,000 tonne per annum (TPA) ferro-chrome plant in the Gopalpur Industrial Park in Ganjam district of Odisha.
On 7 December 2016, Tata Steel UK announced that it has reached an agreement with trade unions on a number of proposals that would structurally reduce risks and help secure a more sustainable future for its UK business. The company and trade unions have also agreed on the principle that subject to the structural de-risking and de-linking of the British Steel Pension Scheme fund from the business, Tata Steel UK will continue the existing blast furnace configuration in Port Talbot until 2021. Further, based on achieving the necessary financial performance and cash flows as per the transformation plan of the UK business, the company will continue to invest across the UK sites to enhance the competitive position of Tata Steel UK in the European steel industry.
On 7 December 2016, Tata Steel announced that its subsidiary, TM International Logistics (TMILL) has divested entire stake in its wholly owned step down subsidiary TM Harbour Services Private Limited (TMHSPL) to Adani Ports and Special Economic Zone Limited (APSEZ) for a total consideration of Rs 106 crore in an all cash deal. TMHSPL is engaged in the business of providing tug services at Dhamra Port and owns three tug boats.On 5 January 2017, Tata Steel inaugurated the second phase of Cold Rolling Mill (CRM) Complex BARA at its Jamshedpur unit. The phase II expansion of CRM BARA includes installation of 0.3 MnTPA hot rolled skin passing mill (HSPM) to meet the increased demand of Hot-Rolled, Pickled, Skin passed and Oiled products in the automotive sector for high-end customers. In order to cater to the input requirement of HSPM, the production capacity of the existing pickling line has also been increased to 0.68 MnTPA from the designed capacity of 0.5 MnTPA.
On 16 January 2017, Tata Steel announced that its Noamundi iron mine in Odisha conducted pilot launch of drone application in mine monitoring, thereby becoming the first mine in the country to introduce drones for mine monitoring.
On 25 January 2017, Tata Steel executed definitive agreements with Creative Port Development Private Limited (CPDPL) and their promoters for the proposed development of Subarnarekha port at Chaumukh village of Balasore district in Odisha. As per the agreements, Tata Steel will acquire majority equity stake in CPDPL, and the port development is envisaged through a wholly-owned subsidiary, Subarnarekha Port Private Limited (SPPL).
On 21 February 2017, Tata Steel announced that its Greenfield steel plant located in Kalinganagar Industrial Complex in Jajpur district of Odisha, has achieved yet another milestone with the hot metal production at its blast furnace crossing 2 million tonne on 19 February 2017. The blast furnace achieved the first million tonne production of hot metal on 9 October 2016.
On 28 February 2017, Tata Steel announced the completion of the commissioning of the ferro-chrome plant at Gopalpur Industrial Park in Ganjam district of Odisha. The plant has an installed capacity of 55,000 tonne per annum (TPA).
The Board of Directors of Tata Steel at its meeting held on 20 April 2017 approved issue of debt securities of up to Rs 9000 crore in one or more tranches. The funds will be primarily deployed towards re-financing the existing debt, capex/working capital requirements and general corporate purposes.
On 2 May 2017, Tata Steel UK announced the completion of the sale of its Speciality Steels business to Liberty House Group for a consideration of 100 million. The sale covers several South Yorkshire-based assets, including the electric arc steelworks and bar mill at Rotherham, the steel purifying facility in Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury, UK, and in Suzhou and Xi'an, China.
On 23 June 2017, Tata Steel sold 8.35 crore shares of Tata Motors to the Tata Group holding company Tata Sons at a price of Rs 452.80 per share (excluding brokerage and STT).
On 11 July 2017, Tata Steel announced that it divested its entire equity stake in a 50% joint venture, viz, Tata Elastron S.A. in favour to the joint venture partner Elastron S.A. for a total consideration of euro 0.368 million.
On 14 July 2017, Tata Steel announced that it became the first steel company to enter into a long-term tariff contract (LTTC) with Indian Railways. LTTC has been introduced by Indian Railways to establish long-term contracts with customers with guaranteed incremental revenue for Indian Railways.
On 1 August 2017, Tata Steel UK announced the completion of the sale of its 42-inch and 84-inch pipe mills, also known as the Submerged Arc Weld (SAW) mills, in Hartlepool to Liberty House Group. Earlier, Tata Steel UK announced on 11 July 2017 that it had signed a definitive sale agreement to sell its 42-inch and 84-inch pipe mills in Hartlepool to Liberty House Group.
On 20 September 2017, Tata Steel announced that it has signed a Memorandum of Understanding (MoU) with Germany's Thyssenkrupp AG to create a leading European steel enterprise by combining the flat steel businesses of the two companies in Europe and the steel mill services of the Thyssenkrupp group. The proposed 50:50 joint venture - Thyssenkrupp Tata Steel - would be focused on quality and technology leadership, and on the supply of premium and differentiated products to customers, with annual shipments of about 21 million tonnes of flat steel products. The joint venture would have a pro forma turnover of about Rs 15 billion per annum (Rs 115,000 crore) and about 48,000 employees spread across various locations. The joint venture would be headquartered in Amsterdam, Netherlands. The proposed combination of businesses would be formed through a non-cash transaction framework, based on fair valuation, where both shareholders would contribute debt and liabilities to achieve an equal shareholding in the venture.
On 11 October 2017, Tata Steel announced the expiry of the share purchase agreement for the acquisition of 100% equity stake in Brahmani River Pellets Limited (BRPL). Earlier, on 23 December 2016, Tata Steel had announced the execution of definitive agreements to acquire 100% equity shares of BRPL from Aryan Mining and Trading Corpn Private Limited and other companies in the Moorgate Industries Group (MIG). BRPL owns a 4 mtpa Pellet plant in Jajpur, Odisha and 4.7 mtpa iron ore beneficiation plant in Barbil, Odisha connected through a 220 KM underground slurry pipeline. On 11 October 2017, Tata Steel announced that it has acquired Rio Tinto's smelter technology and intellectual property rights required to operate the HIsarna process. HIsarna is a completely new technology in the steelmaking process which combines Tata Steel's cyclone converter furnace with Rio Tinto's smelter.
On 6 November 2017, Tata Steel announced that it has established India's largest Coke Dry Quenching (CDQ) facility, capable of handling 200 metric tonnes per hour, at its state-of-the-art Greenfield steel plant located at the Kalinganagar Industrial Complex in Jajpur district of Odisha. CDQ is a heat recovery system to cool the hot coke from coke ovens. It is one of the most renowned energy-efficient and eco-friendly facilities in steel production where hot coke removed from coke ovens at a temperature of approximately 1,000 x C is cooled and kept dry with inert gas and the resulting steam produced in a waste heat recovery boiler is used to generate electricity.
The Board of Directors of Tata Steel at its meeting held on 18 and 19 December 2017 approved the next phase of expansion of capacity at Kalinganagar, Odisha plant by 5 million tons per annum from 3 MTPA to 8 MTPA. The total capacity of Tata Steel India operations following the expansion will be 18 million tons per annum. The project will cost the company Rs 23500 crore and will be completed within 48 months. The Board also approved a rights issue for an amount not exceeding Rs 12800 crore for financing the expansion project, for de-leveraging the Balance Sheet and for general corporate purposes.
On 18 January 2018, Tata Steel announced the launch of two new products, Tata Aggreto and Tata Nirman, India's first branded LD slag products for applications in road, fly ash brick and clinker making.
On 19 January 2018, Tata Steel announced that the Executive Committee of the Board of the company at its meeting held on 19 January 2018 approved rights issue of equity shares up to Rs 12800 crore. The Committee approved simultaneous but unlinked issue of up to 15.53 crore fully paid-up ordinary shares not exceeding Rs 8000 crore and up to 7.76 crore partly paid-up ordinary shares not exceeding Rs 4800 crore. The rights issue of fully paid-up shares was priced at Rs 510 per share and the partly paid shares at Rs 615 per share. The rights entitlement ratio was fixed at 4 fully paid-up shares for every 25 shares and 2 partly paid shares for every 25 shares held on record date. On 19 January 2018, Tata Steel announced a successful dual tranche Reg S issuance of USD 1.3 billion of unsecured bonds in the international markets. The issue comprises USD 300 million 4.45 percent unsecured bonds due on 24 July 2023 and USD 1 billion 5.45 percent unsecured bonds due on 24 January 2028 by Abja Investment Co Pte Ltd, a wholly owned subsidiary of Tata Steel Incorporated in Singapore. The proceeds of the bonds will be used to refinance the offshore obligations of the company, which will help de-risk the balance sheet, enhance financial flexibility, diversify the investor base and improve the overall debt maturity profile.
On 2 February 2018, Tata Steel announced that it has concluded the acquisition of 74% equity stake in Bhubaneshwar Power Private Limited (BBPL) from JL Power Ventures Private Limited (JL Power). Tata Steel together with its 100% subsidiary TS Alloys already held 26% stake in BBPL. BBPL owns a 135 MW (2x67.5MW) thermal power plant at Anantapur Village in Cuttack District of Odisha. The acquisition of BBPL will allow Tata Steel to increase its captive source of power to meet its growing demand. Tata Steel had on 30 November 2017 executed definitive agreements to acquire 74% equity shares of Bhubaneshwar Power from JL Power Ventures for a consideration of Rs 255 crore. On 14 February 2018, West Bokaro division of Tata Steel commissioned the primary crushing plant 3 (PCP 3). PCP 3 has been set-up with an objective of augmenting coal beneficiation at the colliery.
In June 2018, the company had signed definitive agreements with thyssenkrupp to combine its steel businesses in Europe to create a 50:50 pan-European joint venture company focussing on customer centricity, technology and sustainability.
On October 18, 2018, T S Global Minerals Holdings Pte. Ltd. entered into an agreement with IMR Asia Holding Pte Ltd, a group company of IMR Metallurgical Resources AG, a global metals and mining group headquartered in Switzerland, to divest its entire stake in its wholly-owned step down subsidiary Black Ginger 461 Pty. Ltd. which in turn holds 64% in Sedibeng Iron ore Pty Ltd, South Africa, the operating company. The divestment was completed on February 18, 2019.
During the year 2018-19, the Company, on a consolidated basis spent Rs 9091 crore on capital projects across India, Europe and Canada largely towards essential sustenance, replacement and on-growth projects in India (Kalinganagar plant and Tata Steel BSL Limited), and in the Netherlands.
During the year under review, the Company through its wholly-owned subsidiary, Bamnipal Steel Limited (BNPL') acquired of controlling stake of 72.65% in Bhushan Steel Limited (renamed Tata Steel BSL Limited) (TSBSL), on May 15, 2018.
In January 2017, the Company entered into definitive agreement to acquire 51% equity stake in Creative Port Development Private Limited (CPDPL') for the development of Subarnarekha Port at Odisha through a wholly-owned subsidiary Subarnarekha Port Private Limited. On September 18, 2018, the Company completed the acquisition of 51% equity stake in CPDPL, a proposed greenfield port project.
On September 22, 2018, the Company, as a part of its strategy to grow in long products, executed definitive agreements for acquisition of steel business of Usha Martin Limited (UML'), a special steel and wire rope manufacturer, through a slump sale on a going concern basis. On October 24, 2018, the Company extended support for Tata Sponge Iron Ltd's entry into steel business and identified it as the strategic vehicle for acquisition of steel business of UML. On April 9, 2019, TSIL completed the acquisition of steel business undertaking including captive power plants, for a cash consideration of Rs 4094 crore, which is subject to further hold backs of Rs 640 crore, pending transfer of some of the assets including mines and certain land parcels.
The company have 220 subsidiaries and 50 associate companies (including 28 joint ventures) as on March 31, 2020.
During the year 2019-20, the Company and thyssenkrupp AG decided not to pursue the proposed transaction to form a joint venture to combine their steel businesses in Europe. The decision was taken after careful evaluation of the viability of the proposal in light of the feedback received from the European Commission ('EC'). Thereafter, on June 11, 2019, EC formally announced its decision to prohibit the proposed joint venture.
During the year under review, Tata Steel BSL Limited (TSBSL'), an indirect subsidiary of the Company, acquired controlling stake in Bhushan Energy Limited (now Angul Energy Limited) (BEL), approved by the National Company Law Tribunal (Principal Bench, New Delhi) vide its Order dated May 30, 2019 and consequently, BEL became a subsidiary of TSBSL effective from June 1, 2019.
The Company had 209 subsidiaries and 49 associate companies (including 28 joint ventures) as on March 31, 2021.
In FY 2020-21, the Company commissioned a 100 tonne-perannum integrated Graphene manufacturing plant which can be used in diverse sectors such as materials handling, textiles, packaging, etc.
In FY 2020-21, the Company transferred its holding in Tata Steel Special Economic Zone Limited, The Tata Pigments Limited, Jamipol Limited and, Nicco Jubilee Park Limited to Tata Steel Utilities and Infrastructure Services Limited, (Company's wholly-owned subsidiary) and its holding in Jamshedpur Continuous Annealing and Processing Company Private Limited, and Tata Bluescope Steel Private Limited to Tata
Steel Downstream Products Limited, (Company's whollyowned subsidiary).
During the year 2020-21, the Company developed 79 new products in India. It commercialized products such as, high stretch flangeability, higher radial fatigue life, heat treatable automotive steels, line-pipe steels with excellent low temperature impact toughness. For cold
rolled products segment, it received multiple Auto Original Equipment Manufacturers (OEM) approvals for CRDP780. It commercialised Fe500 CRS to be used in the construction sector. For coating segment, it entered into functional secondary coatings' market and got approval for lubrication-coated GA (T-COAT) in exposed panel application. It obtained approval for skin panel for passenger vehicles based upon bake-hardenable grade BH180 GA. In long products segment, it commercialised high strength, high ductility rebar grade-Fe500 SD, from New Bar Mill.
During the year 2020-21, 16 new products were launched in Europe, including major developments for engineering, packaging and construction markets. This launch includes TCCT Protact (Tata Steel Europe's polymer coated packaging steel brand) for aerosol
applications. It developed Magizinc 310 for solar panel frame applications, providing customers with a 25-year guarantee of corrosion performance in service. In the construction sector, it launched Colorcoat Urban Seam Façade, a self-supporting façade system, certified to meet stringent new fire regulations in the residential metal facades segment. Additionally, it extended offerings in high strength linepipe for offshore oil & gas applications, and commercialised a tubular solution for trailer landing legs, requiring tight tolerance control. Furthermore, the automotive sector extended and commercialised the advanced high strength in steel portfolio through additional routes to market. It launched the in-house digital Value Analysis & Value Engineering (VAVE) platform called 'e-DRIVE'. It transformed supply chain experience for its customers through its digital solution COMPASS which provides a digital platform to customers and OTIF (On Time in Full') to track inventory. The Company through its subsidiary, Tata Steel BSL Limited, launched new coated brands such as GalvaRoS (GPRS), Galvanova (GL) and Colornova (CC) for entry into new product & market segments and promote sustainability. It collaborated with the World Steel Association to support them in their efforts to improve steel intensity in construction.
On August 18, 2021, the Company commissioned new 0.5 MnTPA Steel Recycling Plant at Rohtak, Haryana with Aarti Green Tech Limited on Build-Own-Operate' basis.
On September 30, 2021, T S Global Holdings Pte. Ltd. (TSGH), an indirect wholly owned subsidiary of Tata Steel Limited executed agreements with Toptip Holding Pte. Ltd. and divested entire stake held in NatSteel Holdings Pte. Ltd., for an equity value of US$ 172 million.
During the year 2021-22, the Company developed 62 new products in India. In Europe, 13 new products were launched during the year, which included major developments for automotive, engineering, and construction markets in the Netherlands and construction and energy markets in the United Kingdom.
During the year 2021-22, Company sold stake in Singapore operations of NatSteel Holdings Pte. Ltd. (NSH), holding wires business in Thailand (Siam Industrial Wires), which was retained by Tata Steel as a part of portfolio.
In FY 2022, Board of Directors of the Company, at their meeting held on April 25, 2019 amalgamated Bamnipal Steel Limited and Tata Steel BSL Limited (TSBSL), into and with the Company by way of a Composite Scheme of Amalgamation, which was approved by Shareholders of the Company on March 26, 2021. The Company filed the Company Scheme Petition' with the Hon'ble NCLT, Mumbai Bench, to sanction the Scheme, which became effective from November 11, 2021. On merger, the plants and supporting units of erstwhile Tata Steel BSL will hence be known as Tata Steel Meramandali.
On January 31, 2022, Tata Steel Long Products Limited (TSLP), a listed subsidiary of Company acquired 93.71% stake in 1 MnTPA Neelachal Ispat Nigam Limited (NINL) for Kalinganagar Steel Plant. On March 10, 2022, the Company and TSLP executed a Share Sale and Purchase Agreement (SSPA) with NINL and its principle shareholders and acquired the said stake for a total consideration of Rs. 12,100 crore.
On April 11, 2022, the Company (through Tata Steel Mining Limited (TSML), wholly-owned subsidiary of Tata Steel, acquired 90% equity stake in Rohit Ferro-Tech Limited (RFT) and balance 10% stake was acquired by the assenting financial creditors of RFT towards conversion of a portion of their loans. It increased equity stake in Medica TS Hospital Private Limited (MTSHPL), a JV of Tata Steel, and became subsidiary of the Company effective from January 7, 2022.
On February 28, 2022, the Company through Tata Steel Advanced Materials Limited (TSAML), wholly owned subsidiary, acquired 90% equity stake in Ceramat Private Limited, which was completed on March 16, 2022 for a cash consideration of Rs. 90,000.
On March 30, 2022, Company executed an Asset Transfer Agreement with Stork Ferro and Mineral Industries Private Limited and acquired itemized assets to produce ferro alloys for a cash consideration of Rs. 155 crore.
On April 5, 2022, the Company had acquired 50% equity stake of SAIL held in S&T Mining Company Limited, which was completed on April 11, 2022 and consequently, S&T Mining ceased to be joint venture of the Company and became its wholly-owned subsidiary.
In FY 2022, Company transferred its entire shareholdings in Tata Steel Special Economic Zone Limited, Adityapur Toll Bridge Company Limited, Himalaya Steel Mill Services Private Limited, Tata Pigments Ltd., Jamipol Limited, Nicco Jubilee Park Limited to Tata Steel Utilities and Infrastructure Services Limited (Company's wholly-owned subsidiary), and entire shareholding in Tata Steel Advanced Materials Limited (formerly Tata Steel Odisha Limited) to Tata Steel Downstream Products Limited (Company's wholly-owned subsidiary).
During the year 2022, the Company launched niche Lifting & Excavation (L&E) products by developing S700MC, first of its kind in India, with guaranteed toughness at -40°C, primarily used in telescopic boom application, which led to import substitution and customer delight. It developed Fe550SD with higher strength and ductility and commercialized it in size range of 6mm to 25mm. Also, higher sizes of high strength rebars of Fe600HD and Fe550D were developed to cater to niche requirements in various projects in areas of construction and infrastructure. In order to cater to the new requirements of high strength wire rods for LRPC and spring application, new grades such as HC82Cr[LR HT], HC82BCr[SH HT], PC300K were developed. In Europe, 13 new products were launched during the year. It introduced new offerings of nickle-plated steel for application in rechargeable batteries used in Electric Vehicles. In the construction sector, it launched products which extended the capability of linepipe offerings for offshore Oil & Gas application in the X65/X70 grade range and improved the sustainability of Contiflo range of precision tubes. It also introduced Sinusoidal Roof Panel which is the future-proof solution for asbestos replacement market. In the engineering sector, the Company has launched two additional hot-rolled grades - 27MnB5 and 38MnB5, to strengthen its heat treatable, manganese boron portfolio. In the United Kingdom, it commercialized the Colorcoat High Reflect Liner A+ organic coated steel product, thereby catering to customer requirement in construction sector.
During FY 2021-22, the Company conducted 20 new trials were across the plant to establish new operating paradigm (Polymer usage to reduce coal blend cost and usage of alternate fluxes in Blast Furnaces for improved productivity. It had developed 29 new products out of which the 3 first time products in India viz., Lead free steel, PC300k - Alloy LRPC.
On September 22, 2022, Tata Steel Long Products Ltd (TSLP) was merged into and with Company through Scheme of amalgamation effective from 04 July, 2022 with share exchange ratio of 67 fully paid-up equity shares of nominal value of Re 1/- each of the Company for every 10 fully paid-up equity shares of nominal value of Rs 10/- each held by the public shareholders of TSLP. i.e., 67:10.
The Tinplate Company of India Limited was amalgamated into and with the Company effective from 04 July, 2022 with share exchange ratio of 33 fully paid-up equity shares of nominal value of Re 1/- each of the Company for every 10 fully paid-up equity shares of nominal value of Rs 10/- each held by the public shareholders of TCIL. i.e., 33:10.
Tata Metaliks Limited was amalgamated into and with the Company effective from 04 July, 2022 with a share exchange ratio of 79 fully paid-up equity shares of nominal value of Re 1/- each of the Company for every 10 fully paid-up equity shares of nominal value of Rs. 10/- each held by the public shareholders of TML. i.e., 79:10.
TRF Limited was merged into and with the Company effective from 04 July, 2022 with a share exchange ratio of 17 fully paid-up equity shares of nominal value of Re 1/- each of the Company for every 10 fully paid-up equity shares of nominal value of Rs. 10/- each held by the public shareholders of TRF. i.e., 17:10.
The Company through Tata Steel Mining Limited (TSML), a wholly-owned subsidiary, acquired equity stake in Rohit Ferro-Tech Limited (RFT) and RFT became a wholly-owned subsidiary of TSML. As a result of acquisition, RFT was amalgamated with TSML effective on July 7, 2022.
On July 4, 2022, the Company through its subsidiary Tata Steel Long Products Limited (TSLP) acquired 93.71% stake in Neelachal Ispat Nigam Limited (NINL) for an aggregate consideration of Rs. 12,100 Crore and consequently, NINL became a step-down subsidiary of the Company. The Company also acquired 75.94% equity stake of Tata Steel Advanced Materials Limited (TSAML) from Tata Steel Downstream Products Limited, for an aggregate amount of Rs 54.69 crore and post the said acquisition, TSAML became a direct wholly-owned subsidiary of Company.
During 2023, the Company launched Carbon Lite, a low carbon emission steel solution, offering the potential for up to 100% reduction in CO2 intensity to customers in the UK and the Netherlands, launched Tata Aggreto and Tata Nirman, India's 1st branded steel slag products. It launched new off-site manufactured construction solutions with Catnic Matrix and Trimawall Fast-Fit. In the renewables sector, it launched Magizinc for Solar S450 product. In the Automotive segment, it launched the DP600-GI Hyperform product for OEMs. Further, the launch of C45 medium carbon grade led to diversification of portfolio.
Tata Steel Ltd
Company History
Tata Steel is one of the world's largest steel companies with a global annual crude steel production capacity of 34 million tonnes per annum (MnTPA). The Company has presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products. It operate manufacturing units in 26 countries and a commercial presence in over 50 countries. Tata Steel is the second largest steel producer in Europe with a crude steel production capacity of over 12.1 million tonnes per annum. It offers a broad range of steel products including a portfolio of high value added downstream products such as hot rolled, cold rolled, coated steel, rebars, wire rods, tubes and wires. It is a diversified steel producer with major operations in India, Europe and South East Asia.
The company also involves in prospecting, discovering, and mining iron ore, coal, ferro alloys, and other minerals; designing and manufacturing plants and equipment for steel, oil and natural gas, energy and power, mining, railways, ports, aviation, and space industries; and agricultural implements. Further, they offers alumina, dolomite, and monolithic refractories, as well as silica refractories for coke ovens and the glass industry; manufactures bricks; sponge iron lumps and fines; and rolls for applications in integrated steel plants, power plants, and government mint, as well as paper, textile, and food processing sectors.
Tata Steel's operations are grouped under six Strategic Business Units include Bearings Division, Ferro Alloys and Minerals Division, Agrico Division, Tata Growth Shop (TGS), Tubes Division and Wire Division. They have introduced several branded steel products, including Tata Steelium (the world's first branded Cold Rolled Steel), Tata Shaktee (Galvanised Corrugated Sheets), Tata Tiscon (rebars), Tata Pipes, Tata Bearings, Tata Structural, Tata Agrico (hand tools and implements) and Tata Wiron (galvanised wire products).
Tata Steel Ltd was incorporated in the year 1907 with the name Tata Iron & Steel Company Ltd. In the year 1911, the company commenced the operations of the first Blast Furnace or the 'A' Blast Furnace. In December 2, 1911, the fist collieries were obtained and the first cast of pig iron was produced. In they ear 1912, the first ingot of steel rolled out of the Sakchi Plant and in October 1912, the Bar Mills started their commercial production. Also, the B Blast Furnace became operational during the year. In the year 1918, India's first steel (coke) plant was established in Jamshedpur.
In the year 1925, the New Rail Mill, Merchant Mill and Sheet Mill went into operation. In the year 1931, they opened an apprentice shop. In the year 1941, they started manufacture of special steel for war purpose. They produced a wide variety of special steels required for defense purposes including armoured cars called 'Tatanagars'. In the year 1943, Howrah Bridge was constructed from steel supplied by the company. In the year 1955, the company signed an agreement with Kaiser Engineers for two million tonne expansion programme. In the year 1980, they started the first phase of the four-phased modernisation programme.
In the year 1984, the company introduced BOF steelmaking, which could produce liquid steel in forty five minutes when it took the old open hearth furnaces, close to five hundred under the first phase of modernisation. During the year 1984-85, Indian Tubes Company Ltd was amalgamated with the company. The second phase of modernisation was in the year 1988, which concentrated largely on the iron-making area. During the year 1993-94, the company commissioned the Hot Strip Mill with the capacity of one million tonne per annum which was the company's third modernisation programme. In the year 2000, the company inaugurated the 1.2 million tonnes Cold Rolling Mill Complex as a first step towards expansion and modernisation.
In January 2, 2004, The Indian Steel Wire Products Company was acquired at Jamshedpur. In June 4, 2005, the company signed an MoU for setting up a five-million tonne per annum Greenfield integrated steel plant in the Jagdalpur district of Chhattisgarh. In July 2005, they formed a joint venture with Blue Scope Steel Ltd, Australia for quoted steel manufacturing facility. In July 21, 2005, the company acquired stakes in the Australian coal mines. In August 2005, the company set up Met coke manufacturing facility in West Bengal.
In September 19, 2005, the company signed an MoU with the Government of Jharkhand for setting up a 12-million tonnes per annum Greenfield integrated steel plant in the Manoharpur and Chandil areas of Jharkhand. In December 14, 2005, they signed definite agreement with Cementhai Holding Company to acquire shares and invest equity in the Milennium Steel, Thailand. Also, the name of the company was changed from Tata Iron & Steel Company Ltd to Tata Steel Ltd with effect from May 19, 2005.
In the year 2006, the company inaugurated India's first automated Jigging and Hydrocyclone Plant, with a 1.6 MTPA throughput, at Noamundi Iron Mines. They commenced the work on Ferro Chrome Plant by acquiring Rawnet Ferrous Industries Pvt Ltd, in Orissa, a Ferro Alloys plant with a capacity of 50,000 tpa of high carbon chrome. They set up a Joint Venture Company with Larsen and Toubro Ltd for developing an all weather modern deep water port in the state of Orissa on the Eastern Coast of India. Tata NYK Shipping Pte Ltd, a joint venture shipping company between the company and Nippon Yusen Kabushiki Kaisha was set up to cater to dry and break bulk cargo and also the shipping activities. In August 7, 2006, the company inaugurated the Roll Forming and Pre-Engineered Building Facilities of Tata Bluescope Ltd at Pune.
In April 2, 2007, the company acquired Corus -- Europe's second largest steel producer for consideration of USD 12 Billion, which made Tata Steel the sixth largest steel producer globally and the second-most geographically diversified steel producer in the world. They also entered into an agreement for acquiring controlling equity stake in two rolling mills located in Haiphorg, Vietnam. Also, they signed a joint venture agreement with Riversdale Mining for Mozambique coal project. In December 2007, the company and SODEMI (state owned company for mineral development) entered into joint venture agreement for the development of Mount Nimba Iron ore deposits in Ivory Coast (West Africa).
In January 2008, the company and the members of the Al Bahja Group, a leading business house of Oman entered into a Joint Venture Agreement for the development of the Uyun Limestone deposits at Salalah in the Sultanate of Oman. Also, they entered an agreement with Steel Authority of India Ltd (SAIL) to establish a 50:50 joint venture company for coal mining in India. In February 2008, they opened their fourth retail outlet, 'steeljunction' at Behala.
During the year 2008-09, the company completed the expansion of crude steel capacity to 6.8 mtpa as part of their expansion programme. Also, they commissioned Sinter Plant No. 4, the 'H' Blast Furnace and the Continuous Caster No. 3 at LD Shop-1 during this expansion phase. In June 16, 2008, the company and their wholly owned subsidiary, Rawmet Ferrous Industries Ltd entered into an agreement with Jasper Industries Pvt Ltd for setting up a coal based power plant of 2 X 67.5 MW capacity in Orissa.
In September 2008, the company through their subsidiaries signed a Heads of Agreement memorandum with New Millennium Capital Corporation (NML), a Canadian listed mining company aiming to develop iron ore projects in Northern Quebec, Labrador and Newfoundland provinces. As part of the restructuring of the overseas holdings, the company transferred their stake in Tata Steel (Thailand) Public Company Ltd to Tata Steel Global Holdings Pte Ltd. The company subscribed 35,88,022 rights shares of Tayo Rolls Ltd and consequently, Tayo Rolls Ltd has become a subsidiary of the Company with effect from December 01, 2008.
In October 22, 2009, the company and Mineral and Metal Trading Company Ltd signed an agreement to establish a 74:26 joint venture company for acquiring, development and operation of mines and processing of minerals and metals.
Hooghly Met Coke and Power Company Ltd was amalgamated with the company with effect from April 1, 2009. The construction of a warehousing shed and a building for a power receiving sub-station had started at one corner of the plant area. They increased the production capacity of Crude Steel from 61,10,000 tonnes to 68,00,000 tonnes, Saleable Steel from 58,40,000 tonnes to 65,00,000 tonnes and Welded Steel Tubes from 2,84,000 tonnes to 2,88,000 tonnes.
In October 2009, the company entered into agreement with MMTC Limited, a Central Government undertaking and established a joint venture company for acquiring, developing and operating mines and processing of minerals and metals. In November 2009, they signed a Joint Venture Agreement with NML, to advance the development of the DSO Project. In January 2010, the company entered into an MoU with NMDC Ltd, to explore the possibility of acquisition, exploration and development of mines, extraction and processing of minerals, setting up integrated steel plants and other businesses of mutual interest.
In April 6, 2010, the company entered in an MoU with Nippon Steel Corporation (NSC), Japan for setting up a Continuous Annealing and Processing Line at Jamshedpur, India with 0.6 mtpa capacity. In June 2010, the company subscribed to a private placement of Canadian $20 million by NML pursuant to which Tata Steel Global Minerals Holding Pte Ltd holds a 27.4% stake in NML.
In June 2010, the company and Tata Metaliks Ltd entered into an MoU with the Government of Karnataka for setting up an integrated steel plant of 3 mtpa in Agadi and Boodagatti villages of Haveri District, Karnataka. In August 2010, the company's subsidiary Corus UK Ltd and Sahaviriya Steel Industries Public Company Ltd (SSI) signed an MOU which sets out the scope of a potential transaction whereby SSI would acquire from Corus the Teesside Cast Products (TCP) business in a transaction valued at approximately USD 500 million.
Tinplate Company of India Ltd became a subsidiary of the company with effect from April 01, 2011, consequent to increase in the company's shareholding in the Tinplate Company of India Ltd from 42.88% to 59.45%. This increase is due to automatic and compulsory conversion of 3% fully convertible debentures of Rs 100 each held by the company into equity shares on April 01, 2011.
In April 2011, the company and Krosaki Harima Corporation (KHC) signed definitive agreements to induct KHC as a strategic partner in Tata Refractories Ltd (TRL). Under this arrangement, KHC will acquire 51% equity stake out of TSL's current 77.46% stake in TRL. As per the scheme of amalgamation, Centennial Steel Company Ltd, a wholly owned subsidiary company was amalgamated with the Company with effect from September 27, 2011.
In January 2012, the company secured a contract from Siemens Wind Power to supply 25,000 tones of profiled steel plate for wind towers. Tata Steel will deliver 25,000 tones of profiled plate (cut into the desired shape) between April and September 2012.
On 19 April 2012, Tata Steel announced that it has been awarded a high eight-figure US dollar contract to supply pipe for Enterprise Products Partners L.P.'s new crude oil export pipeline in the Gulf of Mexico's Keathley Canyon area. The contract will see Tata Steel deliver more than 48,000 metric tonnes of steel pipe from its 42-inch mill in Hartlepool, England for the Lucius Development Project, which has the capacity to produce in excess of 80,000 barrels of oil per day.
On 22 June 2012, Tata Steel announced the completion of an important strategic project that makes it only the second vertically integrated producer of grain oriented electrical steels in the European Union.On 2 November 2012, Tata Steel unveiled 'Tata Astrum', a new brand of its Hot Rolled products range at an event in New Delhi. The Astrum product range will find application in the Automotive, Earth Moving Equipment, Railways, Fabrication, Construction and Industrial Machinery segments.
On 7 November 2012, Tata Steel announced the opening its second aerospace service centre in China at Xi'an. The new facility in Xi'an complements its existing operation in Suzhou, opened in 2009, and aims to serve the growing demand for aerospace materials in the region.
On 12 February 2013, Tata Steel announced that it has restarted its second blast furnace at the Port Talbot steelworks in the UK following the completion of a 185 million rebuilding project. The state-of-the-art new furnace is more efficient and will allow Tata Steel to continue to meet the demanding requirements of UK and European manufacturing industries.
On 19 February 2013, Tata Steel announced that it has been granted the core supplier status by French car manufacturer PSA Peugeot Citro. On 10 June 2013, Tata Steel announced the successful completion of an upgrade of its corrosion-resistant coating line in South Wales, UK to improve and expand the company's range of high-value, high-formability automotive steels.
On 19 June 2013, Tata Steel announced that it has secured a long-term agreement to supply aerospace steels to Safran Group, the world-class manufacturer of aircraft, rocket engines, propulsion systems and aircraft equipment. The initial value of the contract is in excess of 9 million per year, with prospects for this to grow during the life of the agreement.
On 8 August 2013, Tata Steel announced that it won an order to manufacture 60,000 tonnes of high-quality rail for a new high-speed line linking the two holy cities of Mecca and Medina in Saudi Arabia.
On 21 October 2013, Tata Steel announced that has won a contract to supply rail track and steel sleeper plate to Network Rail for at least five years. Network Rail, the company set up to operate and maintain Britain's rail infrastructure, has chosen to source more than 95% of its rail from Tata Steel until 2019, with the option to extend this until 2024.
On 22 October 2013, Tata Steel announced that it will build a Vacuum Induction Melting (VIM) furnace at its Stocksbridge site in South Yorkshire, UK, to enable it to tap into new market opportunities and develop innovative new products for the aerospace and oil & gas industries. The cutting-edge VIM furnace will allow Tata Steel's Speciality Steels business, which already supplies steel to aircraft engine and airframe makers, to further develop relationships with its customers and expand its product portfolio.
On 23 October 2013, Tata Steel announced the commissioning of a new heat treatment plant at its Hayange plant in the Lorraine region of France. The unit will produce train track capable of lasting up to three times longer than standard rail. The new facility will more than double the annual output of heat-treated rail from 55,000 to 125,000 tonnes. On 7 November 2013, Tata Steel UK announced the launch of dent-resistant steel for car makers in Britain that helps to further reduce vehicle weight.
On 8 January 2014, Tata Steel announced that it has won a two-year contract to supply more than 200,000 tonnes of track to French rail operator SNCF. The contract will see Tata Steel supply the majority of SNCF's rail requirements in lengths of up to 108 metres from its plant in Hayange, Northern France.
On 16 January 2014, Tata Steel announced the launch of India's First Ferro Manganese brand TATA FERROMAG and India's first Ferro Chrome brand TATA TISCROME. Tata Steel will sell these two branded products in Gujarat, Maharashtra, NCR, Rajasthan, Odisha and West Bengal, which are the major consumption centres. Ferro Chrome and Ferro Manganese are Ferroalloys widely used as alloying agents in production of Carbon & Stainless steel. Ferro Chrome provides corrosion resistance thus increasing the life of stainless steel, while Ferro Manganese provides the necessary toughness and hardness to steel.
On 8 April 2014, Tata Steel announced that New Zealand's Steel and Tube Ltd has agreed to acquire Tata Steel International (Australasia) Ltd. for a cash consideration of NZ$27.5 million. Tata Steel International Australasia Ltd. (TSIAL) is a New Zealand based company which is the leading supplier of stainless steel, engineering steels, and composite floor decks to the New Zealand and Pacific Island markets. The division also offers ex-mill sales of colour coated and packaging steels, railway tracks, and structural sections.
On 28 April 2014, Tata Steel announced the commissioning of new Coke Oven Battery at its Jamshedpur steel manufacturing facility, thereby making the steel facility self-sufficient in coke requirement for stable operation.
On 27 June 2014, Tata Steel Europe officially inaugurated new slitting line at its Ruhr-based Steel Service Center in Gelsenkirchen, Germany. The new slitting line is specially geared up to process advanced and ultra high-strength steels, which are used to manufacture demanding automotive applications used in chassis, suspension, wheels and seats. They include advanced high strength steels with unique forming capabilities for chassis and cold rolled advanced high strength steels for light-weight seat components.
On 1 July 2014, Tata Steel announced restructuring proposals to improve the competitiveness of its South Wales, UK steelmaking business. The proposed changes would enable the UK Strip Products business to compete in Europe's lower market demand era by reducing costs equivalent to the loss of about 400 jobs in Port Talbot.
On 25 July 2014, Tata Steel announced a successful dual tranche Reg S issuance of USD 1.5 billion of unsecured bonds in the international markets. It was Tata Steel's debut US dollar bond issuance and a part of the company's long term financing strategy to raise capital internationally.
On 4 August 2014, Tata Steel announced the launch of an innovative new product for automotive manufacturers in response to market requirements for stronger and lighter steels.
On 11 August 2014, Tata Steel announced that it has signed a series of contracts with Subsea 7 - one of the world's leading contractors in engineering, construction and subsea services to the offshore industry - to supply undersea pipes to four separate North Sea projects.
On 1 September 2014, Jamshedpur Continuous Annealing and Processing Company Private Limited (JCAPCPL) announced the inauguration of India's first Continuous Annealing & Processing Line, a 600,000 tonnes per annum facility for manufacturing high-quality cold rolled sheets exclusively for the automotive industry, including outer panels and high tensile sheets. JCAPCPL is a 51:49 Joint Venture between Tata Steel Ltd and Nippon Steel & Sumitomo Metal Corporation (NSSMC). JCAPCPL will source steel from Tata Steel.
On 18 September 2014, Tata Steel announced that it has opened a new finishing line at its IJmuiden steelworks in the Netherlands to strengthen the supply of high-value steels to the automotive sector and other markets. Tata Steel invested 12 million euros in Finishing Line 32, which will process up to 400,000 tonnes of galvanised (corrosion resistant) steel coil a year. The opening of the new finishing line has also freed up Tata Steel's Cold Rolling Plant in IJmuiden, which was responsible for finishing galvanised steel. This will enable the company to increase the supply of uncoated cold rolled steel to customers. The new finishing line follows the opening in IJmuiden of the third hot-dip galvanising line in 2009.
On 13 November 2014, Tata Steel announced that it has completed a major upgrade of the Hot Strip Mill at its Port Talbot steelworks in South Wales, UK enabling it to further improve the quality of its steel products used in a wide range of markets, including automotive, engineering, construction and domestic appliances. The upgrade of the Hot Strip Mill follows investments totalling more than 250 million in state-of-the-art steelmaking and processing technology at the South Wales operations.On 17 November 2014, Tata Steel announced that it has commenced commercial production of GGBS, world's most sustainable building material. GGBS is used as a part replacement of cement and has been the solution for high strength, cost effective concrete in the developed economies for last 50 years.
On 3 February 2015, Tata Steel announced that it has reached a significant milestone in the transformation of its European steel portfolio with the launch of the 100th new product in its revitalised new product development programme. On 2 February 2015, Tata Steel launched an innovative, stronger structural steel product which can reduce the construction time of new buildings.
On 9 February 2015, Tata Steel announced the signing of a prestigious contract to supply highly wear-resistant rail for the Crossrail project beneath the heart of London. Tata Steel said at that time that it had already commenced deliveries to the Crossrail project, and will ultimately supply the project with more than 57 km of its heat treated, wear-resistant rail. In total 7,000 tonnes of Tata Steel rail will be used to create one of Europe's largest railway and infrastructure projects.
On 1 April 2015, Tata Steel announced that it has completed the acquisition from SSAB of Sweden of two service centres in Halmstad, Sweden and Naantali, Finland as well as the entire remaining 50% stake in Norsk St l Tynnplater AS, another strip products service centre based in Frederikstad, Norway. The service centres offer cutting-to-length, slitting and recoiling services to customers in the automotive, construction and electrical supplies industries, as well as in heavy and light engineering.
On 1 April 2015, Tata Steel announced that it has divested its entire stake in Lanka Special Steels Limited (LSSL) to E.B. Creasy & Company PLC (EBCC) for a total consideration of LKR 433 million (around Rs 20.4 crore) in an all cash deal. LSSL was a wholly owned subsidiary of Tata Steel incorporated in Sri Lanka. It is engaged in the business of manufacturing and supplying hot dip galvanized wire and nail wire with an installed capacity of 14,400 metric tonnes per annum. It had an annual turnover of LKR 1,569 million (Rs 74.0 crore) in FY 14.
On 7 April 2015, Tata Steel announced that it has completed a series of investments at its Steelpark site at Wednesfield in the West Midlands that has strengthened the site's position as the UK's largest steel processing centre. The start-up of a further multi-strand blanking line has completed the expansion of Steelpark's new Light Gauge Service Centre, which operates cut-to-length, blanking and slitting lines processing hot rolled, cold rolled and galvanized steel coils. On 14 June 2015, Tata Steel UK announced that it has launched a new initiative in its efforts to resolve the pension dispute with its UK trade unions. The company has approached Acas (Advisory, Conciliation and Arbitration Service) to help facilitate the next phase in talks between the parties.
On 1 July 2015, Tata Steel announced that the European Union (EU) has agreed to contribute 7.4 million euro towards testing a groundbreaking new iron production process being developed at Tata Steel's IJmuiden steelworks in the Netherlands. The six-month test campaign of the HIsarna pilot plant in 2016 will establish whether the new technology can produce molten iron in a stable way over a sustained period of time.
On 5 August 2015, Tata Steel announced that negotiations about the potential sale of its European long products business and associated distribution facilities to Klesch Group have been discontinued. The company was in talks with Klesch following the signing of a memorandum of understanding in October 2014.
Tata Steel's Greenfield project at Kalinganagar in the state of Odisha achieved a major milestone on 4 September 2015 with start of coke production from its Coke Ovens. The heating of Coke Ovens was started on 19 May 2015.
On 20 October 2015, Tata Steel's Long Products Europe business announced proposals to stop production of steel plate. The decision was made in response to a shift in market conditions caused by a flood of cheap imports, particularly from China, a strong pound and high electricity costs.
On 28 October 2015, Tata Steel announced the opening of its new UK research centre at the University of Warwick's Science Park. The opening marks the first phase of Tata Steel's relocation of its UK R&D work to the University of Warwick campus.
On 18 November 2015, Tata Steel unveiled plans to create one of the world's largest solar energy projects of its kind in the Netherlands. The company said at that time that it will mount 80,000 solar panels on the factory roofs at its IJmuiden steelworks in Netherlands.
Tata Steel announced that its Kalinganagar steel plant was dedicated to Odisha on 18 November 2015. The Kalinganagar steel plant is the largest single-location greenfield steel project in India. The first phase (3 MnTPA) of 6 MnTPA will produce world-class flat, lighter, high-tensile strength steel and will augment Tata Steel's Indian production to around 13 MnTPA of crude steel in India.
T S Global Holdings Pte Ltd. (TSGH), a subsidiary of Tata Steel incorporated in Singapore, executed agreements on 2 December 2015 for loan facilities of US$1.5 billion comprising a 5 year loan of US$750 million and a 6 year loan of US$750 million. The proceeds of this loan will be used to repay existing term loan facilities in TSGH.
On 3 December 2015, Tata Steel announced that its Long Products Europe business will continue to supply French rail operator SNCF for at least five more years after a new deal was signed. Tata Steel will supply the bulk of SNCF's 750,000 tonne requirements of high-quality rail over the duration of the renewed contract in lengths of up to 108 metres from its Hayange facility.
On 22 December 2015, Tata Steel UK announced the signing of a letter of intent with Greybull Capital to enter exclusive negotiations for the potential sale of its Long Products Europe business. On 18 January 2016, Tata Steel UK announced cost-saving proposals to improve the competitiveness of its UK business.
On 22 March 2016, Tata Steel announced the first despatch of Tata Ferroshots from its Kalinganagar steel plant. The product was commercially launched in India for the first time. The end use of Tata Ferroshots is in electric arc furnaces, induction furnaces, cupolas, basic oxygen furnaces and foundries as a replacement of pig iron, scrap or DRI.
On 24 March 2016, Tata Steel UK announced that it has reached an agreement to sell its Clydebridge and Dalzell steel facilities in Scotland. The deal involves the sale of the two plants to the Scottish Government which would then sell them on to Liberty House. The Dalzell plate mill transforms a semi-finished steel slab into a steel plate, while the Clydebridge facility processes steel plate using a quench and tempering technique.
On 29 March 2016, Tata Steel board reviewed the performance of the European business of the company, more specifically, of Tata Steel UK. Following the strategic view taken by the Tata Steel board regarding the UK business, the Tata Steel board advised the board of its European holding company i.e. Tata Steel Europe, to explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts.
On 11 April 2016, Tata Steel Europe formally commenced the process of divestment of its entire shareholding in its subsidiary Tata Steel UK. On the same day, Tata Steel UK announced the signing of an agreement to sell its long products Europe business to the family investment office, Greybull Capital. The sale for a nominal consideration, would be in exchange for Greybull Capital taking on the whole of the business, including assets and relevant liabilities, and securing an appropriate funding package. The sale covers several UK-based assets including the Scunthorpe steelworks, two mills in Teesside, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities, as well as a mill in northern France.
On 9 May 2016, the Board of Tata Steel Europe announced that seven expressions of interest submitted for Tata Steel's UK business have been immediately taken forward to the next stage of the sale process. In the next phase of the sales process the progressing interested parties will be given access to further business information and management team presentations in order for them to rapidly progress their interest to a binding stage.On 17 May 2016, Tata Steel announced that it has decided not to go ahead with the proposed merger of Tata Metaliks Limited and Tata Metaliks DI Pipes Limited with Tata Steel. The Scheme of Amalgamation between Tata Metaliks Limited and Tata Metaliks DI Pipes Limited with Tata Steel was earlier recommended by the Committee of Directors of Tata Steel in April 2013 and approved by the company's shareholders on in May 2014. The decision not to go ahead with the proposed merger was taken due to inordinate delay in obtaining requisite regulatory and statutory approvals along with significant dilution in the intended synergies that were envisaged in April 2013. Tata Metaliks is a subsidiary of Tata Steel. On 14 September 2016, Tata Steel announced that its Kalinganagar, Odisha plant achieved yet another milestone with the flagging off of the first hot rolled steel export rake from the plant.
On 27 October 2016, Tata Steel announced that Government of Quebec has joined as a strategic equity partner in its Canadian iron ore mining venture Tata Steel Minerals Canada (TSMC). TSMC together with its parent companies signed definite agreements for concluding investments of C$ 125 million as equity and C$50 million as debt with Government of Quebec's investment entities, Resources Quebec (RQ) and Investment Quebec (IQ) respectively, totaling C$ 175 million. The investment will result in an 18% equity stake for RQ in TSMC in line with the carrying value of the investment in Canadian iron ore assets for Tata Steel. Consequently, the shareholdings of Tata Steel and New Millennium Iron will be adjusted to 77.68% and 4.32% respectively. TSMC is developing iron ore deposits in Quebec and Newfoundland & Labrador in Canada.
On 27 October 2016, credit rating agency Brickwork Ratings revised Tata Steel Limited's credit rating to BWR AA from BWR AA+ for NCD and BWR AA- from BWR AA for the perpetual debt, with a negative outlook. In a statement, Brickwork Ratings said that a sudden change of guard at Tata Steel's holding company Tata Sons and Tata Group has not only heightened the management risk for Tata Steel, but also has exposed the company to uncertainty over continuity of critical decisions on cost cutting and deleveraging the Balance Sheet concerning the unprofitable UK operations and restructuring its European business. Brickwork Ratings further said that unless Tata Steel takes appropriate measures in this regard, it may lead to further deterioration in the financial profile of the company, as also a rating action.
On 28 November 2016, Tata Steel UK announced the signing of a Letter of Intent with Liberty House Group to enter into exclusive negotiations for the potential sale of its speciality steels business for an enterprise value of 100 million subject to due diligence and corporate approvals. The Letter of Intent covers several South Yorkshire-based assets including the Rotherham electric arc steelworks, the steel purifying facility at Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury, UK, and in Suzhou and Xi'an, China.
On 30 November 2016, Tata Steel announced the inauguration of its 55,000 tonne per annum (TPA) ferro-chrome plant in the Gopalpur Industrial Park in Ganjam district of Odisha.
On 7 December 2016, Tata Steel UK announced that it has reached an agreement with trade unions on a number of proposals that would structurally reduce risks and help secure a more sustainable future for its UK business. The company and trade unions have also agreed on the principle that subject to the structural de-risking and de-linking of the British Steel Pension Scheme fund from the business, Tata Steel UK will continue the existing blast furnace configuration in Port Talbot until 2021. Further, based on achieving the necessary financial performance and cash flows as per the transformation plan of the UK business, the company will continue to invest across the UK sites to enhance the competitive position of Tata Steel UK in the European steel industry.
On 7 December 2016, Tata Steel announced that its subsidiary, TM International Logistics (TMILL) has divested entire stake in its wholly owned step down subsidiary TM Harbour Services Private Limited (TMHSPL) to Adani Ports and Special Economic Zone Limited (APSEZ) for a total consideration of Rs 106 crore in an all cash deal. TMHSPL is engaged in the business of providing tug services at Dhamra Port and owns three tug boats.On 5 January 2017, Tata Steel inaugurated the second phase of Cold Rolling Mill (CRM) Complex BARA at its Jamshedpur unit. The phase II expansion of CRM BARA includes installation of 0.3 MnTPA hot rolled skin passing mill (HSPM) to meet the increased demand of Hot-Rolled, Pickled, Skin passed and Oiled products in the automotive sector for high-end customers. In order to cater to the input requirement of HSPM, the production capacity of the existing pickling line has also been increased to 0.68 MnTPA from the designed capacity of 0.5 MnTPA.
On 16 January 2017, Tata Steel announced that its Noamundi iron mine in Odisha conducted pilot launch of drone application in mine monitoring, thereby becoming the first mine in the country to introduce drones for mine monitoring.
On 25 January 2017, Tata Steel executed definitive agreements with Creative Port Development Private Limited (CPDPL) and their promoters for the proposed development of Subarnarekha port at Chaumukh village of Balasore district in Odisha. As per the agreements, Tata Steel will acquire majority equity stake in CPDPL, and the port development is envisaged through a wholly-owned subsidiary, Subarnarekha Port Private Limited (SPPL).
On 21 February 2017, Tata Steel announced that its Greenfield steel plant located in Kalinganagar Industrial Complex in Jajpur district of Odisha, has achieved yet another milestone with the hot metal production at its blast furnace crossing 2 million tonne on 19 February 2017. The blast furnace achieved the first million tonne production of hot metal on 9 October 2016.
On 28 February 2017, Tata Steel announced the completion of the commissioning of the ferro-chrome plant at Gopalpur Industrial Park in Ganjam district of Odisha. The plant has an installed capacity of 55,000 tonne per annum (TPA).
The Board of Directors of Tata Steel at its meeting held on 20 April 2017 approved issue of debt securities of up to Rs 9000 crore in one or more tranches. The funds will be primarily deployed towards re-financing the existing debt, capex/working capital requirements and general corporate purposes.
On 2 May 2017, Tata Steel UK announced the completion of the sale of its Speciality Steels business to Liberty House Group for a consideration of 100 million. The sale covers several South Yorkshire-based assets, including the electric arc steelworks and bar mill at Rotherham, the steel purifying facility in Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury, UK, and in Suzhou and Xi'an, China.
On 23 June 2017, Tata Steel sold 8.35 crore shares of Tata Motors to the Tata Group holding company Tata Sons at a price of Rs 452.80 per share (excluding brokerage and STT).
On 11 July 2017, Tata Steel announced that it divested its entire equity stake in a 50% joint venture, viz, Tata Elastron S.A. in favour to the joint venture partner Elastron S.A. for a total consideration of euro 0.368 million.
On 14 July 2017, Tata Steel announced that it became the first steel company to enter into a long-term tariff contract (LTTC) with Indian Railways. LTTC has been introduced by Indian Railways to establish long-term contracts with customers with guaranteed incremental revenue for Indian Railways.
On 1 August 2017, Tata Steel UK announced the completion of the sale of its 42-inch and 84-inch pipe mills, also known as the Submerged Arc Weld (SAW) mills, in Hartlepool to Liberty House Group. Earlier, Tata Steel UK announced on 11 July 2017 that it had signed a definitive sale agreement to sell its 42-inch and 84-inch pipe mills in Hartlepool to Liberty House Group.
On 20 September 2017, Tata Steel announced that it has signed a Memorandum of Understanding (MoU) with Germany's Thyssenkrupp AG to create a leading European steel enterprise by combining the flat steel businesses of the two companies in Europe and the steel mill services of the Thyssenkrupp group. The proposed 50:50 joint venture - Thyssenkrupp Tata Steel - would be focused on quality and technology leadership, and on the supply of premium and differentiated products to customers, with annual shipments of about 21 million tonnes of flat steel products. The joint venture would have a pro forma turnover of about Rs 15 billion per annum (Rs 115,000 crore) and about 48,000 employees spread across various locations. The joint venture would be headquartered in Amsterdam, Netherlands. The proposed combination of businesses would be formed through a non-cash transaction framework, based on fair valuation, where both shareholders would contribute debt and liabilities to achieve an equal shareholding in the venture.
On 11 October 2017, Tata Steel announced the expiry of the share purchase agreement for the acquisition of 100% equity stake in Brahmani River Pellets Limited (BRPL). Earlier, on 23 December 2016, Tata Steel had announced the execution of definitive agreements to acquire 100% equity shares of BRPL from Aryan Mining and Trading Corpn Private Limited and other companies in the Moorgate Industries Group (MIG). BRPL owns a 4 mtpa Pellet plant in Jajpur, Odisha and 4.7 mtpa iron ore beneficiation plant in Barbil, Odisha connected through a 220 KM underground slurry pipeline. On 11 October 2017, Tata Steel announced that it has acquired Rio Tinto's smelter technology and intellectual property rights required to operate the HIsarna process. HIsarna is a completely new technology in the steelmaking process which combines Tata Steel's cyclone converter furnace with Rio Tinto's smelter.
On 6 November 2017, Tata Steel announced that it has established India's largest Coke Dry Quenching (CDQ) facility, capable of handling 200 metric tonnes per hour, at its state-of-the-art Greenfield steel plant located at the Kalinganagar Industrial Complex in Jajpur district of Odisha. CDQ is a heat recovery system to cool the hot coke from coke ovens. It is one of the most renowned energy-efficient and eco-friendly facilities in steel production where hot coke removed from coke ovens at a temperature of approximately 1,000 x C is cooled and kept dry with inert gas and the resulting steam produced in a waste heat recovery boiler is used to generate electricity.
The Board of Directors of Tata Steel at its meeting held on 18 and 19 December 2017 approved the next phase of expansion of capacity at Kalinganagar, Odisha plant by 5 million tons per annum from 3 MTPA to 8 MTPA. The total capacity of Tata Steel India operations following the expansion will be 18 million tons per annum. The project will cost the company Rs 23500 crore and will be completed within 48 months. The Board also approved a rights issue for an amount not exceeding Rs 12800 crore for financing the expansion project, for de-leveraging the Balance Sheet and for general corporate purposes.
On 18 January 2018, Tata Steel announced the launch of two new products, Tata Aggreto and Tata Nirman, India's first branded LD slag products for applications in road, fly ash brick and clinker making.
On 19 January 2018, Tata Steel announced that the Executive Committee of the Board of the company at its meeting held on 19 January 2018 approved rights issue of equity shares up to Rs 12800 crore. The Committee approved simultaneous but unlinked issue of up to 15.53 crore fully paid-up ordinary shares not exceeding Rs 8000 crore and up to 7.76 crore partly paid-up ordinary shares not exceeding Rs 4800 crore. The rights issue of fully paid-up shares was priced at Rs 510 per share and the partly paid shares at Rs 615 per share. The rights entitlement ratio was fixed at 4 fully paid-up shares for every 25 shares and 2 partly paid shares for every 25 shares held on record date. On 19 January 2018, Tata Steel announced a successful dual tranche Reg S issuance of USD 1.3 billion of unsecured bonds in the international markets. The issue comprises USD 300 million 4.45 percent unsecured bonds due on 24 July 2023 and USD 1 billion 5.45 percent unsecured bonds due on 24 January 2028 by Abja Investment Co Pte Ltd, a wholly owned subsidiary of Tata Steel Incorporated in Singapore. The proceeds of the bonds will be used to refinance the offshore obligations of the company, which will help de-risk the balance sheet, enhance financial flexibility, diversify the investor base and improve the overall debt maturity profile.
On 2 February 2018, Tata Steel announced that it has concluded the acquisition of 74% equity stake in Bhubaneshwar Power Private Limited (BBPL) from JL Power Ventures Private Limited (JL Power). Tata Steel together with its 100% subsidiary TS Alloys already held 26% stake in BBPL. BBPL owns a 135 MW (2x67.5MW) thermal power plant at Anantapur Village in Cuttack District of Odisha. The acquisition of BBPL will allow Tata Steel to increase its captive source of power to meet its growing demand. Tata Steel had on 30 November 2017 executed definitive agreements to acquire 74% equity shares of Bhubaneshwar Power from JL Power Ventures for a consideration of Rs 255 crore. On 14 February 2018, West Bokaro division of Tata Steel commissioned the primary crushing plant 3 (PCP 3). PCP 3 has been set-up with an objective of augmenting coal beneficiation at the colliery.
In June 2018, the company had signed definitive agreements with thyssenkrupp to combine its steel businesses in Europe to create a 50:50 pan-European joint venture company focussing on customer centricity, technology and sustainability.
On October 18, 2018, T S Global Minerals Holdings Pte. Ltd. entered into an agreement with IMR Asia Holding Pte Ltd, a group company of IMR Metallurgical Resources AG, a global metals and mining group headquartered in Switzerland, to divest its entire stake in its wholly-owned step down subsidiary Black Ginger 461 Pty. Ltd. which in turn holds 64% in Sedibeng Iron ore Pty Ltd, South Africa, the operating company. The divestment was completed on February 18, 2019.
During the year 2018-19, the Company, on a consolidated basis spent Rs 9091 crore on capital projects across India, Europe and Canada largely towards essential sustenance, replacement and on-growth projects in India (Kalinganagar plant and Tata Steel BSL Limited), and in the Netherlands.
During the year under review, the Company through its wholly-owned subsidiary, Bamnipal Steel Limited (BNPL') acquired of controlling stake of 72.65% in Bhushan Steel Limited (renamed Tata Steel BSL Limited) (TSBSL), on May 15, 2018.
In January 2017, the Company entered into definitive agreement to acquire 51% equity stake in Creative Port Development Private Limited (CPDPL') for the development of Subarnarekha Port at Odisha through a wholly-owned subsidiary Subarnarekha Port Private Limited. On September 18, 2018, the Company completed the acquisition of 51% equity stake in CPDPL, a proposed greenfield port project.
On September 22, 2018, the Company, as a part of its strategy to grow in long products, executed definitive agreements for acquisition of steel business of Usha Martin Limited (UML'), a special steel and wire rope manufacturer, through a slump sale on a going concern basis. On October 24, 2018, the Company extended support for Tata Sponge Iron Ltd's entry into steel business and identified it as the strategic vehicle for acquisition of steel business of UML. On April 9, 2019, TSIL completed the acquisition of steel business undertaking including captive power plants, for a cash consideration of Rs 4094 crore, which is subject to further hold backs of Rs 640 crore, pending transfer of some of the assets including mines and certain land parcels.
The company have 220 subsidiaries and 50 associate companies (including 28 joint ventures) as on March 31, 2020.
During the year 2019-20, the Company and thyssenkrupp AG decided not to pursue the proposed transaction to form a joint venture to combine their steel businesses in Europe. The decision was taken after careful evaluation of the viability of the proposal in light of the feedback received from the European Commission ('EC'). Thereafter, on June 11, 2019, EC formally announced its decision to prohibit the proposed joint venture.
During the year under review, Tata Steel BSL Limited (TSBSL'), an indirect subsidiary of the Company, acquired controlling stake in Bhushan Energy Limited (now Angul Energy Limited) (BEL), approved by the National Company Law Tribunal (Principal Bench, New Delhi) vide its Order dated May 30, 2019 and consequently, BEL became a subsidiary of TSBSL effective from June 1, 2019.
The Company had 209 subsidiaries and 49 associate companies (including 28 joint ventures) as on March 31, 2021.
In FY 2020-21, the Company commissioned a 100 tonne-perannum integrated Graphene manufacturing plant which can be used in diverse sectors such as materials handling, textiles, packaging, etc.
In FY 2020-21, the Company transferred its holding in Tata Steel Special Economic Zone Limited, The Tata Pigments Limited, Jamipol Limited and, Nicco Jubilee Park Limited to Tata Steel Utilities and Infrastructure Services Limited, (Company's wholly-owned subsidiary) and its holding in Jamshedpur Continuous Annealing and Processing Company Private Limited, and Tata Bluescope Steel Private Limited to Tata
Steel Downstream Products Limited, (Company's whollyowned subsidiary).
During the year 2020-21, the Company developed 79 new products in India. It commercialized products such as, high stretch flangeability, higher radial fatigue life, heat treatable automotive steels, line-pipe steels with excellent low temperature impact toughness. For cold
rolled products segment, it received multiple Auto Original Equipment Manufacturers (OEM) approvals for CRDP780. It commercialised Fe500 CRS to be used in the construction sector. For coating segment, it entered into functional secondary coatings' market and got approval for lubrication-coated GA (T-COAT) in exposed panel application. It obtained approval for skin panel for passenger vehicles based upon bake-hardenable grade BH180 GA. In long products segment, it commercialised high strength, high ductility rebar grade-Fe500 SD, from New Bar Mill.
During the year 2020-21, 16 new products were launched in Europe, including major developments for engineering, packaging and construction markets. This launch includes TCCT Protact (Tata Steel Europe's polymer coated packaging steel brand) for aerosol
applications. It developed Magizinc 310 for solar panel frame applications, providing customers with a 25-year guarantee of corrosion performance in service. In the construction sector, it launched Colorcoat Urban Seam Façade, a self-supporting façade system, certified to meet stringent new fire regulations in the residential metal facades segment. Additionally, it extended offerings in high strength linepipe for offshore oil & gas applications, and commercialised a tubular solution for trailer landing legs, requiring tight tolerance control. Furthermore, the automotive sector extended and commercialised the advanced high strength in steel portfolio through additional routes to market. It launched the in-house digital Value Analysis & Value Engineering (VAVE) platform called 'e-DRIVE'. It transformed supply chain experience for its customers through its digital solution COMPASS which provides a digital platform to customers and OTIF (On Time in Full') to track inventory. The Company through its subsidiary, Tata Steel BSL Limited, launched new coated brands such as GalvaRoS (GPRS), Galvanova (GL) and Colornova (CC) for entry into new product & market segments and promote sustainability. It collaborated with the World Steel Association to support them in their efforts to improve steel intensity in construction.
On August 18, 2021, the Company commissioned new 0.5 MnTPA Steel Recycling Plant at Rohtak, Haryana with Aarti Green Tech Limited on Build-Own-Operate' basis.
On September 30, 2021, T S Global Holdings Pte. Ltd. (TSGH), an indirect wholly owned subsidiary of Tata Steel Limited executed agreements with Toptip Holding Pte. Ltd. and divested entire stake held in NatSteel Holdings Pte. Ltd., for an equity value of US$ 172 million.
During the year 2021-22, the Company developed 62 new products in India. In Europe, 13 new products were launched during the year, which included major developments for automotive, engineering, and construction markets in the Netherlands and construction and energy markets in the United Kingdom.
During the year 2021-22, Company sold stake in Singapore operations of NatSteel Holdings Pte. Ltd. (NSH), holding wires business in Thailand (Siam Industrial Wires), which was retained by Tata Steel as a part of portfolio.
In FY 2022, Board of Directors of the Company, at their meeting held on April 25, 2019 amalgamated Bamnipal Steel Limited and Tata Steel BSL Limited (TSBSL), into and with the Company by way of a Composite Scheme of Amalgamation, which was approved by Shareholders of the Company on March 26, 2021. The Company filed the Company Scheme Petition' with the Hon'ble NCLT, Mumbai Bench, to sanction the Scheme, which became effective from November 11, 2021. On merger, the plants and supporting units of erstwhile Tata Steel BSL will hence be known as Tata Steel Meramandali.
On January 31, 2022, Tata Steel Long Products Limited (TSLP), a listed subsidiary of Company acquired 93.71% stake in 1 MnTPA Neelachal Ispat Nigam Limited (NINL) for Kalinganagar Steel Plant. On March 10, 2022, the Company and TSLP executed a Share Sale and Purchase Agreement (SSPA) with NINL and its principle shareholders and acquired the said stake for a total consideration of Rs. 12,100 crore.
On April 11, 2022, the Company (through Tata Steel Mining Limited (TSML), wholly-owned subsidiary of Tata Steel, acquired 90% equity stake in Rohit Ferro-Tech Limited (RFT) and balance 10% stake was acquired by the assenting financial creditors of RFT towards conversion of a portion of their loans. It increased equity stake in Medica TS Hospital Private Limited (MTSHPL), a JV of Tata Steel, and became subsidiary of the Company effective from January 7, 2022.
On February 28, 2022, the Company through Tata Steel Advanced Materials Limited (TSAML), wholly owned subsidiary, acquired 90% equity stake in Ceramat Private Limited, which was completed on March 16, 2022 for a cash consideration of Rs. 90,000.
On March 30, 2022, Company executed an Asset Transfer Agreement with Stork Ferro and Mineral Industries Private Limited and acquired itemized assets to produce ferro alloys for a cash consideration of Rs. 155 crore.
On April 5, 2022, the Company had acquired 50% equity stake of SAIL held in S&T Mining Company Limited, which was completed on April 11, 2022 and consequently, S&T Mining ceased to be joint venture of the Company and became its wholly-owned subsidiary.
In FY 2022, Company transferred its entire shareholdings in Tata Steel Special Economic Zone Limited, Adityapur Toll Bridge Company Limited, Himalaya Steel Mill Services Private Limited, Tata Pigments Ltd., Jamipol Limited, Nicco Jubilee Park Limited to Tata Steel Utilities and Infrastructure Services Limited (Company's wholly-owned subsidiary), and entire shareholding in Tata Steel Advanced Materials Limited (formerly Tata Steel Odisha Limited) to Tata Steel Downstream Products Limited (Company's wholly-owned subsidiary).
During the year 2022, the Company launched niche Lifting & Excavation (L&E) products by developing S700MC, first of its kind in India, with guaranteed toughness at -40°C, primarily used in telescopic boom application, which led to import substitution and customer delight. It developed Fe550SD with higher strength and ductility and commercialized it in size range of 6mm to 25mm. Also, higher sizes of high strength rebars of Fe600HD and Fe550D were developed to cater to niche requirements in various projects in areas of construction and infrastructure. In order to cater to the new requirements of high strength wire rods for LRPC and spring application, new grades such as HC82Cr[LR HT], HC82BCr[SH HT], PC300K were developed. In Europe, 13 new products were launched during the year. It introduced new offerings of nickle-plated steel for application in rechargeable batteries used in Electric Vehicles. In the construction sector, it launched products which extended the capability of linepipe offerings for offshore Oil & Gas application in the X65/X70 grade range and improved the sustainability of Contiflo range of precision tubes. It also introduced Sinusoidal Roof Panel which is the future-proof solution for asbestos replacement market. In the engineering sector, the Company has launched two additional hot-rolled grades - 27MnB5 and 38MnB5, to strengthen its heat treatable, manganese boron portfolio. In the United Kingdom, it commercialized the Colorcoat High Reflect Liner A+ organic coated steel product, thereby catering to customer requirement in construction sector.
During FY 2021-22, the Company conducted 20 new trials were across the plant to establish new operating paradigm (Polymer usage to reduce coal blend cost and usage of alternate fluxes in Blast Furnaces for improved productivity. It had developed 29 new products out of which the 3 first time products in India viz., Lead free steel, PC300k - Alloy LRPC.
On September 22, 2022, Tata Steel Long Products Ltd (TSLP) was merged into and with Company through Scheme of amalgamation effective from 04 July, 2022 with share exchange ratio of 67 fully paid-up equity shares of nominal value of Re 1/- each of the Company for every 10 fully paid-up equity shares of nominal value of Rs 10/- each held by the public shareholders of TSLP. i.e., 67:10.
The Tinplate Company of India Limited was amalgamated into and with the Company effective from 04 July, 2022 with share exchange ratio of 33 fully paid-up equity shares of nominal value of Re 1/- each of the Company for every 10 fully paid-up equity shares of nominal value of Rs 10/- each held by the public shareholders of TCIL. i.e., 33:10.
Tata Metaliks Limited was amalgamated into and with the Company effective from 04 July, 2022 with a share exchange ratio of 79 fully paid-up equity shares of nominal value of Re 1/- each of the Company for every 10 fully paid-up equity shares of nominal value of Rs. 10/- each held by the public shareholders of TML. i.e., 79:10.
TRF Limited was merged into and with the Company effective from 04 July, 2022 with a share exchange ratio of 17 fully paid-up equity shares of nominal value of Re 1/- each of the Company for every 10 fully paid-up equity shares of nominal value of Rs. 10/- each held by the public shareholders of TRF. i.e., 17:10.
The Company through Tata Steel Mining Limited (TSML), a wholly-owned subsidiary, acquired equity stake in Rohit Ferro-Tech Limited (RFT) and RFT became a wholly-owned subsidiary of TSML. As a result of acquisition, RFT was amalgamated with TSML effective on July 7, 2022.
On July 4, 2022, the Company through its subsidiary Tata Steel Long Products Limited (TSLP) acquired 93.71% stake in Neelachal Ispat Nigam Limited (NINL) for an aggregate consideration of Rs. 12,100 Crore and consequently, NINL became a step-down subsidiary of the Company. The Company also acquired 75.94% equity stake of Tata Steel Advanced Materials Limited (TSAML) from Tata Steel Downstream Products Limited, for an aggregate amount of Rs 54.69 crore and post the said acquisition, TSAML became a direct wholly-owned subsidiary of Company.
During 2023, the Company launched Carbon Lite, a low carbon emission steel solution, offering the potential for up to 100% reduction in CO2 intensity to customers in the UK and the Netherlands, launched Tata Aggreto and Tata Nirman, India's 1st branded steel slag products. It launched new off-site manufactured construction solutions with Catnic Matrix and Trimawall Fast-Fit. In the renewables sector, it launched Magizinc for Solar S450 product. In the Automotive segment, it launched the DP600-GI Hyperform product for OEMs. Further, the launch of C45 medium carbon grade led to diversification of portfolio.
Tata Steel Ltd
Directors Reports
To the Members,
Your Directors take pleasure in presenting the 8th Integrated Report
[prepared as per Integrated Reporting <IR> framework of the International Integrated
Reporting Council (IIRC) (now consolidated into IFRS Foundation)] and the 116th Annual
Accounts on the business and operations of Tata Steel Limited (‘Tata Steel' or
‘Company'), along with the summary of standalone and consolidated financial
statements for the financial year ended March 31, 2023.
A. Financial Results
|
Tata Steel
Standalone |
Tata Steel
Consolidated |
Particulars |
2022-23 |
2021-22 |
2022-23 |
2021-22 |
| Revenue from operations |
1,29,006.62 |
1,29,021.35 |
2,43,352.69 |
2,43,959.17 |
| Total expenditure before nance cost,
depreciation (net of |
|
|
|
|
|
1,01,304.65 |
77,891.50 |
2,11,052.53 |
1,80,469.22 |
| expenditure transferred to capital) |
|
|
|
|
| Operating Profit |
27,701.97 |
51,129.85 |
32,300.16 |
63,489.95 |
| Add: Other income |
3,325.48 |
1,452.02 |
1,037.48 |
784.89 |
| Profit before nance cost, depreciation,
exceptional items and tax |
31,027.45 |
52,581.87 |
33,337.64 |
64,274.84 |
| Less: Finance costs |
3,792.14 |
2,792.08 |
6,298.70 |
5,462.20 |
| Profit before depreciation, exceptional
items and tax |
27,235.31 |
49,789.79 |
27,038.94 |
58,812.64 |
| Less: Depreciation and amortisation
expenses |
5,434.61 |
5,463.69 |
9,335.20 |
9,100.87 |
| Profit / (Loss) before share of
profit/(loss) of joint ventures & |
|
|
|
|
|
21,800.70 |
44,326.10 |
17,703.74 |
49,711.77 |
| associates, exceptional items & tax |
|
|
|
|
| Share of profit / (loss) of Joint Ventures
& Associates |
- |
- |
418.12 |
649.16 |
| Profit / (Loss) before exceptional items
& tax |
21,800.70 |
44,326.10 |
18,121.86 |
50,360.93 |
| Add/(Less): Exceptional Items |
(778.78) |
(235.45) |
113.26 |
(134.06) |
| Profit before tax |
21,021.92 |
44,090.65 |
18,235.12 |
50,226.87 |
| Less: Tax Expense |
5,526.81 |
11,079.47 |
10,159.77 |
8,477.55 |
| (A) Profit/(Loss) after tax |
15,495.11 |
33,011.18 |
8,075.35 |
41,749.32 |
| Total Profit / (Loss) for the period
attributable to: |
|
|
|
|
| Owners of the Company |
- |
- |
8,760.40 |
40,153.93 |
| Non controlling interests |
- |
- |
(685.05) |
1,595.39 |
| (B) Total other comprehensive income |
100.37 |
694.90 |
(13,849.07) |
1,305.42 |
| (C) Total comprehensive income for the
period [ A + B ] |
15,595.48 |
33,706.08 |
(5,773.72) |
43,054.74 |
| Retained Earnings: Balance brought forward
from the |
|
|
|
|
|
76,498.67 |
46,480.00 |
55,647.79 |
16,476.70 |
| previous year |
|
|
|
|
| Add: Profit for the period |
15,495.11 |
33,011.18 |
8,760.40 |
40,153.93 |
| Less: Distribution on Hybrid perpetual
securities |
- |
1.46 |
- |
1.46 |
| Add: Tax e ect on distribution of Hybrid
perpetual securities |
- |
0.37 |
- |
0.37 |
| Add: Other Comprehensive Income recognised
in Retained Earnings |
210.31 |
5.67 |
(9,981.60) |
366.39 |
| Add: Other movements within equity |
- |
9.99 |
(33.12) |
1,656.02 |
| Balance |
92,204.09 |
79,505.75 |
54,393.47 |
58,651.95 |
| Which the Directors have apportioned as
under to:- |
|
|
|
|
| (i) Dividend on Ordinary Shares |
6,233.11 |
3,007.08 |
6,227.15 |
3,004.16 |
| Total Appropriations |
6,233.11 |
3,007.08 |
6,227.15 |
3,004.16 |
| Retained Earnings: Balance to be carried
forward |
85,970.98 |
76,498.67 |
48,166.32 |
55,647.79 |
Notes: i. On July 4, 2022, Tata Steel Long Products Limited
(‘TSLP'), a non-wholly owned listed subsidiary of the Company, had completed the
acquisition of Neelachal Ispat Nigam Limited (‘NINL') for a total purchase
consideration of 12,100 crore as per the terms and conditions of the Share Sale and
Purchase Agreement (‘SPA').
The financial statements of NINL have been consolidated efective July,
4 2022. ii. Pursuant to an order pronounced by the Hon'ble National Company Law
Tribunal, Kolkata Bench (‘Hon'ble NCLT') on
April 7, 2022, Tata Steel Mining Limited (‘TSML'), an
unlisted wholly-owned subsidiary of the Company completed the acquisition of a controlling
stake of 90% in Rohit Ferro-Tech Limited (‘RFT') on April 11, 2022, under the
Corporate Insolvency Resolution Process (‘CIRP') of the Insolvency and
Bankruptcy Code, 2016 (‘Code'). Vide the same order, the Hon'ble NCLT also
approved the amalgamation of RFT with TSML subject to TSML acquiring 100% equity stake in
RFT. On July 7, 2022, RFT was amalgamated with TSML. iii. Figures for the previous periods
have been regrouped and reclassified to conform to the classi cation of the current
period, where necessary. iv. During the year under review, exceptional items (Consolidated
Accounts) primarily represents: a. Gain on sale of non-current investments at Tata Steel
Europe (‘TSE') amounting to 67 crore. b. Impairment reversal 96 crore at TSE on
deferred consideration of Speciality Business. c. Net impairment reversal in respect of
property, plant and equipment (including capital work-in-progress), right-of-use assets
and other assets at TSE amounting to 37 crore. d. Fair valuation gain on non-current
investments amounting to 31 crore at Tata Steel Limited (Standalone).
Partly offset by, a. Net Provision for Employee Separation Scheme
(‘ESS') amounting to 92 crore under Sunehere Bhavishya Ki Yojana
(‘SBKY') scheme at Tata Steel Limited (Standalone). b. Expenses incurred in
stamp duty and registration fees for a portion of land parcels and mines acquired as part
of business combination amounting to 2 crore at TSLP.
c. Impairment of Mini Blast Furnace at Tata Steel Thailand
(‘TSTH') amounting to 11 crore. d. Net impairment charge of 12 crore on Inter
Corporate Deposit ('ICD') & investments in one of the associates at
Tata Steel Limited (Standalone).
The exceptional items (Consolidated Accounts) in Financial Year 2021-22
primarily include: a. Restructuring and other provisions which includes charge on
Employees Family Protection Scheme for COVID-19 amounting to 215 crore at Tata Steel
Limited (Standalone), Tata Steel Downstream Products Limited (‘TSDPL') and at
Tata Steel Utilities and Infrastructure Limited (‘TSUISL').
b. Impairment charges (net of reversal) 172 crore in respect of property, plant and
equipment (including capital work-in-progress), right-of-use assets and other assets
primarily at TSE and TSTH. c. Provision for ESS amounting to 331 crore includes provisions
made primarily under SBKY scheme amounting to 208 crore and Second Innings Scheme
amounting to 123 crore, at Tata Steel Limited (Standalone). d. Impairment of Inter
Corporate Deposits (‘ICDs') given to an associate of the Company amounting to
100 crore at Tata Steel Limited (Standalone). e. Expenses incurred on stamp duty and
registration fees for a portion of land parcels and mines acquired as part of business
combination amounting to 27 crore at TSLP. f. Redundancy provisions at TSE amounting to 14
crore. g. Impairment on outstanding deferred consideration at TSE amounting to 81 crore.
Partly offset by, a. Profit on sale of subsidiaries and non-current
investments in NatSteel Holdings Pte. Ltd. (‘NSH') amounting to 725 crore. b.
Reversal of fair valuation loss previously taken on investment in debentures of a joint
venture of the Company amounting to 50 crore at Tata Steel Limited (Standalone). c. Gain
on sale of land amounting to 31 crore at Tata Metaliks Limited (‘TML').
1.Dividend Distribution Policy
In terms of Regulation 43A of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (‘SEBI
Listing Regulations') the Board of Directors of the Company (the ‘Board')
formulated and adopted the Dividend Distribution Policy (the ‘Policy').
The Policy is available on our website at https://www.
tatasteel.com/media/6086/dividend-policy- nal.pdf
2.Dividend
For the Financial Year 2022-23, the Board has recommended a dividend of
3.60 per Ordinary (equity) Share of face value of 1/- each (previous year: 51/- per fully
paid-up Ordinary (equity) Share of face value of 10/- each).
The Board has recommended dividend based on the parameters laid down in
the Dividend Distribution Policy. The dividend will be paid out of the profits for the
year. The dividend on Ordinary (equity) Shares is subject to the approval of the
Shareholders at the Annual General Meeting (‘AGM') scheduled to be held on
Wednesday,
July 5, 2023 and will be paid on and from Monday, July 10, 2023.
Based on the number of Ordinary (equity) Shares as on the date of this
report, the dividend, if approved would result in a cash outflow of ~ 4,400 crore. The
dividend on Ordinary (equity) Shares is 360% of the paid-up value of each share. The total
dividend pay-out works out to 28% (previous year: 19%) of the net profit (on standalone
basis). Pursuant to the Finance Act, 2020, dividend income is taxable in the hands of the
shareholders effective April 1, 2020 and the Company is required to deduct tax at source
from dividend paid to the Members at prescribed rates as per the Income Tax Act, 1961.
The Register of Members and Share Transfer Books of the Company will
remain closed from Friday, June 23, 2023 to Wednesday, July 5, 2023 (both days inclusive)
for the purpose of payment of the dividend and AGM for the financial year ended March 31,
2023.
3.Transfer to Reserves
The Board of Directors has decided to retain the entire amount of
profit for the Financial Year 2022-23 in the statement of profit and loss.
4.Capex and Liquidity
During the year under review, the Company, on a consolidated basis,
spent 14,142 crore on capital projects across India and Europe, largely towards ongoing
growth projects in India, essential sustenance and replacement schemes.
The Company's liquidity position, on a consolidated basis, is
28,688 crore as on March 31, 2023, comprising 17,083 crore in cash and cash equivalent and
balance in undrawn credit lines.
5.Management Discussion and Analysis
The Management Discussion and Analysis as required in terms of the SEBI
Listing Regulations forms part of this Integrated Report and Annual Accounts 2022-23
(Annexure 1).
B. Integrated Report and Business Responsibility and Sustainability
Report
In keeping with the Company's valued tradition of 'thinking about
society and not just the business', in 2016, we transitioned from compliance based
reporting to governance based reporting by adopting the <IR> framework of the
International Integrated Reporting Council (IIRC) (now consolidated into IFRS Foundation).
Our 8th Integrated Report highlights the measures taken by the Company that contributes to
long-term sustainability and value creation, while embracing di erent skills, continuous
innovation, sustainable growth and a better quality of life.
In accordance with Regulation 34(2)(f) of the SEBI Listing Regulations,
the Securities and Exchange Board of India (‘SEBI'), in May 2021, introduced new
sustainability related reporting requirements to be reported in the specific format of
Business Responsibility and Sustainability Report (‘BRSR'). BRSR is a notable
departure from the existing
Business Responsibility Report and a significant step towards giving
platform to the companies to report the initiatives taken by them in areas of Environment,
Social and Governance. Further, SEBI has mandated top 1,000 listed companies, based on
market capitalisation, to transition to BRSR from FY2022-23 onwards. Accordingly, we are
glad to present our inaugural BRSR for FY2022-23.
C. Operations and Performance
1.Tata Steel Group
During the year under review, the consolidated crude steel production
for Tata Steel Group (‘TSG') was
30.65 MnT as against 31.03 MnT of FY2021-22, a marginal decline of 1%.
The production increased at Tata Steel Limited (Standalone) by 3%, to 18.97 MnT,
(FY2021-22: 18.38 MnT), Tata Steel Europe (‘TSE') produced 9.35 MnT, lower by 8%
(FY2021-22: 10.11 MnT) as TSUK undertook a significant maintenance programme focused on
its steelmaking assets in Port Talbot in order to improve operational stability along with
weakening of market during the 2nd half of the financial year. Tata Steel Long Products
(standalone) produced 0.71 MnT (FY2021-22: 0.68 MnT). Moreover, with the completion of the
acquisition of Neelachal Ispat Nigam Limited (‘NINL') during the year, the
production further increased by 0.20 MnT. Production at South-East Asia (‘SEA')
was 1.43 MnT (FY2021-22: 1.86 MnT) which was lower due to disposal of Singapore operations
of NatSteel Holdings Pte. Ltd. (‘NSH') during FY2021-22. The consolidated steel
deliveries of TSG was at 28.79 MnT in FY2022-23 as against 29.52 MnT in FY2021-22, a
marginal decrease of 2%, primarily at TSE due to weakening of market and at SEA.
The turnover of TSG at 2,43,353 crore was marginally lower over
FY2021-22 by 606 crore. This was on account of decline in steel realisations across
geographies except European operations, attributable to decrease in demand and
implementation of export duty on steel in India during the year, along with lower steel
deliveries by 0.73 MnT. The EBITDA of TSG for FY2022-23 at 32,698 crore was lower over
FY2021-22 by 31,132 crore (49%), primarily due to increase in input cost mainly in coking
coal along with lower steel realisations in India.
2.India
During the year under review, the crude steel production in Tata Steel
Limited increased by 3% to 18.97 MnT on account of better operational performance. During
the year under review, total deliveries at Tata Steel Limited (Standalone) were at 18.22
MnT (previous year: 17.62 MnT). Turnover was 1,29,007 crore (previous year: 1,29,021
crore), which was at par against the previous year mainly due to higher deliveries, offset
by decline in steel prices. EBITDA was at 28,175 crore (previous year: 51,456 crore), 45%
lower than that of the previous year, primarily on account of higher raw material cost,
mainly coking coal. TSLP on a consolidated basis achieved crude steel production of 0.91
MnT, while deliveries stood at 0.82 MnT, both higher than previous year, due to
acquisition of NINL during the year. The turnover at 8,992 crore was significantly higher
on account of higher deliveries and higher prices. EBITDA was at negative 613 crore and
loss after tax was at 2,304 crore. This was primarily on account of higher input cost,
mainly coking coal prices along with expenditure incurred on revamping NINL which started
production within 3 months of its acquisition. Increase in Rs.nance cost and depreciation
and amortisation charge post NINL acquisition further impacted the profits.
Total deliveries of Tata Steel from its Indian operations (including
TSLP) stood at 18.87 MnT which is higher than the previous year by 3%. The turnover was
1,37,030 crore, a marginal increase by ~1% against previous year and EBITDA (excluding
inter-company eliminations and adjustments) was 27,561 crore, 48% decline over previous
year, owing to sharp increase in operating cost due to increase in imported coking coal
prices and decline in steel realisations, which was partly offset by, higher steel
deliveries.
3.Europe
During the year under review, liquid steel production from European
operations was 9.35 MnT (previous year: 10.11 MnT), a decrease of 8% against the previous
year due to low demand from the market in the second half of the year following the
general economic slowdown in Europe, although production was not as low as deliveries due
to a build-up of inventory in TSN in order to support operations during an extended outage
for the Blast Furnace 6 reline at the start of FY2023-24. Deliveries from European
operations decreased by around 10% to 8.16 MnT primarily due to decline in demand.
Turnover from operations was 90,300 crore (previous year: 90,023 crore) which was
marginally higher than FY2021-22. However, in GBP terms, revenue increased by 5% due to
improved average revenue per tonne which more than offset the lower deliveries.
EBITDA stood at 4,632 crore (previous year: 12,164 crore) which
declined over the previous year. This re ected contrasting EBITDA performance between the
first and second half of the year with the first half benefitting from exceptionally high
selling prices resulting in record EBITDA performance. The second half however experienced
a reduction in selling prices due to lower market demand following the economic slowdown
in Europe although raw material and energy costs remained high which resulted in EBITDA
losses.
D. Key Developments
1. Amalgamation a) Amalgamation of Tata Steel Long Products Limited
into and with Tata Steel Limited
The Board of Directors of the Company (‘Board'), at its
meeting held on September 22, 2022, approved the scheme of amalgamation of Tata Steel Long
Products Limited (‘TSLP') into and with the Company
(‘TSLP Scheme'). TSLP is the listed subsidiary of the
Company. The Board has recommended a share exchange ratio of 67 fully paid-up equity
shares of nominal value of 1/- each of the Company for every 10 fully paid-up equity
shares of nominal value of 10/- each held by the public shareholders of TSLP. As part of
the TSLP Scheme, the equity and preference shareholding of the Company in TSLP shall stand
cancelled. The Company has received the ‘observation letter' dated March 31,
2023 from the National Stock Exchange of India Limited and BSE Limited and has led an
application before the Hon'ble National Company Law Tribunal, Mumbai Bench for
necessary directions. The amalgamation is subject to approval from the shareholders and
other regulatory/governmental authorities. b) Amalgamation of The Tinplate Company of
India Limited into and with Tata Steel Limited
The Board, at its meeting held on September 22, 2022, approved the
scheme of amalgamation of The Tinplate Company of India Limited (‘TCIL') into
and with the
Company (‘TCIL Scheme'). TCIL is the listed subsidiary of the
Company. The Board has recommended a share exchange ratio of 33 fully paid-up equity
shares of nominal value of 1/- each of the Company for every 10 fully paid-up equity
shares of nominal value of 10/- each held by the public shareholders of TCIL. As part of
the TCIL Scheme, the equity shareholding of the Company in TCIL shall stand cancelled. The
Company has received the ‘observation letter' dated March 31, 2023 from the
National Stock Exchange of India Limited and BSE Limited and has led an application before
the Hon'ble National Company Law Tribunal, Mumbai Bench for necessary directions. The
amalgamation is subject to approval from the shareholders and other
regulatory/governmental authorities. c) Amalgamation of Tata Metaliks Limited into and
with Tata Steel Limited
The Board, at its meeting held on September 22, 2022, approved the
scheme of amalgamation of Tata Metaliks Limited (‘TML') into and with the
Company (‘TML Scheme'). TML is the listed subsidiary of the Company. The Board
has recommended a share exchange ratio of 79 fully paid-up equity shares of nominal value
of 1/- each of the Company for every 10 fully paid-up equity shares of nominal value of
10/- each held by the public shareholders of TML. As part of the TML Scheme, the equity
shareholding of the Company in TML shall stand cancelled. The Company has received the
‘observation letter' dated March 31, 2023 from the National Stock Exchange of
India Limited and BSE Limited and has led an application before the Hon'ble National
Company Law Tribunal, Mumbai Bench for necessary directions. The amalgamation is subject
to approval from the shareholders and other regulatory/ governmental authorities. d)
Amalgamation of TRF Limited into and with Tata Steel Limited
The Board, at its meeting held on September 22, 2022, approved the
scheme of amalgamation of TRF Limited (‘TRF') into and with the Company
(‘TRF Scheme'). TRF is the listed associate of the Company. The Board has
recommended a share exchange ratio of 17 fully paid-up equity shares of nominal value of
1/- each of the Company for every 10 fully paid-up equity shares of nominal value of 10/-
each held by the public shareholders of TRF. As part of the TRF Scheme, the equity and
preference shareholding of the Company in TRF shall stand cancelled. The Company has
received the ‘observation letter' dated March 31, 2023 from the National Stock
Exchange of India Limited and BSE Limited and has led an application before the
Hon'ble National Company Law Tribunal, Mumbai Bench for necessary directions. The
amalgamation is subject to approval from the shareholders and other
regulatory/governmental authorities. e) Amalgamation of The Indian Steel & Wire
Products Limited into and with Tata Steel Limited
The Board, at its meeting held on September 22, 2022, approved the
scheme of amalgamation of The Indian Steel & Wire Products Limited (‘ISWP')
into and with the Company (‘ISWP Scheme'). ISWP is an unlisted subsidiary of the
Company. Upon the Scheme coming into effect, the shareholders of ISWP (except the Company)
shall receive 426/- for every 1 fully paid-up equity share of nominal value of 10/- each
of ISWP held by the shareholders of ISWP. As part of the ISWP Scheme, the equity
shareholding of the Company in ISWP shall stand cancelled. The Company has received the
‘observation letter' from the National Stock Exchange of India Limited and BSE
Limited on March 24, 2023. The amalgamation is subject to approval from the shareholders
and other regulatory/governmental authorities.
f) Amalgamation of Tata Steel Mining Limited into and with Tata Steel
Limited
The Board, at its meeting held on September 22, 2022, approved the
scheme of amalgamation of Tata Steel Mining Limited (‘TSML') into and with the
Company
(‘TSML Scheme'). TSML is a wholly-owned subsidiary of the
Company and upon the TSML Scheme coming into e ect, the entire paid-up share capital of
TSML shall stand cancelled. The TSML Scheme is pending approval before the Hon'ble
National Company Law Tribunal, Cuttack Bench. The amalgamation is also subject to approval
from other regulatory/governmental authorities. g) Amalgamation of S & T Mining
Company Limited into and with Tata Steel Limited
The Board, at its meeting held on September 22, 2022, approved the
scheme of amalgamation of S & T Mining Company Limited (‘S&T Mining')
into and with the Company (‘S&T Scheme'). S&T Mining is a wholly-owned
subsidiary of the Company and upon the S&T Scheme coming into e ect, the entire
paid-up share capital of S&T Mining shall stand cancelled. The S&T Scheme is
pending approval before the Hon'ble National Company Law Tribunal, Kolkata Bench. The
amalgamation is also subject to approval from other regulatory/governmental authorities.
h) Amalgamation of Angul Energy Limited into and with Tata Steel Limited
The Board of Directors of the Company, at its meeting held on February
6, 2023, approved the scheme of amalgamation of Angul Energy Limited (‘AEL')
into and with the Company (‘AEL Scheme'). Upon the AEL Scheme coming into e ect,
the shareholders of AEL (except the Company) shall receive 1,045 for every 1 fully paid-up
equity share of nominal value of 10/- each of AEL held by the shareholders of AEL. The
Company has led the application with the National Stock Exchange of India Limited and BSE
Limited for necessary directions. The amalgamation is subject to approval of the
shareholders and other regulatory/governmental approvals.
2. Acquisitions & Investments a) Acquisition of Rohit Ferro-Tech
Limited through Tata Steel Mining Limited, a wholly-owned subsidiary
On April 11, 2022, in terms of the approved Resolution Plan under the
Corporate Insolvency Resolution Process (‘CIRP') of the Insolvency and
Bankruptcy Code 2016 (‘Code'), the
Company through Tata Steel Mining Limited (‘TSML'), a
wholly-owned subsidiary, completed the acquisition of 90% stake in Rohit Ferro-Tech
Limited (‘RFT').
On June 22, 2022, TSML acquired the remaining 10% equity stake of RFT
held by the financial creditors for a consideration of ~ 20.06 crore which was paid by
TSML on June 14, 2022. Upon completion of the said acquisition, RFT became a wholly-owned
subsidiary of TSML. Further, on July 7, 2022, RFT was amalgamated with TSML, pursuant to
the order of the Hon'ble National Company Law Tribunal, Kolkata Bench dated April 7,
2022 approving the Resolution Plan submitted by TSML for acquisition of RFT.
b) Acquisition of Preference Shares of TRF Limited
On May 13, 2022, the Company acquired 1,30,00,000 - 11.25% Optionally
Convertible Redeemable Preference Shares (‘OCRPS') of face value 10/- each of
TRF Limited
(‘TRF'), a listed associate of the Company, on a preferential
basis aggregating to 13 crore. Further, on June 8, 2022 and March 1, 2023, the Company
acquired 16,50,00,000 - 12.17% (efective yield) Non-cumulative, Non-convertible,
Non-Participating, Redeemable Preference Shares
(‘NCRPS') and 7,40,00,000 - 12.17% (effective yield)
NCRPS, respectively of face value 10/- each of TRF on a preferential
basis aggregating to 165 crore and 74 crore, respectively.
The OCRPS and NCRPS have been acquired to assist TRF in
repayment/prepayment of the whole or a part of it's existing indebtedness (including
financial and operational creditors), additional working capital requirements, payment
against long-outstanding vendor dues, to seek their support towards material supplies for
completing legacy projects and delivering other committed orders and/or for other general
corporate purposes.
The voting rights of the Company as a preference shareholder of TRF
will be as per the provisions of the Companies Act, 2013 read with the Articles of
Association of TRF. Further, the equity stake of the Company in TRF remains at 34.11%.
c) Investment in Tata Steel Mining Limited
On June 14, 2022 and August 30, 2022, the Company acquired 1,04,75,196
equity shares and 2,81,98,433 equity shares, respectively of face value 10/- each of Tata
Steel Mining Limited (‘TSML') at a premium of 9.15 per share on a preferential
basis aggregating to ~ 20.06 crore and ~ 54 crore, respectively. TSML continues to be a
wholly-owned subsidiary post both the investments. d) Acquisition of Neelachal Ispat Nigam
Limited through Tata Steel Long Products Limited and investment in Neelachal Ispat Nigam
Limited
On July 4, 2022, the Company through its listed subsidiary Tata Steel
Long Products Limited (‘TSLP'), completed the acquisition of 93.71% stake in
Neelachal Ispat Nigam Limited (‘NINL'). The acquisition was completed for an
aggregate consideration of 12,100 crore as per the terms and conditions of the Share Sale
and Purchase Agreement entered into by the Company in accordance with the process carried
out by Department of Investment and Public Asset Management ('DIPAM') and consequently,
NINL became a step-down subsidiary of the Company. During the year, the
Company directly acquired equity shares aggregating to 5.24% in NINL by way of purchase of
equity shares from minority shareholders and by acquiring additional equity shares issued
by NINL on preferential basis. As on March 31, 2023, TSLP holds 92.68% and the Company
holds 5.24% in NINL. e) Investment in Tata Steel Downstream Products Limited
During the year under review, the Company acquired 7,11,743 equity
shares of 10/- each at a premium of 130.50 per share, of Tata Steel Downstream Products
Limited, a wholly-owned subsidiary of the Company, on a preferential basis for an amount
aggregating to 10 crore. f) Investment in Tata Steel Advanced Materials Limited
During the year under review, the Company acquired 4,26,93,207 (75.94%)
equity shares of Tata Steel Advanced
Materials Limited (‘TSAML') from Tata Steel Downstream
Products Limited, for an aggregate amount of 54.69 crore. Further, on March 23, 2022, the
Company acquired the balance 1,35,29,959 (24.06%) shares held by Tata Steel Downstream
Products Limited for an aggregate amount of 17.33 crore. Post the said acquisition, TSAML
has become a direct wholly-owned subsidiary of the Company. The shares of TSAML are of
face value of 10/- each and were acquired at a premium of 2.81 per share. g) Investment in
Tata Steel Utilities and Infrastructure Services Limited
On January 31, 2023 and March 23, 2023, the Company acquired 26,97,674
and 4,65,116 equity shares, respectively of face value 10/- each of Tata Steel Utilities
and Infrastructure Services Limited (‘TSUISL') at a premium of
205/- per share, on rights basis for an aggregate amount of
approximately 68 crore. TSUISL continues to be a wholly-owned subsidiary of the Company.
3.Divestments
Divestment of partial stake in AI Rimal Mining LLC, Oman
On October 3, 2022, T S Global Holdings Pte. Ltd. (‘TSGH'),
an indirect wholly-owned subsidiary of the Company, set up in South-East Asia, concluded
the divestment of its 19% equity stake in Al Rimal Mining LLC (‘Al Rimal') to
Oman National Investments Development Company (‘Tanmia') pursuant to an
agreement entered into between TSGH and Tanmia, thereby reducing its equity stake in Al
Rimal from 70% to 51%.
4. Financing and Debt Redemption a) Issue of Non-Convertible Debentures
During FY2022-23, the Company allotted the following Unsecured, Rated,
Listed, Redeemable, Non-Convertible Debentures (‘NCDs') to identified investors
on a private placement basis:
No. of NCDs |
Face value ( ) |
Amount
(Rs. crore) |
Date of allotment |
Coupon |
Tenure |
Date of Maturity |
| 5,000 |
10,00,000 |
500 |
September 20, 2022 |
7.50% (Series 1) |
5 years |
September 20, 2027 |
| 15,000 |
10,00,000 |
1,500 |
September 20, 2022 |
7.76% (Series 2) |
10 years |
September 20, 2032 |
| 2,15,000 |
1,00,000 |
2,150 |
February 27, 2023 |
8.03% |
5 years |
February 25, 2028 |
The NCDs are listed on the wholesale debt market segment of BSE
Limited.
b) Redemption of NCDs
The Company has redeemed the following NCDs on the relevant due date as
per their respective terms of issue:
Amount (Rs. crore) |
Date of allotment |
Coupon |
Date of Maturity |
| 1,025 |
April 17, 2020 |
7.85% |
April 17, 2023 |
| 510 |
April 22, 2020 |
7.85% |
April 21, 2023 |
| 1,000 |
April 27, 2020 |
Floating Rate |
April 27, 2023 |
| 500 |
April 30, 2020 |
Floating Rate |
April 28, 2023 |
c) Credit Rating
During the year under review, international rating agency, S&P
Global Ratings reaffirmed Tata Steel's Corporate Family Rating at ‘BBB-‘
and revised the Outlook to Positive from Stable. Further, Moody's also rea rmed the
rating to ‘Ba1' and revised the Outlook to Positive from Stable due to the
Company's track record of good operating performance and conservative financial
policy.
During the year, the domestic rating agencies, India Ratings and CARE
had rea rmed Tata Steel's long term credit rating at AA+. India Ratings revised the
outlook from Stable to Positive. d) First and Final Call on Partly Paid-up Equity Shares
On February 9, 2021, the Board of Directors of the Company approved the
making of the first and nal call of 461/- (comprising 7.498 towards face value and 453.504
towards securities premium) per partly paid-up equity share (‘First and Final
Call') on 7,76,36,788 outstanding partly paid-up equity shares of face value 10/-
each (paid-up: 2.504 per share), issued by the Company, on a Rights basis, pursuant to the
Letter of OFFer dated January 22, 2018. As on March 31, 2022, the Company had 2,23,288
partly paid-up equity shares of face value 10/- each (paid-up: 2.504 per share) on which
the first and nal call money remained unpaid.
On March 18, 2023, the Stakeholder Relationship Committee approved the
conversion of 3,16,580 partly paid-up shares of face value of 1/- each (31,658 partly
paid-up equity shares of face value of 10/- each on which 2.504 was paid-up).
5. Corporate Actions a) Sub-division of Ordinary Shares of the Company
On May 3, 2022, the Board of Directors of the Company, considered and
approved the proposal for sub-division of 1 (one) equity share of the Company having face
value of 10/- each into 10 (Ten) equity shares of the Company having face value of 1/-
each (‘sub-division') and consequential amendments in the Capital Clause of the
Memorandum of Association of the Company and Articles of Association of the Company,
subject to the approval of the Shareholders of the Company and other necessary approvals.
The said proposal was approved by the Shareholders of the Company at the Annual General
Meeting held on June 28, 2022. The Record Date for the sub-division was set as July 29,
2022 and consequently, the face value of the equity shares of the Company (fully paid-up
and partly paid-up) was sub-divided to 1/- each from 10/- each.
b) Forfeiture of shares
The Board of Directors, at their meeting held on March 27, 2023
considered and approved the forfeiture of 19,16,300 partly paid-up equity shares of face
value 1/- each (prior to sub-division 1,91,630 partly paid-up equity shares of face value
of 10/- each and paid-up 2.504 per share) on which the first and nal call money was not
paid.
6.Operations
MoU with Punjab Government to set up a steel scrap based electric arc
furnace steel plant
On August 26, 2022, the Company signed a Memorandum of Understanding
('MoU') with the Government of Punjab for setting up a 0.75 MnTPA long products steel
plant with a scrap-based electric arc furnace (‘EAF'). This green eld facility
will be set up at Kadiana Khurd, Hitech Valley, Ludhiana in Punjab.
The state-of-the-art EAF-based steel plant would produce construction
grade steel rebar under the Company's agship retail brand ‘Tata Tiscon',
which would enable Tata Steel to further augment its market presence in the construction
segment.
This is a part of the Company's commitment to investing in a
circular economy and transitioning to low-carbon steelmaking through the steel recycling
route. It is a step aligned to the Company's goal of achieving Net Zero carbon
emission by 2045.
E. Sustainability
Tata Steel is committed to sustainability and the environment. In
alignment with Tata group sustainability initiative, 'Project Aalingana', the Company is
committed to achieving Net Zero emissions by 2045 and is working on a decarbonisation road
map that combines short, medium, and long-term goals.
Tata Steel's philosophy of steel production is deep rooted on the
principles of zero harm, resource e ciency, circular economy, minimising ecological
footprint and care for community & workforce. The Company has adopted the United
Nations Sustainable Development Goals
(‘UN SDGs') and linked it with its long-term strategy and has
revised its sustainability targets. The Company's strategy is to significantly reduce
carbon emissions, minimise fresh water intake, become leader in nature based solutions,
and include critical supply chain partners for Company's ESG risk assessment.
The Company takes it as its inherent responsibility to protect the
rights of its stakeholders. The Company has adopted the Business and Human Rights Policy.
The Policy is in consonance with the Universal Declaration of Human Rights, the UN
Principles on Business and Human Rights, and the International Labour Organization
Convention and Indian laws.
Tata Steel had identified supply chain sustainability as a key material
issue and in order to take this forward, the Company had adopted the Tata Steel
Responsible Supply Chain Policy. During the year under review, the Company took
initiatives in deployment of the Policy through various communication channels, including
a framework for shared growth between its suppliers and distributors for a sustainable
supply chain.
The Company continues to be committed to serve its customers through a
portfolio of products and disclosure of the environmental impact of its products by using
the Life Cycle Assessment (‘LCA') methodology.
To accelerate its efforts in becoming a leader in product
sustainability, Tata Steel strives to use LCA tool efectively in its products. During the
year under review, the Company has undertaken LCA studies based on worldsteel LCA
methodology guided by ISO 14040 and ISO 14044. Aligning with the goal to cover all
steelmaking and downstream sites under LCA, this year we have completed the LCA study for
downstream facilities at TSM Khopoli, TSM Sahibabad and CRC West covering a total of 8 di
erent product categories. In FY2022-23,
Tata Steel published its first Environment Product Declaration ('EPD')
for Steel Rebar for facilities in Jamshedpur Works as well as other manufacturing SPC
followed by EPD for Steel structural hollow section under the brand Tata Structura
manufactured at Tata Steel Tubes division along with other di erent production units and
EPD for Steel Hot Rolled Coil covering all manufacturing locations across Jamshedpur,
Kalinganagar and Meramandali. Also, Tata Ezyfit, which is a brand of innovative tubes for
windows & door frame section received GreenPro certi cation. We have also carried out
a LCA study for one of our Fibre Reinforced Polymer ('FRP') product to understand its life
cycle environmental impact. In alignment to the Company's sustainability strategy, it
aspires to obtain eco-labels (GreenPro and Environment Product Declaration) for its key
products and proactively respond to its customers who seek product related sustainability
information. In Europe, the Company has published Environmental Product Declarations with
entire product range of the European operations certi ed with BES 6001 sustainable
sourcing standard.
Further, towards sustainability, Tata Steel is supporting Task Force on
Nature Related Disclosures in developing a risk management and disclosure framework to
factor nature-related risks and opportunities while making financial and business
decisions.
The Company continues to integrate Biodiversity within its business
ecosystem. Towards this, the Company has aligned its actions with the National and
International Biodiversity Targets and the Sustainable Development Goals. To augment the
Company's e orts in Biodiversity conservation, Tata Steel has constituted Centre of
Excellence for Biodiversity Management to strategically formulate and implement
Biodiversity Management Plans (‘BMPs') across locations. As on March 31, 2023,
the Company has implemented BMPs across 15 locations in India.
Across Europe, there is a growing recognition that steelmakers need
government support to decarbonise. Steelmakers and governments in a number of countries
are working together to develop their decarbonisation plans, with such discussions
covering selection of suitable technologies, access to abundant green energy supplies and
infrastructure at a competitive price, possible scal support from the national
Governments, and the need to create a competitive regulatory environment. Tata Steel has
been involved in detailed engagement with the Dutch, UK and Welsh Governments on these
complex themes.
Tata Steel Nederland and the Dutch government signed an Expression of
Principles in FY2022-23 to transition to low COFF steelmaking, with an ambition to reduce
COFF emission by 5 MnT by 2030.
1.Environment
Being a responsible corporate citizen, Tata Steel continues to strive
for environmental sustainability across operations. To achieve this, the Company has taken
necessary initiatives for environmental protection and addressing environmental concerns
associated with its operations and supply chain. The Safety, Health & Environment
Committee of the Board provides oversight and necessary guidance on safety, health and
environmental matters. The Company has dedicated Environment Management teams at its key
operating locations, globally. As part of responsible advocacy, the Company syndicates its
stance with key stakeholders on environmental policy matters including regulatory issues
and actively participates in various national and international forums on diverse
environmental issues.
Guided by our Code of Conduct and internal corporate policies, the
Company endeavours to set steel industry benchmark in environmental performance. With the
strategic objective of ‘Leadership in Sustainability', Tata Steel has achieved
significant reduction in its environment footprint over the years through its commitment
of being a responsible stakeholder in the community. The Company has taken several
initiatives in areas of resource conservation, pollution control and waste management,
amongst others. Tata Steel has adopted environment friendly processes, best available
technologies, real-time monitoring systems and has IT enabled real-time dashboards to
facilitate environmentally-friendly operational control. The Company has digitised the
systems of real-time monitoring of environmental parameters to faster identify probable
environmental impacts of its operations in order to undertake mitigating actions to
control environmental pollution. Tata Steel maintains transparency of its environmental
performance through various disclosures to stakeholders from time to time. During the year
under review, Tata Steel has taken initiatives to retain its Indian benchmark position in
stack dust emissions and fresh-water intake.
During the year, Tata Steel in Netherlands accelerated the measures
under the Roadmap+ programme by implementing measures to reduce dust, noise, odour and
other emissions. In April 2022, the Company commissioned several new slag pits with a
mobile covering to reduce dust, which is expected to reduce dust emissions by
approximately 80%. Tata Steel is also building windbreaker screens of around 18 metres
height and around a kilometre length around the raw material storage facilities, thereby
reducing wind speeds and the associated dust dispersal.
Tata Steel is also constructing a dedusting plant at it's IJmuiden
Pellet Plant, which is expected to be completed in 2023. The dedusting plant is expected
to reduce emissions of lead by 70%, alongside reduction in dust.
2.Climate Change
Climate change is one of the most pressing issue the world faces today
and the Company recognises its obligation to work towards mitigation of climate change
related risks and strives to reduce its carbon footprint especially of steelmaking
facilities across all geographies. The Company is committed to be aligned with national
commitments on climate change in geographies we operate in.
The Company is signatory to the Task Force on Climate-related Financial
Disclosures (‘TCFD') and has identified transition risks and opportunities.
Specific mitigation and contingency plans for each of the identified risks have been
integrated within the Company's long-term strategy.
Tata Steel is collaborating with wide range of organisations in
developing the ecosystem to mitigate climate change transition risk. To move closer
towards lower carbon route, the Company is working towards natural gas based DRI kiln and
be future-ready in use of hydrogen by replacing natural gas. The Company continues to work
towards integrating hydrogen gas in iron making processes as a non-fossil fuel and
reductant. It is aligned with Tata Group's aspiration to achieve Net Zero by 2045.
In India, the Company has:
• reduced its carbon footprint by improving resource efficiency
through adoption of best available technologies & good practices and strives to reduce
COFF emission intensity significantly with intermedial goals for 2030; • identified
physical risks present at steel plant sites of operation and is developing mitigation
strategies for the same; • collaborations with various academia, startups and other
reputed organisations to work towards decarbonisation with an aspiration to emerge as a
business leader across the hydrogen and CCU value chains.
During the year under review, Tata Steel has taken initiatives to
retain its global benchmark positions in COFF intensity of IJmuiden Plant in Netherlands
and Jamshedpur Steel Works in India amongst Blast Furnace-Basic Oxygen Furnace (BF-BOF)
based steelmaking facilities. Enhancing use of recycled scraps in steelmaking, renewables
in electricity mix, energy e ciency of production processes and multiple improvement
initiatives across value chain have enabled this improvement.
Tata Steel has undertaken a detailed and systematic assessment of
Physical and Transition risks in a Climate Risk assessment focusing on its key steelmaking
sites in India, the Netherlands and the UK. The assessment was conducted by an independent
third-party advisor and was fully aligned with the recommendations of the Taskforce on
Climate Related Financial Disclosures. The outcome of the risk assessment has been
incorporated in the Climate Action Report included in the Integrated Report.
3.Health and Safety
The Company is deeply committed to prioritising Health and Safety
Management and achieving 'Zero Harm.' In order to accomplish this, the Company is pursuing
six strategies, which include building safety leadership capabilities at all levels,
reinforcing contractor safety management standards to ensure zero harm to contract
employees, improving the competency and capability to identify hazards and manage risks,
enhancing road and rail safety throughout the Company, striving for achieving excellence
in process safety management, and establishing industrial hygiene alongwith improving
occupational health.
During the year under review, the Company undertook several
initiatives, including the establishment of a Practical Safety Training Centre in
Jamshedpur. This initiative exemplifies the Company's commitment to improve risk
perception of the workforce by imparting hands-on training on di erent modules and
leveraging advanced technologies to visualise potential hazards through virtual reality
scenarios. Additionally, the Company has introduced a Behavioral Safety Theme Park, which
serves as a forum for promoting learning through interactive discussions and fostering a
cross-learning culture.
The Company has also made efforts to alleviate congestion of heavy
vehicles on the road by constructing a new transport park at Meramandali, capable of
accommodating 110 trailers/trucks, complete with amenities such as restrooms and canteens
for heavy vehicle drivers. Furthermore, to reduce the risks posed by the simultaneous
movement of heavy vehicles and two-wheelers on the road, two-wheeler entry has been
restricted at Tata Steel Meramandali ('TSM') and Tata Steel Kalinganagar ('TSK'). A
segregated timing has been implemented at Tata Steel Jamshedpur ('TSJ') to regulate the
movement of two-wheeler and heavy vehicle and prevent their simultaneous movements.
With a view to promote a positive safety culture throughout the
organisation, the Company had organised the Safety, Health, and Environment Reward &
Recognition Function for the third time. This programme aims to recognise and reward
employees and departments for their remarkable contributions towards maintaining the
safety standards and drive the positive safety culture at all levels within the
organisation. The benefits of this programme have also been extended to cover vendor
partners and non-officers. The safety of contractors has continuously been a primary focus
for the Company and the organisation has made considerable e orts to enhance the safety
competency of its workforce by training them on simpli ed safety standards through
e-modules and providing them safety training at Safety Leadership Development Centre at
Jamshedpur. Contractor Safety Management System ('CSMS') is being deployed in all
stockyards and Steel Processing Centers ('SPCs') of Tata Steel India.
The implementation of the 'Centre of Excellence' ('CoE') methodology
for Process Safety has gained traction, leading to improved process safety competencies
among employees. At present, the CoE-driven process safety initiative has been rolled out
in most of the high hazard departments at TSJ, TSM & TSLP. With an endeavor to create
a safer, more resilient, and sustainable organisation, identi cation of the top five
safety risks across all departments of the Company was done and implementation of
strategic risk mitigation plan is in progress. The Company also organised advance level
training programme on Process Safety which was conducted by National Examination Board in
Occupational Safety and Health (‘NEBOSH') certi ed experts.
The Company has been working towards Occupational Health, and has
implemented a comprehensive Industrial Hygiene programme which includes identification of
occupational health hazards, risk analysis, and assessment of actual exposure through
hazard quanti cation. The programme also focusses on implementation of hazard control
measures to maintain minimum exposure level and to reduce occupational health related
risks. During the year under review, over 500 awareness sessions on ‘Health &
Wellbeing' have been organised across Tata Steel India for the employees and contract
employees. Further, the Company has been recognised for ‘Wellness at Workplace'
by World Steel Association in Safety & Health Excellence Recognition Programme 2022.
Fatality of contract employees has been the topmost safety concern for
the Company. It is with deep regret that Tata Steel Limited reports four (4) fatalities
during the year under review. The Company launched hazard specific Safety campaigns viz.
‘Slip/Trip/Fall', ‘Hands are not Tools', ‘Road Safety', etc.
across locations to address gaps and improve safety awareness. Lost Time Injuries ('LTIs')
at Tata Steel (India & South-East Asia) have reduced by 16% from the previous year.
At Tata Steel Europe, Health and Safety continues to be of utmost
priority. It is with deep regret that Tata Steel UK reports one (1) fatality during the
year under review. Both at TSN and TSUK, an integrated health and safety management system
ensures a consistent approach to health and safety throughout the organisation. The Health
and Safety Management System follows the Plan, Do, Check, Act management model, which is a
process of continuous improvement.
4.Research and Development
The Company has embarked on a journey for technology leadership and has
made significant progress on several fronts in Research and Development
(‘R&D'). Working on the theme of ‘Value from waste', the R&D
team has developed a novel technology to produce synthetic anode material from coal tar,
which is a by-product of steel. This material exhibits higher specific capacity compared
to commercially available anode materials. Further, a process has also been developed to
use low grade manganese ore for the synthesis of lithium manganese oxide for cathode
application. The said anode and cathode materials have been demonstrated in 48V and 20Ah
battery packs. The Company has successfully demonstrated a solid state thermo-electric
generator (‘TEG') to harness green electricity of 1 kW/hr from low grade waste
heat of ammoniacal liquor at TSK.
Tata Steel has been working towards digitisation and key highlight in
this regard is the development of a first principle-based model by exploiting of advance
analytics & modelling tools. The model has been implemented on
Integrated Computational Materials Engineering (‘ICME')
framework to assist new product development related to Advanced High Strength Steels. The
model can predict microstructure as well as mechanical properties along the length of the
rolled coils and further enable exible control of the run-out-table at the Hot Strip Mill.
The R&D team has had some noteworthy new product development
projects which include cryogenic treated bearings for automotive segments which can extend
life of bearings by at least two-folds, high-strength steels with high stretch
angeability, and successful trial production of API X65 sour for H2 transport application.
The Company has also been working towards achieving cost
competitiveness through increasing e ciency of the existing processes. These include
implementing of a newly designed hydrocyclone at Noamundi and Khondbond Wet plant which
has improved the yield of the hydrocyclone plant up to 12%. The Company has deployed Super
Absorbent Polymer (‘SAP') in blast furnaces which resulted in reduction of
moisture in coke by 2-3%. Further, the Company has successfully installed a Microbolometer
at ‘F' blast furnace which has resulted in coke rate reduction of ~30kg/thm.
The Company has been engaging with leading academic institutes in India
and across the world to build strong industry-academia partnership for creating strategic
advantages for the Company. During the year under review, the Company has set up a Centre
for Innovation in Mobility (‘CIM') at IIT Madras Research Park and an Innovation
Centre on Mining and Mineral Research at the Indian Institute of Technology (Indian School
of Mines), Dhanbad.
The Company's focus on Intellectual Property creation has further
intensi ed, and during the FY2022-23, Tata Steel has filed over 130 new patent
applications, which is highest ever number by the organisation in any given financial
year. A number of these patent applications have been harvested from the collaborative
projects with academia and research institutes.
In UK, the R&D work was focussed on five major themes – (a)
Digitalisation (b) Future of Mobility (c) Sustainability (Rs.) Innovations in Packaging
and (e) Collaborative Research with the UK Innovation Ecosystem.
The TSUK R&D is actively engaged in using data analytics and
process simulation technologies to improve plant processes. The Company has successfully
implemented the intervention of Monitoring and Assessment of the Run Out Table Banks in
the Hot Strip Mill at Port Talbot and development of Through Process Record
(‘TPR') sets that track the production history of the products that the user is
interested in and collects process data from each of the manufacturing processes along the
product route. This methodology has been utilised to investigate and monitor datasets on
projects such as surface defects in Surahammar, caster laminations, mechanical properties
of DP800 and DP800GI products, full nish through process yield, coil weights in Shotton,
body strength test data of tubes, among others.
The Company has developed a material database, Aurora Online which is a
type of computer modelling design to check manufacturability and crash performance before
any physical prototyping or tool manufacture. This has been recognised by users as
industry leading because of the accuracy of its data and associated expertise. The R&D
continues to engage closely with its global automotive customers through Value Analysis
Value Engineering
(‘VAVE') and Early Vendor Involvement (‘EVIs')
programmes which help the Company to strengthen the position of new grades of its steel
products in comparison to competitive products e.g. Aluminium.
With a view to make its functioning sustainable, the Company is
presently looking into new bio-based or inorganic insulation materials as well as
recycling options for existing Poly Iso Cyanurate (‘PIR') based composite
panels. Further, in the UK Colors Business, sustainable plastisol carbon products are
being developed that can reduce the carbon emissions by one third. The use of curing
technologies such as ultra-violet and electron beam curing are also being explored instead
of traditional technologies which will allow for 33% of carbon emission reduction. Tata
Steel produces over 400 KT coated products at its Packaging plant in Trostre. The R&D
at UK are currently establishing a new ‘can' end production facility to support
Trostre. Further, in order to increase the capability, R&D is collaborating with the
University of Warwick, to produce a full set of tools to manufacture Easy Open End
(‘EOE') can lids. This will allow R&D to run trials on the various coatings,
grades and gauges for commissioning and enable Tata Steel to remain competitive in the
market. The UK Research & Innovation (‘UKRI') Council funds projects that
can demonstrate models and prototypes at a pre-commercial stage. Within this framework,
the UK operations of the Company has been successful in applying and winning grants to
work on future ready materials and technologies. The notable ones being novel coating
technologies enabling ‘wet on wet' paint coating of steel strips, new steel
grades for next generation of electric vehicles and bi-steel electric motor core.
In Netherlands, the Company has progressed in its product developments
by introducing a total of 10 new products which include formable grades for packaging,
engineering grades (e.g. line pipe but also Hyperloop), and the expansion of the range for
Serica FLOTM. Further, there has also been an initiative for various process improvements
like the introduction of a new run-out table cooling control in the Hot Strip Mill
(‘STORM'), a major step and part of the whole investment in the HSM to expand
its capacity, and the implementation of High Turbulence roll cooling in HSM2, which allows
a better cooling at significantly lower energy consumption. Further, R&D has been
vital in getting many potential new products to reach higher level of Technology Readiness
throughout the year and supported the customer interactions on a technical level. R&D
continues to help the Company in its operations at Netherlands and its customers in its
drive to become more sustainable and more environment friendly. Within R&D, work
continues on HIsarna project as a novel and more exible reduction technology for iron
production, but also a special programme on decarbonisation is now in full swing. This
programme especially addresses the aspects of the new DRI based production route and will
support the shorter term preparations for the investments as well as the longer term
optimisation of the use of these installation. During the year under review, the focus of
R&D has also been on the ‘data driven steel' programme, that links to the
Advanced Analytics expertise in technical and develops data-intense through-process
solutions.
5.New Product Development
In line with the Company's vision to become the best-in-class
manufacturer and preferred choice of steel mill in the domain of presence, Tata Steel has
continued its focus on new product development. During the year under review, the Company
developed 68 new products in India. In the Hot Rolled Flat Products of high strength
automotive grades, the Company has successfully developed the AHSS-HS900 for bulk trailer
application which has resulted in a weight reduction of 20% by usage of thinner and
stronger HS900 replacing the low strength thicker grade. AHSS-HS900 has demonstrated light
weighting and higher pay load capability. Further, the development of JSH590B with 100%
Hole Expansion Ratio (‘HER') for control arm application is another promising
development over existing grades with 75% HER. On hot-rolled automotive segment,
TSM-Meramandali has successfully developed E46 for long member application and YST38 for
wheel disc application in heavy commercial vehicles along with SAPH 370 and Grade-CF for
car wheel application. Development of ASTM Gr-50-Type-1 for PEB application from TSM
further strengthens the supply chain.
In the Oil and Gas segment, the Company has successfully completed the
trial production and ERW pipe making of X42Sour and X60Sour with Hydrogen Induced Cracking
(‘HIC'), Sulphide Stress Cracking (‘SSC') and Stringent (80%
Actual Yield Strength i.e AYS) Stress-Oriented Hydrogen Induced
Cracking (‘SOHIC') guarantee. API X65Hydrogen for 100% gaseous hydrogen
transport has been cast and rolled under trial production route. 16 inches ERW pipes have
been made from the coils produced with stringent guarantee on impact toughness, drop
weight tear test and fracture toughness at -29?C, HIC, SSC and SOHIC. In Lifting &
Excavation (‘L&E') and Engineering segment, the Company has developed S700MC
for telescopic boom arm application for one of its customers and S355MC with impact
toughness guarantee at -48?C for arctic region transformer cover application, which
constitute other significant developments leading towards import substitution.
In the Cold Rolled and Coated Products Technology, the Company has
secured approvals from two-wheeler manufacturers for Chromium-free secondary coated
Galvannealed fuel tanks of Bharat Stage VI (BS-VI) compliant two-wheelers. Through these
approvals, the Company has demonstrated its continuing commitment to environment by
partnering with customers and enabling implementation of critical BS-VI technology in
two-wheelers. These approvals are also a major milestone in Company's intent to make
its secondary coatings Cr-free. In CRCA products , development of HSLA340 for tube
application using a leaner chemistry, and IFHS390 for automotive panel application are
worth mentioning. IFHS390 from Development of 0.65-Si, Cold Rolled Non-Grain Oriented
('CRNO') steel for electrical motor application is another significant development.
In the long products segment, the Company has developed high strength,
high ductility 6mm air cooled rebars with superior weld shear strength for welded wire
mesh which will help in expediting construction process. Further, the Grade Fe 550D
Corrosion Resistant Steel Rebar was developed to cater to the requirement of high strength
corrosion resistant rebar. These are first in India products. Addressing the customer
requirement of high-speed direct drawing wire rod grade, the Company has developed HC58A
wire rod which could be drawn at 10m/s to ne wire. Further, Grade HC78BX wire rod was
developed with lower level of decarb and surface defect for rope application.
In Tata Steel UK, 12 new products were launched during the year. These
launches cover a wide range of high value products and end applications for automotive,
engineering, renewables and construction markets for both the UK and export opportunities.
During the year under review, the Company launched new off-site manufactured construction
solutions with Catnic Matrix and Trimawall Fast-Fit. These enable quicker, safer and
standardised onsite construction. In the renewables sector, the Company launched
Magizinc? for Solar S450 product which has 25 years guarantee. Additionally, the
Company's Hot Rolled Dry specifications which were certi ed to ASTM standards, to
enable the products to be used across the NAFTA region for export.
In Netherlands, the Company has launched 10 new products across the
Automotive, Engineering, Packaging and Construction end-markets in the FY2022-23.
In the Automotive segment, the Company launched the DP600-GI Hyperform
product, which offers improved forming capabilities resulting in weight saving and yield
improvement for Original Equipment Manufacturer (‘OEMs'). Further, the launch of
C45 medium carbon grade has led to further diversi cation of the portfolio for reroller
customers.
The agriculture sector is served by 27MnCrB5, a new product which is
used to produce harrow discs which results in a wider range of products of the Company.
The Company also launched 3 products in the packaging sector which included variants of
TS245 to cater to the high-end packaging market. Building systems launched Montana R12
Montaline?, which offers wide widths for smooth fa?ade panels for application in
commercial buildings in the German, Swiss and Dutch markets.
6.Customer Relationship
During the year under review, the Company focused on strengthening its
relationship with customers in line with the theme for the year ‘Vision Next'
– strive to own the future. Despite the global headwinds, the Company remained
steadfast in its belief that customer focus can lead to superior performance. Various
initiatives and activities were undertaken to elevate the customer experience. The digital
initiatives and platforms served as a major backbone in achieving a new customer base,
enabling more customer centric engagements, and easing the order ow.
The Company continued its efforts to enhance its relationship with B2B
automotive OEMs and their large value chain partners. Considering the changing business
requirements and to serve the customers better, the Company focused on the fast growth of
the Light Commercial Vehicle segment, technical services offerings such as Vehicle
Teardown and Benchmarking Services, Early Vendor Involvements ('EVIs') on upcoming models
amongst others and broadening supply chain capabilities through new processing partners.
Further, the Company's agship initiative for weight and cost reduction - VAVE (Value
Analysis & Value Engineering) and supply chain visibility through COMPASS platform,
has enhanced value driven engagements with customers.
In servicing B2B non-automotive segment (IPPE - Industrial Products,
Projects and Exports), the Company entered into a MoU with one of the key players in Oil
and Gas Sector for development of hot rolled steel for green hydrogen pipeline. The
Customer Service Teams ('CST') with key customer accounts continued to play a pivotal role
in re-enforcing and nurturing the relationship with the Company. VAVE initiatives for
L&E segment also helped in customer value creation. As a part of the digital
initiatives, the Company has increased the onboarding of customers on the COMPASS platform
covering ~67% of sales while continuing to add new customised features, improving the User
Interface / User Experience, introducing mobile tracking, mobile application amongst
others. The Company has also collaborated with various academia and industry bodies to
increase the usage of Flat products in the construction segment in India. Knowledge summit
‘Wired2Win+' for Wire Rod customers was relaunched for enhancing customer
connect through networking and cross market knowledge sharing. In partnership with our
overseas customers, first ever Electronic B/L for imports into Turkey was pioneered.
The MSME Sector is the largest provider of employment in the country
and the Company attaches a lot of signi cance and value in serving them well. In order to
address the requirements of the MSMEs, the Company offers branded products which are
uniquely positioned to meet their application needs. The Company reaches out to its MSME
customers through an elaborate All India distribution network. The Company has undertaken
multiple engagement initiatives in a phygital manner on the ECAfez Qualithon platform.
Some key offine initiatives include, customised microsegment meets like
‘Ducticon' (for ducting & HVAC customers) & ‘Panorama' (for
panel customers) which were conducted along with industry associations, knowledge exchange
& capability building initiative, ‘insIITe', was held in collaboration with
IIT Bombay and multiple ECA Connects were held across the country to capture key market
trends, resolve customers' shop oor issues and strengthen customer relationship.
Online initiatives like Skilling India, Tech Talk and Safety First have helped in
improving the knowledge base of customers by connecting more than 500 ECA customers
online.
The construction landscape in India is evolving rapidly and is becoming
more challenging. To address the growing needs in this sector, the Company has been
working towards designing customised solutions as against conventional methods thereby
generating value in the form of savings in time, cost and manpower for its long products
customers. Platforms like ‘Building Bonds' and ‘Converse to Construct'
have helped to facilitate the interactions of Channel Partner end-customers and in uencers
respectively with the senior leadership of the Company. During the year under review, 4
Building Bonds and 8 Converse to Construct events were organised. Similarly, across 4
‘Igni8: The Spark', monthly webinar sessions, success stories of Channel
Partners and segment specific knowledge was shared in collaboration with Academia and
Industry experts.
Tata Steel brand offerings (Tata Tiscon, Tata Shaktee, Tata Kosh) to
the retail consumers have attained respect and recognition by virtue of the quality and
the value that they have delivered and continue to deliver.
During FY2022-23, Tata Tiscon through the Individual House Builder (IHB
rebar brand) enabled over 6 lakh consumers to build their dream home. Under the Golden
Home Consumer (having purchase volume > 3T) initiative, the brand connected with over
26,000 consumers. Further, over 500 ‘Ask Experts' camps were conducted across
the country, with an aim to provide guidance in home construction to IHBs. ‘Stories
of Joy' – a consumer testimonial series was also curated with over 30 stories
released during the year to capture the home building journey of consumers across the
country.
The Company's agship galvanised brands, Tata Shaktee & Tata
Kosh organised the 3rd edition of Nexplore, the Annual Dealer Meet where the Company
engaged with the top 250 dealers & fabricators. As part of Farmers Day celebrations,
22,000 farmers (consumers) were connected directly through Kissan Diwas Meets which was
anked by an ATL (Above the line) campaign, reaching out to 74 million people. Through
‘Gaon Gaon Shaktee ki Chaon' a rural consumer van activation campaign, 51,000
prospective consumers were directly reached out on a daily basis. In addition to this,
through the ongoing fabricator meets, Dealer Meets, Sub-Dealer Meets and Consumer Meets
nearly 15,000 fabricators, 8,000 dealers, 600 sub-dealers and 1 lakh consumers were
connected directly and further reaching out to 84 lakh people through various social media
platforms.
Company's two solutions offering – Tata Pravesh (Steel doors
and windows) and Nest-In (smart steel based modular construction solution) have
consolidated their position as numero uno in a very competitive market. During the year
under review, Tata Pravesh became the number 1 brand in doors and fenestration industry by
volume of sales. The brand also continued to render superior and uniform customer
experience through augmented IT infrastructure and best in class industry practices
through Authorised Service Centre – SmartCare, increasing the presence to 14 numbers
from the 1st year baseline of 7 numbers. During the year under review, Tata Pravesh
achieved NPS Score of 60%. Additionally, Tata Pravesh expanded its Privileged Dealer
('PDP') network to 470 outlets.
Nest-In has implemented Sales Force Dot Com ('SFDC')
- a Customer Relationship Management ('CRM') for end-to-end monitoring,
control and a 360-degree customer view. A QR Code based authentication was also
implemented for assurance of genuine products to customers. The B2C segment of Nest-In has
upgraded to delivering luxurious and premium Nestudio. It has brought real-life
experiences to the customers using AR-VR (Augmented Reality - Virtual Reality) for key
solutions, offering a 360-degree view of select Nest-In projects.
In UK, the Company continues to expand its connection and engagement
with the customer base both within the UK market and overseas. TSUK focused communication
attention to key industrial events in the UK, such as the Resource & Waste Management
Exhibition, showcasing Company's construction offering at the ‘Grand Designs
Live' exhibition and leading the support of the ‘UK Metals Expo' at the NEC
in Birmingham, the first year for this event bringing together manufacturers and value
change companies in the metals industry. At the UK Metals Expo, the Company announced its
plan to pursue signing up to the Science Based Targets Initiative (SBTi) and the pursuit
of Port Talbot site accreditation to ResponsibleSteelTM. Business development activities
of the UK business led to a diverse range of successes across the global market. The
Company secured constructional steelwork for the forthcoming Guggenheim Museum in Abu
Dhabi. In the home market, sale of highly di erentiated products received global exposure
at the Commonwealth Games where several specialised products were used to construct a
number of the showcase stadiums. Noticeable success was achieved through the TSUK
e-commerce portal, Nexus, which launched to customers in the Engineering, Automotive and
General Sales sectors. TSUK won the prestigious Steelie award for the Life Cycle
Assessment tool which was developed to work with the customer to demonstrate the life
cycle benefit of steel in customer applications. In the Netherlands, the Company maintains
its differentiation strategy, which aims to increase the proportion of high margin di
erentiated products. As part of the strategy, the Company has launched various new
products in Europe during the year. These launches include major developments for the
engineering, automotive, packaging, and construction markets. In the digital area, the
Company has been navigating its competitive commercial landscape and recently set a new
direction to bolster the commercial strategy, harnessing digital technologies in a way to
create intelligent service solutions and products. The Company's platforms - Nexus
and Arisings, continue to offer customers an e-Commerce platform to sales and order
management.
In Europe, the Company is developing new green steel solutions and
strives to build and maintain partnerships with it's customers to create value
through sustainable steel production and responsible supply throughout the entire value
chain, tailoring offers that allow excellence in the client markets. In the Netherlands
and UK, the first low CO2 steel products were launched offering the market a Scope 3
emissions reduction, using a mass balanced approach through the carbon in-setting scheme
called Carbon Lite. Tata Steel has committed to reinvest all revenues from Carbon Lite
certi cates to further drive the de-carbonisation journeys of Zeremis for Tata Steel
Netherlands and Optemis for Tata Steel UK.
7.Corporate Social Responsibility
The objective of the Company's Corporate Social Responsibility
(‘CSR') initiatives is to improve the quality of life of communities through
long-term value creation for all stakeholders. The Company's CSR policy provides
guidelines to conduct CSR activities of the Company. The salient features of the Policy
forms part of the Annual Report on CSR activities annexed to the Board's Report. The
CSR policy is available on the website of the Company at
https://www.tatasteel.com/media/11804/tata-steel-csr-policy-latest-2019.pdf For decades,
the Company has pioneered various CSR initiatives. The Company continues to address
societal challenges through societal development programmes and remains focused on
improving the quality of life. During the year under review, the Company has impacted the
lives of over 3.15 million people from the most vulnerable sections of society, including
initiating a large-scale national programme in response to the COVID-19 pandemic. The
Company implements its CSR programmes primarily through the Tata Steel Foundation, which
works in close collaboration with public systems and partners. Through its CSR, the
Company envisions an enlightened, equitable society in which every individual realises
her/his potential with dignity through work with tribal and excluded communities to
co-create transformative, e cient and lasting solutions to their development challenges.
Through large-scale, proven Signature Theme Models of change, the
Company addresses core development gaps in India, while being replicable at global
platform. These include programmes on maternal and child mortalities, access to school and
learning enrichment for rural children, pan-India focus on key aspects of tribal identity,
and comprehensive development through empowerment of panchayats between the manufacturing
locations at Jamshedpur and Kalinganagar.
The Company also fosters Regional Change Models enabling lasting
betterment in the well-being of communities, prioritising those who are excluded and
proximate to its operating areas. The Company undertakes its CSR Programmes in areas of
health, nutrition, water, education, livelihoods, infrastructure, sports, disabilities,
grassroots governance and empowering the voice of women within communities.
During the year under review, the Company spent 480.62 crore on CSR
activities. The Annual Report on CSR activities, in terms of Section 135 of the Companies
Act, 2013 and the Rules framed thereunder, is annexed to this Report (Annexure 2).
In the UK, the Company strives to enrich its local communities and
contribute to their future economic and social wellbeing. Its programme of proactive
community partnerships embraces three aspects: health and wellbeing, environment, and
education and learning. The Company encourages employees to make an active contribution to
their local community by taking part in various social causes. The Company sponsors local
sports events and activities for children.
In the Netherlands, the Company maintains close relationship with
employees, customers, local residents, suppliers, the local business community, NGOs and
educational institutions and drives community development programmes and provides guest
lectures and workshops on various topics that support the Company's strategy to
become a green, clean and circular steel company. The Company continues to partner with
organisations on various social causes such as activities for primary and secondary
schools, social wellbeing of its local communities in the areas of education, environment
as well as health and well-being and coaching of children with learning difficulties
towards a healthy lifestyle. The Company also sponsors local activities and sports teams
and supports charities and children's events which promote community spirit and
brings improvement in Rs.elds of healthy eating, teamwork and behaviour.
F. CORPORATE GOVERNANCE
At Tata Steel, we ensure that we evolve and follow the corporate
governance guidelines and best practices diligently, not just to boost long-term
shareholder value, but also to respect rights of the minority. We consider it our inherent
responsibility to disclose timely and accurate information regarding the operations and
performance, leadership, and governance of the Company.
In accordance with our Vision, Tata Steel aspires to be the global
steel industry benchmark for value creation and corporate citizenship. Tata Steel expects
to realise its Vision by taking such actions as may be necessary in order to achieve its
goals of value creation, safety, environment and people.
Pursuant to the SEBI Listing Regulations, the Corporate Governance
Report along with the Certificate from a Practicing Company Secretary, certifying
compliance with conditions of Corporate Governance, forms part of this Integrated Report
& Annual Accounts 2022-23 (Annexure 3).
1.Meetings of the Board and Committees of the Board
The Board met seven times during the year under review. The intervening
gap between the meetings was within the period prescribed under the Companies Act, 2013
and the SEBI Listing Regulations. The Committees of the Board usually meet the day before
or on the day of the Board meeting, or whenever the need arises for transacting business.
Details of composition of the Board and its Committees as well as details of Board and
Committee meetings held during the year under review and Directors attending the same are
given in the Corporate Governance Report forming part of this Integrated Report &
Annual Accounts 2022-23.
2.Selection of New Directors and Board Membership Criteria
The Nomination and Remuneration Committee (‘NRC') engages
with the Board to evaluate the appropriate characteristics, skills and experience for the
Board as a whole as well as for its individual members with the objective of having a
Board with diverse backgrounds and experience in business, nance, governance, and public
service. The NRC, basis such evaluation, determines the role and capabilities required for
appointment of Independent Director. Thereafter, the NRC recommends to the Board the
selection of new Directors.
Characteristics expected of all Directors include independence,
integrity, high personal and professional ethics, sound business judgement, ability to
participate constructively in deliberations and willingness to exercise authority in a
collective manner. The Company has in place a Policy on appointment & removal of
Directors. The salient features of the Policy are:
•It acts as a guideline for matters relating to appointment and
re-appointment of Directors
•It contains guidelines for determining quali cations, positive
attributes of Directors, and independence of a Director
•It lays down the criteria for Board Membership
•It sets out the approach of the Company on board diversity
•It lays down the criteria for determining independence of a
Director, in case of appointment of an Independent Director The Policy is available on the
website of the Company at
https://www.tatasteel.com/media/6816/policy-on-appointment-and-removal-of-directors.pdf
3.Familiarisation Programme for Directors
As a practice, all new Directors (including Independent Directors)
inducted to the Board go through a structured orientation programme. Presentations are
made by Senior Management giving an overview of the operations, to familiarise the new
Directors with the Company's business operations. The new Directors are given an
orientation on the products of the business, group structure and subsidiaries, Board
constitution and procedures, matters reserved for the Board, and the major risks and risk
management strategy of the Company. Visits to plant and mining locations are organised for
the new Directors to enable them to understand the business better.
Details of orientation given to the new and existing Independent
Directors in the areas of strategy/industry trends, operations & governance, and
safety, health and environment initiatives are available on the website of the Company at
https://www.tatasteel.com/media/12333/ familiarisation-program.pdf
4.Evaluation
The Board evaluated the eFectiveness of its functioning, of the
Committees and of individual Directors, pursuant to the provisions of the Act and the SEBI
Listing Regulations. The Board sought the feedback of Directors on various parameters
including:
•Degree of ful llment of key responsibilities towards stakeholders
(by way of monitoring corporate governance practices, participation in the long term
strategic planning, etc.);
•Structure, composition and role clarity of the Board and
Committees;
•Extent of co-ordination and cohesiveness between the Board and
its Committees;
•Effectiveness of the deliberations and process management;
•Board/Committee culture and dynamics; and
•Quality of relationship between Board Members and the Management.
The above criteria are broadly based on the Guidance Note on Board
Evaluation issued by the Securities and Exchange Board of India on January 5, 2017.
The Chairman of the Board had one-on-one meeting with the Independent
Directors (‘IDs') and the Chairman of NRC had one-on-one meeting with the
Executive and Non-Executive, Non-Independent Directors. These meetings were intended to
obtain Directors' inputs on eFectiveness of the Board/Committee processes.
In a separate meeting of the IDs, the performance of the
Non-Independent Directors, the Board as a whole and Chairman of the Company were evaluated
taking into account the views of Executive Directors and other Non-Executive Directors.
The NRC reviewed the performance of the individual Directors and the
Board as a whole.
In the Board meeting that followed the meeting of the Independent
Directors and the meeting of NRC, the performance of the Board, its Committees, and
individual Directors were discussed.
Outcome of Evaluation
The evaluation process endorsed the Board Members' confidence in
the ethical standards of the Company, the resilience of the Board and the Management in
navigating the Company during challenging times, cohesiveness amongst the Board Members,
constructive relationship between the Board and the Management and the openness of the
Management in sharing strategic information to enable Board Members to discharge their
responsibilities and duciary duties.
In the coming year, the Board intends to enhance focus on
sustainability and decarbonisation.
5.Remuneration Policy for the Board and Senior Management
Based on the recommendations of the NRC, the Board has approved the
Remuneration Policy for Directors, Key Managerial Personnel (‘KMPs') and all
other employees of the Company. As part of the policy, the Company strives to ensure that:
• the level and composition of remuneration is reasonable and su cient to attract,
retain and motivate Directors of the quality required to run the Company successfully;
• relationship between remuneration and performance is clear and meets appropriate
performance benchmarks; and • remuneration to Directors, KMPs and Senior Management
involves a balance between xed and incentive pay, re ecting short, medium and long-term
performance objectives appropriate to the working of the Company and its goals.
The salient features of the Policy are:
•It lays down the parameters based on which payment of
remuneration (including sitting fees and remuneration) should be made to Independent
Directors (IDs) and Non-Executive Directors (NEDs).
•It lays down the parameters based on which remuneration
(including fixed salary, benefits and perquisites, bonus/performance linked incentive,
commission, retirement benefits) should be given to whole-time directors, KMPs and rest of
the employees.
•It lays down the parameters for remuneration payable to Director
for services rendered in other capacity.
During the year under review, there has been no change to the Policy.
The Policy is available on the website of the Company at
https://www.tatasteel.com/media/6817/ remuneration-policy-of-directors-etc.pdf
6.Particulars of Employees
Disclosures pertaining to remuneration and other details as required
under Section 197(12) of the Act, read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 (‘Rules') are annexed to this
report (Annexure 4).
In terms of the provisions of Section 197(12) of the Act read with
Rules 5(2) and 5(3) of the Rules, a statement showing the names and other particulars of
employees drawing remuneration in excess of the limits set out in the said Rules forms
part of this report. Further, the report and the annual accounts are being sent to the
Members excluding the aforesaid statement. In terms of Section 136 of the Act, the said
statement will be open for inspection upon request by the Members. Any Member interested
in obtaining such particulars may write to the Company Secretary at cosec@tatasteel.com
7.Directors
The year under review saw the following changes to the Board of
Directors (‘Board').
Inductions to the Board
Based on the recommendations of the NRC and in terms of the provisions
of the Companies Act, 2013, the Board, on November 23, 2022, appointed Ms. Bharti Gupta
Ramola (DIN: 00356188) as an Additional Director of the Company efective November 25,
2022. Further, based on the recommendations of the NRC and subject to the approval of the
Members, the Board, in accordance with the provisions of Section 149 read with Schedule IV
to the Act and applicable SEBI Listing Regulations, appointed Ms. Ramola as an Independent
Director of the Company, not liable to retire by rotation, for a term of 5 years
commencing from November 25, 2022 through November 24, 2027. Ms. Ramola brings to the
Board her extensive knowledge and experience in areas of strategy,
nance, governance, regulatory a airs, environment and sustainability.
On January 31, 2023, the Shareholders of the Company, by way of a special resolution
passed through postal ballot, approved the appointment of Ms. Ramola as an Independent
Director of the Company for the abovementioned tenure.
Re-appointment a. Director retiring by rotation
In terms of the provisions of the Companies Act, 2013, Mr. N.
Chandrasekaran (DIN: 00121863), Director of the Company, retires at the ensuing AGM and
being eligible, seeks re-appointment. The necessary resolution for re-appointment of Mr.
Chandrasekaran forms part of the Notice convening the ensuing AGM scheduled to be held on
Wednesday, July 5, 2023. The proffle and particulars of experience, attributes and skills
that qualify Mr. Chandrasekaran for Board membership, are disclosed in the said Notice. b.
Whole-time Director (Designated as Executive Director & CFO)
Mr. Koushik Chatterjee (DIN: 00004989) was appointed as the Whole-time
Director designated as Executive Director and Group Chief Financial Officer of the Company
efective November 9, 2012 through November 8, 2017. He was then re-appointed as the
Whole-time Director of the Company designated as Executive Director and Chief Financial
Officer for a further period of five years effective November 9, 2017 through November 8,
2022 Based on the recommendation of the Nomination and Remuneration Committee, the Board
of Directors at its meeting held on October 31, 2022, re-appointed Mr. Chatterjee as the
Whole-time Director designated as Executive Director and Chief Financial Officer for a
further period of five years effective November 9, 2022 through November 8, 2027, subject
to approval of the shareholders.
On January 31, 2023, the Shareholders of the Company, by way of an
ordinary resolution passed through postal ballot, approved the appointment of Mr.
Chatterjee as Executive Director and Chief Financial Officer of the Company for the
abovementioned tenure.
Cessations
As per the terms of her appointment, Ms. Mallika Srinivasan (DIN:
00037022), completed her second term as an Independent Director on May 21, 2022 and
accordingly ceased to be an Independent Director and Member of the Board of Directors of
the Company. The Board of Directors place on record their deep appreciation for the
wisdom, knowledge and guidance provided by Ms. Srinivasan during her tenure.
Further, Mr. David W. Crane (DIN: 09354737), Independent Director,
stepped down as an Independent Director and Member of the Board efective September 5, 2022
since he was joining the United States Department of Energy as the Director of the Office
of Clean Energy Demonstration. The said position required him to step off from all private
sector positions. He also con rmed that there were no other material reasons for his
resignation. The Board of Directors place on record their deep appreciation for the
contributions and guidance provided by Mr. Crane during his tenure.
8.Independent Directors' Declaration
The Company has received the necessary declaration from each
Independent Director in accordance with Section 149(7) of the Act and Regulations 16(1)(b)
and 25(8) of the SEBI Listing Regulations, that he/she meets the criteria of independence
as laid out in Section 149(6) of the Act and Regulations 16(1)(b) of the SEBI Listing
Regulations. In the opinion of the Board, there has been no change in the circumstances
which may a ect their status as Independent Directors of the Company and the Board is
satis ed of the integrity, expertise, and experience (including proffciency in terms of
Section 150(1) of the Act and applicable rules thereunder) of all Independent Directors on
the Board. Further, in terms of Section 150 read with Rule 6 of the Companies (Appointment
and Qualification of Directors) Rules, 2014, as amended, Independent Directors of the
Company have included their names in the data bank of Independent Directors maintained
with the Indian Institute of Corporate A airs.
9.Key Managerial Personnel
In terms of Section 203 of the Act, the Key Managerial Personnel of the
Company are Mr. T. V. Narendran, Chief Executive Officer & Managing Director, Mr.
Koushik Chatterjee, Executive Director & Chief Financial Officer and Mr. Parvatheesam
Kanchinadham, Company Secretary & Chief Legal Officer (Corporate & Compliance).
During the year under review, there has been no change in the Key
Managerial Personnel.
10. Audit Committee
The Audit Committee was constituted in the year 1986. The Committee has
adopted a Charter for its functioning. The primary objective of the Committee is to
monitor and provide efective supervision of the Management's financial reporting
process, to ensure accurate and timely disclosures, with the highest levels of
transparency, integrity and quality of financial reporting.
The Committee comprises Mr. Deepak Kapoor (Chairman), Mr. O. P. Bhatt,
Ms. Farida Khambata, Ms. Bharti Gupta Ramola and Mr. Saurabh Agrawal. The Committee met
seven times during the year under review, the details of which are given in the Corporate
Governance Report. During the year under review, there were no instances when the
recommendations of the Audit Committee were not accepted by the Board.
11. Internal Control Systems
The Company's internal control systems commensurate with the
nature of its business, the size, and complexity of its operations and such internal
financial controls with reference to the Financial Statements are adequate. Details on the
Internal Financial Controls of the Company forms part of Management Discussion and
Analysis forming part of this Integrated Report and Annual Accounts 2022-23.
12. Risk Management
Tata Steel operates in a dynamic and uncertain business landscape.
Hence the Company has developed and deployed its Enterprise Risk Management ('ERM')
framework to create long-term value and become a risk-intelligent organization that drives
informed decision-making to proactively prepare for unforeseen scenarios. The framework,
principles and standards incorporate benchmark industry practices, international standards
(including Committee of Sponsoring Organization of the Treadway Commission - COSO &
ISO 31000), while also being customised to suit the business of the Company. The Risk
Management Committee (‘RMC') of the
Board provides an oversight and sets the context for implementation of
the ERM across the organisation.
The RMC ensures that appropriate methodology, processes, and systems
are in place to monitor and evaluate risks associated with the business of the Company. It
reviews the status of key risks, progress of
ERM implementation across locations and any exceptions as agged to it,
on a quarterly basis.
The risk appetite of the organisation is approved by the RMC and the
Board and is aligned to the Vision of the organisation. It is an important metric for
governing all business actions and strategic decisions. The Risk appetite is driven by the
following:
•Health and safety of our employees and the communities in which
we operate are our prime concern and our operating strategy is focused on the above
objective;
•All business decisions are aligned to the Tata Code of Conduct;
•Management actions are focused on continuous improvement;
•Environment and Climate Change impacts are assessed on a
continuous basis and business decisions support systems including capital allocation,
considers climate impact through the internal carbon pricing framework;
•The long-term strategy of the Company is focused on generating
profitable growth and sustainable cashflows that creates long term stakeholder value.
Risk Owners may accept risk exposure to their annual and long-term
business plans, which after implementation of mitigation strategies, is aligned to our
risk appetite. The Company's risk appetite has been cascaded across the organisation
including the Tata Steel Group Companies
(‘TSGCs') through focused communication during the Annual Business
Plan cycle.
In order to drive the ERM implementation, the Company has also
constituted a Management Committee called Apex Risk Committee (‘ARC') which
comprises of key executives of the Company including the Chief Executive Officer &
Managing Director, Executive Director & Chief Financial Officer and Vice President
– Corporate Finance, Treasury & Risk Management as its members. The ARC
periodically reviews the business plan of ERM, engages on the framework and processes and
deliberates on the risks that the Company faces.
Driven by an experienced and dedicated Central ERM team, the ERM
framework is deeply embedded across business units, levels, and functions. It has been a
key factor in managing highly impactful economic, supply chain and climate change risks,
as well as increasing resilience in the organisation.
The Central ERM team is a dedicated business vertical led by Vice
President - Corporate Finance, Treasury & Risk Management who acts as the Chief Risk
Officer ('CRO') of the Company. The ERM team continuously scans the external and internal
environment for developments which may throw up emerging risks for the organisation. The
risk ags and risk insights are shared with the Business Units (‘BU') as inputs
for identi cation and management of bottom-up risks, which are periodically reviewed as
per defined ERM Governance mechanism. The risks are escalated and aggregated for reporting
to ARC and RMC. This is complemented by a top-down process, which helps in identi cation
of strategic Enterprise level risks.
The Company follows co-ordinated risk assurance and the ERM process is
integrated with Corporate Audit, Corporate Strategy & Planning, Corporate Legal,
Ethics, Compliance and Security functions. The two-way communication with these functions
brings further rigor in driving the process across the organisation and the TSGCs. The ERM
process being data intensive, an in-house built IT system has been developed across the
organisation for real time management of risks through live dashboards. The IT system
supports risk analytics and helps in developing a uniform risk culture as the same ERM
framework is used while identifying, assessing, evaluating, monitoring & reviewing
risks.
The subsequent waves of COVID-19 pandemic, its associated fallouts,
Russia-Ukraine war, and the commodity upcycle led to an unprecedented business environment
over the last two years. The Company's Central Enterprise Risk Management team
facilitated the Business Units in identifying and assessing risks as the situation was
evolving. ‘Scenario-based risk assessment' is continuously undertaken across the
Company in view of dynamic operating environment and multiple externalities that continue
to challenge business.
The Company remained vigilant of the evolving macroeconomic,
geopolitical situation and global financial market sentiments to proactively manage risks
in FY2022-23. The focus on identi cation and tracking of ‘Early Warning
Indicators' and implementation of risk mitigation strategies proactively has been a
key enabler in managing the growing uncertainties and achieving business objectives.
The Company was conferred with the ‘RIMS Global ERM Award of
Distinction' in 2022. The award recognises the Company's outstanding ERM
achievements that have enabled the organisation to streamline processes and strengthen
collaboration across the enterprise in order to achieve strategic objectives.
The Company has also been recipient of IRMA awards ‘Masters of
Risk in Metals & Mining' at the 9th edition of The India Risk Management Awards
for seventh time in a row.
13. Vigil Mechanism
The Company has a Vigil Mechanism that provides a formal channel for
all its Directors, employees and business associates including customers to approach the
Chairman of the Audit Committee or Chief Ethics Counsellor and make protected disclosures
about any unethical behaviour, actual or suspected fraud or violation of the Tata Code of
Conduct (‘TCoC'). No person is denied access to the Chairman of the Audit
Committee. The Vigil Mechanism in the Company fosters a culture of trust and transparency
among all its stakeholders.
The Company's Vigil Mechanism has policies that include the
Whistle-Blower Policy for Directors & Employees, the Whistle-Blower Policy for
Business Associates, the Whistle-Blower Protection Policy for Business Associates
(vendors/customers), Gift and Hospitality Policy (‘G&H'), the Con
ict-of-Interest (‘COI') Policy for Employees, the
Anti-Bribery and Anti-Corruption (‘ABAC') Policy, and
Anti-Money Laundering (‘AML') Policy.
The Whistleblower Policies for Directors & Employees and Business
Associates encourages every Director, employee, and Business Associate to promptly report
any actual or possible violation of the TCoC or any event that he/ she becomes aware of
that could a ect the business or reputation of the Company. The Company ensures protection
for the whistleblowers and any attempts to intimidate the whistleblower is also treated as
a violation of the TCoC. The Whistleblower Policy includes reporting of incidents of leak
or suspected leak of Unpublished Price Sensitive Information (‘UPSI') as
required in terms of the provisions of the Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015 as amended.
The Whistle-Blower Protection Policy for Business Associates, including
vendors and customers, provides protection to Business Associates from any victimisation
or unfair trade practices by the Company. While the Whistle-blower policy encourages
whistle blowers to make protected disclosures in good faith, it also forbids raising
concerns with malicious intent.
The ABAC and AML policies primarily cover risk assessment, development
of processes & guidelines, third party due diligence through a third party, training
& awareness, and audit & reporting.
The Gift and Hospitality Policy aims to provide guidance to its
employees or persons who perform services for or on behalf of the Company on what is
appropriate and acceptable, and what is not acceptable, for offering, giving, and
accepting gifts and hospitality. The policy is in consonance with ABAC and AML policies.
The Company has also adopted a Con ict of Interest Policy that requires
employees to act in the best interest of the Company without any con icts and declare con
icts, if any (real, potential or perceived).
The Whistleblower Reward and Recognition Guidelines for employees has
been implemented to encourage employees to genuinely blow the whistle on any misconduct or
unethical activity taking place in the Company. The disclosures reported are addressed in
the manner and within the time frame prescribed in the Whistleblower Policy.
In addition to the abovementioned policies, the Company continues to
provide a Third-Party Whistleblowing helpline service which is available to our
stakeholders in the Company and TSGCs to raise their concerns or disclosures. This
helpline is provided through an external service provider. The Ethics helpline services
include toll-free number, web access, postal services, and e-mail facilities.
The Company, during the year under review, conducted a series of
communication and training programmes for internal and external stakeholders, with an aim
to create awareness amongst them about TCoC and other ethical practices of the Company. An
online training through e-learning modules on ABAC/AML and POSH was also conducted for the
stakeholders. Further, customised training and awareness sessions on ‘Third Party Due
Diligence' were conducted in relevant departments and divisions and business
associate meets were conducted with an aim to provide the business associates a platform
to discuss their issues and clarify their dilemmas if any on the abovementioned policies.
During the year under review, the Company received 303 Whistle Blower
Complaints (‘WBC') and 875 grievances & other concerns. Out of these, 158
WBC were investigated and closed after taking appropriate actions, 717 grievances &
other concerns were addressed as appropriate. A total of 145 WBC were open as of March 31,
2023 for which investigations are underway. The unaddressed 158 grievances & other
concerns are being looked into by the relevant agencies and will be closed as appropriate.
14. Disclosure as per the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013
Tata Steel has a zero tolerance towards sexual harassment at the
workplace. The Company has adopted a policy on prevention, prohibition, and redressal of
sexual harassment at workplace in line with the provisions of the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made
thereunder. The Company has complied with the provisions relating to the constitution of
the Internal Complaints Committee as per the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013.
During the year under review, the above mentioned policy and guidelines
were revised and amended to incorporate the changes associated with the hybrid workplace
model and explicit de nition of inappropriate behaviour under the parlance of sexual
harassment.
During the year under review, the Company received 31 complaints of
sexual harassment, of which 24 complaints have been resolved by taking appropriate actions
and 7 complaints are under investigation.
15. Subsidiaries, Joint Ventures and Associates
We have 149 subsidiaries and 44 associate companies (including 24 joint
ventures) as on March 31, 2023. During the year under review, the Board of Directors
reviewed the a airs of material subsidiaries. There has been no material change in the
nature of the business of the subsidiaries.
We have, in accordance with Section 129(3) of the Act prepared
Consolidated Financial Statements of the Company and all its subsidiaries, associates and
joint ventures which form part of the Integrated Report. Further, the report on the
performance and financial position of each subsidiary, associate and joint venture and
salient features of their Financial Statements in the prescribed Form AOC-1 is annexed to
this report (Annexure 5). In accordance with the provisions of Section 136 of the Act and
the amendments thereto, read with the SEBI Listing Regulations the audited Financial
Statements, including the consolidated financial statements and related information of the
Company and financial statements of the subsidiary companies are available on our website
www.tatasteel.com The names of companies that have become or ceased to be subsidiaries,
joint ventures and associates during the year under review are disclosed in an annexure to
this report (Annexure 6).
16. Related Party Transactions
In line with the requirements of the Act and the SEBI Listing
Regulations, the Company has formulated a Policy on Related Party Transactions. The Policy
can be accessed on the Company's website at https://www.tatasteel.com/
media/5891/policy-on-related-party-transactions.pdf During the year under review, all
related party transactions entered into by the Company, were approved by the Audit
Committee and were at arm's length and in the ordinary course of business. Prior
omnibus approval is obtained for related party transactions which are of repetitive nature
and entered in the ordinary course of business and on an arm's length basis. The
Company did not have any contracts or arrangements with related parties in terms of
Section 188(1) of the Companies Act, 2013.
Accordingly, the disclosure of related party transactions as required
under Section 134(3)(h) of the Act in Form AOC-2 is not applicable to the Company for
FY2022-23 and hence does not form part of this report.
Details of related party transactions entered into by the Company, in
terms of Ind AS-24 have been disclosed in the notes to the standalone/consolidated
financial statements forming part of this Integrated Report & Annual Accounts 2022-23.
17. Directors' Responsibility Statement
Based on the framework of internal financial controls and compliance
system established and maintained by the Company, work performed by the internal,
statutory, cost, and secretarial auditors and external agencies including audit of
internal financial controls over financial reporting by the statutory auditors and the
reviews performed by Management and the relevant Board Committees, including the Audit
Committee, the Board is of the opinion that the Company's internal financial controls
were adequate and efective during financial year 2022-23. Accordingly, pursuant to Section
134(5) of the Companies Act, 2013, the Board of Directors, to the best of its knowledge
and ability con rms that: a) in the preparation of the annual accounts, the applicable
accounting standards have been followed and that there were no material departures; b)
they have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view
of the state of a airs of the
Company at the end of the financial year and of the profit of the
Company for that period; c) they have taken proper and su cient care for the maintenance
of adequate accounting records in accordance with the provisions of the Companies Act,
2013 for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities; d) they have prepared the annual accounts on a going concern basis;
e) they have laid down internal financial controls to be followed by the Company and that
such internal financial controls are adequate and are operating efectively; f) they have
devised proper systems to ensure compliance with the provisions of all applicable laws and
that such systems were in place, are adequate and operating efectively.
18. Auditors
Statutory Auditors
Members of the Company at the AGM held on August 8, 2017, approved the
appointment of Price Waterhouse & Co. Chartered Accountants LLP (Registration No.-
304026E/E300009) (‘PW'), Chartered Accountants, as the statutory auditors of the
Company. Further, the Shareholders approved the re-appointment of PW for a second term of
five years commencing the conclusion of the 115th AGM held on June 28, 2022 until the
conclusion of 120th AGM of the Company to be held in the year 2027. The report of the
Statutory Auditor forms part of this Integrated Report and Annual Accounts 2022-23. The
said report does not contain any quali cation, reservation, adverse remark or disclaimer.
Cost Auditors
In terms of Section 148 of the Act, the Company is required to maintain
cost records and have the audit of its cost records conducted by a Cost Accountant. Cost
records are prepared and maintained by the Company as required under Section 148(1) of the
Act.
The Board of Directors of the Company has, on the recommendation of the
Audit Committee, approved the appointment of M/s Shome & Banerjee as the cost auditors
of the Company (Firm Registration No. 000001) for the year ending March 31, 2024. M/s
Shome & Banerjee have vast experience in the eld of cost audit and have been
conducting the audit of the cost records of the Company for the past several years.
In accordance with the provisions of Section 148(3) of the Act read
with Rule 14 of the Companies (Audit and Auditors) Rules, 2014, as amended, the
remuneration of 30 lakh plus applicable taxes and reimbursement of out-of-pocket expenses
payable to the Cost Auditors for conducting cost audit of the Company for FY2023-24 as
recommended by the Audit Committee and approved by the Board has to be rati ed by the
Members of the Company. The same is placed for rati cation of Members and forms part of
the Notice of the AGM.
Secretarial Auditors
Section 204 of the Act, inter alia, requires every listed company to
annex to its Board's report, a Secretarial Audit Report, given in the prescribed
form, by a Company Secretary in practice.
The Board had appointed Parikh & Associates, (Registration No.
P1988MH009800), Practicing Company Secretaries, as the Secretarial Auditor to conduct
Secretarial Audit of the Company for the FY2022-23 and their Report is annexed to this
report (Annexure 7). There are no quali cations, observations, adverse remark or
disclaimer in the said Report.
Reporting of Fraud
During the year under review, the Statutory Auditors, Cost Auditors and
Secretarial Auditors have not reported any instances of frauds committed in the Company by
its officers or employees to the Audit Committee under Section 143(12) of the Act, details
of which need to be mentioned in this Report.
19. Annual Return
The Annual Return for financial year 2022-23 as per provisions of the
Act and Rules thereto, is available on the Company's website at
https://www.tatasteel.com/ media/18332/mgt7.pdf
20. Significant and Material Orders passed by the Regulators or Courts
There has been no significant and material order passed by the
regulators or courts or tribunals impacting the going concern status and the
Company's future operations. However, Members' attention is drawn to the
statement on contingent liabilities, commitments in the notes forming part of the
Financial Statements.
21. Particulars of Loans, Guarantees or Investments
Particulars of loans, guarantees given and investments made during the
year under review in accordance with Section 186 of the Act is annexed to this report
(Annexure 8).
22. Energy Conservation, Technology Absorption and Foreign Exchange
Earnings and Outgo
Details of the energy conservation, technology absorption and foreign
exchange earnings and outgo are annexed to this report (Annexure 9).
23. Deposits
During the year under review, the Company has not accepted any deposits
from public in terms of the Act. Further, no amount on account of principal or interest on
deposits from public was outstanding as on the date of the balance sheet.
24. Secretarial Standards
The Company has in place proper systems to ensure compliance with the
provisions of the applicable secretarial standards issued by The Institute of the Company
Secretaries of India and such systems are adequate and operating efectively.
25. Other disclosures
(a) There has been no change in the nature of business of the Company
as on the date of this Report. (b) There were no material changes and commitments
affecting the financial position of the Company between the end of the financial year and
the date of this Report.
(c) There was no application made or proceeding pending against the
Company under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year under
review.
G. ACKNOWLEDGEMENTS
We thank our customers, vendors, dealers, investors, business
associates and bankers for their continued support during the year. We place on record our
appreciation of the contribution made by employees at all levels. Our resilience to meet
challenges was made possible by their hard work, solidarity, co-operation and support.
We thank the Government of India, the State Governments and the
Governments in the countries where we have operations and other regulatory authorities and
government agencies for their support and look forward to their continued support in the
future.
|
On behalf of the Board of Directors |
|
sd/- |
|
N. CHANDRASEKARAN |
| Mumbai |
Chairman |
| May 2, 2023 |
DIN: 00121863 |
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