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 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.
The Company 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. Apart from this, it has presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products.
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
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 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.
The Company 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. Apart from this, it has presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products.
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
Tata Steel Ltd
Directors Reports
To the Members,
Your Directors take pleasure in presenting the 7th
Integrated Report (prepared as per the framework set forth by the International Integrated
Reporting Council) and the 115th 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, 2022.
A. Financial Results
(Rs. crore)
| Particulars |
Tata Steel (Standalone) |
Tata Steel (Consolidated) |
|
2021-22 |
2020-21 |
2021-22 |
2020-21 |
| Revenue from operations |
1,29,021.35 |
84,132.92 |
2,43,959.17 |
1,56,477.40 |
| Total expenditure before finance cost, depreciation (net of
expenditure transferred to capital) |
77,891.50 |
57,009.21 |
1,80,469.22 |
1,25,973.14 |
| Operating Profit |
51,129.85 |
27,123.71 |
63,489.95 |
30,504.26 |
| Add: Other income |
1,452.02 |
755.11 |
784.89 |
895.60 |
| Profit before finance cost, depreciation, exceptional items
and tax |
52,581.87 |
27,878.82 |
64,274.84 |
31,399.86 |
| Less: Finance costs |
2,792.08 |
4,541.02 |
5,462.20 |
7,606.71 |
| Profit before depreciation, exceptional items and tax |
49,789.79 |
23,337.80 |
58,812.64 |
23,793.15 |
| Less: Depreciation and amortisation expenses |
5,463.69 |
5,469.26 |
9,100.87 |
9,233.64 |
| Profit / (Loss) before share of profit/(loss) of joint
ventures & associates, exceptional items & tax |
44,326.10 |
17,868.54 |
49,711.77 |
14,559.51 |
| Share of profit / (loss) of Joint Ventures & Associates |
- |
- |
649.16 |
327.34 |
| Profit / (Loss) before exceptional items & tax |
44,326.10 |
17,868.54 |
50,360.93 |
14,886.85 |
| Add/(Less): Exceptional Items |
(235.45) |
741.30 |
(134.06) |
(1,043.16) |
| Profit before tax |
44,090.65 |
18,609.84 |
50,226.87 |
13,843.69 |
| Less: Tax Expense |
11,079.47 |
1,531.87 |
8,477.55 |
5,653.90 |
| (A) Profit/(Loss) after tax |
33,011.18 |
17,077.97 |
41,749.32 |
8,189.79 |
| Total Profit / (Loss) for the period attributable to: |
|
|
|
|
| Owners of the Company |
- |
- |
40,153.93 |
7,490.22 |
| Non controlling interests |
- |
- |
1,595.39 |
699.57 |
| (B) Total other comprehensive income |
694.90 |
411.41 |
1,305.42 |
(7,211.01) |
| (C) Total comprehensive income for the period [ A + B ] |
33,706.08 |
17,489.38 |
43,054.74 |
978.78 |
| Retained Earnings: Balance brought forward from the previous
year |
46,480.00 |
30,803.97 |
16,476.70 |
18,127.82 |
| Add: Profit for the period |
33,011.18 |
17,077.97 |
40,153.93 |
7,490.22 |
| Less: Distribution on Hybrid perpetual securities |
1.46 |
242.34 |
1.46 |
242.34 |
| Add: Tax effect on distribution of Hybrid perpetual
securities |
0.37 |
60.99 |
0.37 |
60.99 |
| Add: Other Comprehensive Income recognised in Retained
Earnings |
5.67 |
64.01 |
366.39 |
(7,627.26) |
| Add/(Less): Change in Capital Structure and other movements
within equity |
9.99 |
(138.68) |
1656.02 |
(187.98) |
| Balance |
79,505.75 |
47,625.92 |
58,651.95 |
17,621.45 |
| Which the Directors have apportioned as under to:- |
|
|
|
|
| (i) Dividend on Ordinary Shares |
3,007.08 |
1,145.92 |
3,004.16 |
1,144.75 |
| Total Appropriations |
3,007.08 |
1,145.92 |
3,004.16 |
1,144.75 |
| Retained Earnings: Balance to be carried forward |
76,498.67 |
46,480.00 |
55,647.79 |
16,476.70 |
Notes:
i. The Board of Directors of the Company, at its meeting held on April
25, 2019, had approved the Composite Scheme of Amalgamation of Bamnipal Steel Limited and
Tata Steel BSL Limited (formerly known as Bhushan Steel Limited) into and with the Company
('Scheme of Amalgamation'). The Hon'ble National Company Law Tribunal, Mumbai Bench had
pronounced the Order on October 29, 2021, approving the aforesaid Scheme of Amalgamation.
The Company, in its standalone financial statements, had accounted for
the amalgamation using the pooling of interest method retrospectively for all periods
presented as prescribed in Ind AS 103 - "Business Combinations". The figures for
the previous periods in the standalone financial statements have been accordingly restated
from April 1, 2020. The consolidated financial results include the impact of the Scheme of
Amalgamation on accounting adjustments in accordance with the applicable Ind AS
provisions. Consequent to the amalgamation, Bamnipal Steel (including Tata Steel BSL) is
no longer presented as a separate segment and its steel business is included in Tata Steel
India segment with previous periods restated accordingly.
ii. Consequent to the re-classification of South East Asian Operations
from "Held for Sale" during the quarter ended March 31, 2021, results from
"Continuing Operations" for the previous periods wherever applicable have been
re-stated to include these businesses which were earlier presented as "Discontinued
Operations". During the year under review, the Company sold its stake in its
Singapore operations of NatSteel Holdings Pte. Ltd. ('NSH'). The wires business of
NatSteel in Thailand (Siam Industrial Wires) has been retained by Tata Steel as part of
the downstream wires portfolio.
iii. Figures for the previous periods have been regrouped and
reclassified to conform to the classification of the current period, where necessary.
iv. The exceptional items (Consolidated Accounts) in Financial Year
2021-22 primarily represents:
a. Restructuring and other provisions which includes charge on
Employees Family Protection Scheme for COVID-19 amounting to Rs.215 crore at Tata Steel
Limited (Standalone), Tata Steel Downstream Products Limited and at Tata Steel Utilities
and Infrastructure Services Limited.
b. Impairment charges (net of reversal) Rs.172 crore in respect of
property, plant and equipment (including capital work-in- progress), right-of-use assets
and other assets primarily at Tata Steel Europe ('TSE') and Tata Steel Thailand.
c. Provision for Employee Separation Scheme ('ESS') amounting to Rs.331
crore includes provisions made primarily under Sunehere Bhavishya Ki Yojana ('SBKY')
scheme amounting to Rs.208 crore and Second Innings Scheme amounting to Rs.123 crore, at
Tata Steel Limited (Standalone).
d. Impairment of Inter Corporate Deposits given to an Associate of the
Company amounting to Rs.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 Rs.27
crore at Tata Steel Long Products Limited.
f. Redundancy provisions at TSE amounting to Rs.14 crore.
g. Impairment on outstanding deferred consideration at TSE Rs.81 crore.
Partly offset by,
a. Profit on sale of subsidiaries and non-current investments in
NatSteel Holdings Pte. Ltd. amounting to Rs.725 crore.
b. Reversal of fair valuation loss previously taken on investment in
debentures of a joint venture of the Company amounting to Rs.50 crore at Tata Steel
Limited (Standalone).
c. Gain on sale of land amounting to Rs.31 crore at Tata Metaliks
Limited.
The exceptional items (Consolidated Accounts) in Financial Year 2020-21
primarily include:
a. Impairment charges (net of reversal) of Rs.1,954 crore in respect of
property, plant and equipment (including capital work-in- progress), right-of-use assets
and other assets primarily at Tata Steel Europe ('TSE'), mining operations carried out in
Canada, South-East Asian Operations, offset by reversal at Tata Steel Special Economic
Zone Limited.
b. Loss from liquidation of subsidiaries amounting to Rs.10 crore at
TSE.
c. Net Provision for Employee Separation Scheme ('ESS') amounting to
Rs.444 crore includes provisions primarily made under Special Scheme at Company's Jharia
Collieries amounting to Rs.467 crore, offset by credit for ESS under Sunehere Bhavishya Ki
Yojana ('SBKY') scheme amounting to Rs.23 crore at Tata Steel Limited (Standalone).
d. Fair valuation loss on investment in debentures of a joint venture
company amounting to Rs.50 crore at Tata Steel Limited (Standalone).
Partly offset by,
a. Restructuring and write-back of provisions which primarily includes
write-back of provisions at TSE Rs.88 crore.
b. Reversal of fair value loss amounting to Rs.1,230 crore on
reclassification of South-East Asian businesses, earlier recognised as "held for
sale".
c. Reversal of impairment of investments provided earlier in one of the
Associate company of Tata Steel amounting to Rs.70 crore.
d. Profit on sale of subsidiaries includes profit of Rs.26 crore on
realisation of deferred consideration at TSE.
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-final.pdf
2. Dividend
For the Financial Year 2021-22, the Board has recommended a dividend of
Rs.51/- per fully paid-up Ordinary (equity) Share (previous year: Rs.25/- per fully
paid-up Ordinary (equity) Share) and in respect of the outstanding partly paid-up Ordinary
(equity) Shares of the Company on which call money remains unpaid as on the date of book
closure for the dividend payment, the dividend will be paid in proportion to the amount
paid-up on such shares i.e. Rs.12.75 per partly paid-up Ordinary (equity) Share of Rs.10/-
each (paid-up Rs.2.504 per share) [previous year: Rs.6.25 per partly paid-up Ordinary
(equity) Share].
The Board has recommended dividend based on the parameters laid down in
the Dividend Distribution Policy and dividend will be paid out of the profits for the
year.
The dividend on Ordinary Shares (fully paid-up as well as partly
paid-up) is subject to the approval of the Shareholders at the Annual General Meeting
('AGM') scheduled to be held on Tuesday, June 28, 2022 and will be paid on and from
Saturday, July 2, 2022.
Based on the Ordinary Shares (fully paid-up as well as partly paid-up)
as on the date of this report, the dividend, if approved would result in a cash outflow of
~Rs.6,233.11 crore. The dividend on Ordinary Shares (fully paid-up as well as partly
paid-up) is 510% of the paid-up value of each share. The total dividend pay-out works out
to 19% (previous year: 18%) 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 17, 2022 to Tuesday, June 28, 2022 (both days inclusive)
for the purpose of payment of the dividend and AGM for the financial year ended March 31,
2022.
3. Transfer to Reserves
The Board of Directors has decided to retain the entire amount of
profit for FY 2021-22 appearing in the statement of profit and loss.
4. Capex and Liquidity
During the year under review, the Company, on a consolidated basis
spent Rs.10,522 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 Rs.37,470
crore as on March 31, 2022, comprising Rs.24,513 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 is annexed to this Report (Annexure 1).
B. Integrated 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 developed by
the International Integrated Reporting Council (now known as Value Reporting Foundation).
Our 7th Integrated Report highlights the measures taken by
the Company that contributes to long-term sustainability and value creation, while
embracing different skills, continuous innovation, sustainable growth and a better quality
of life.
C. Operations and Performance
1. Impact of COVID-19 on the economy and Company's initiatives in
addressing the challenges of the pandemic
The COVID-19 pandemic has led to the unprecedented health crisis and
has disrupted economic activities and global trade while weighing on consumer sentiments.
During the year under review, the nation experienced high severity and mortality of
citizens brought by the second wave of the ongoing COVID-19 pandemic. With intermittent
nationwide lockdowns and disruption in regular economic activities, there was price
volatility of raw materials and sluggish market demand during first half of the year under
review. However, the Company dealt with the pandemic by continuing to focus on operational
excellence, marketing strategies, and keeping its employees and community at the core of
it.
The health and safety of employees and the communities in which the
Company operates continue to be the foremost priority of the Company. To mitigate the
risks and challenges faced by the Company during the pandemic, the Company enhanced safety
and hygiene norms at offices, implemented work from home, staggered shift timings for
safety of employees and leveraged digital platforms for its day-to-day operations. The
Company, in collaboration with state governments and hospitals, contributed immensely
towards maintaining dedicated covid-care units, providing of liquid oxygen &
maintaining oxygen processing plants and undertaking vaccination drives. Further, the
Company's three pronged communication strategy - awareness, engagement and reinforcement
helped spreading awareness amongst various communities.
During the challenging times, the Company maintained its liquidity
position by minimizing cash outflows and maintaining a judicious mix of funding
instruments to fulfil its operational requirements.
Further details on various initiatives taken by Tata Steel in
addressing the challenges posed by COVID-19 pandemic forms part of the Management
Discussion and Analysis forming part of this Report.
2. Tata Steel (Consolidated)
During the year under review, the Tata Steel Group ('TSG') recorded
total consolidated crude steel production of 31.03 MnT (previous year: 28.54 MnT), an
increase by 9% primarily due to better steel demand. TSG recorded total consolidated
deliveries of 29.52 MnT (previous year: 28.50 MnT), an increase by 4%, due to higher
exports and higher domestic demand primarily during second half of the year under review.
The turnover of TSG was Rs.2,43,959 crore during the financial year
2021-22 (previous year: Rs.1,56,477 crore), an increase by 56% primarily contributed by
higher steel realisations across geographies along with increase in deliveries. Further,
the EBITDA of TSG was Rs.63,830 crore [(>2x) of previous year] during the financial
year 2021-22, significantly higher as compared to Rs.30,892 crore in the previous year,
owing to higher revenues, partly offset by increase in input cost.
During the year under review, TSG reported a consolidated profit after
tax of Rs.41,749 crore which is almost five times higher than the profit after tax of
Rs.8,190 crore in the previous year. The increase was mainly due to improvement in EBITDA,
lower net finance charges due to pre-payments and lower exceptional charge, partly offset
by higher tax charge in India due to higher profits.
3. Tata Steel (India Operations)
During the year under review, total deliveries at Tata Steel Limited
(Standalone) were at 17.62 MnT (previous year: 16.66 MnT). Turnover was Rs.1,29,021 crore
(previous year: Rs.84,133 crore), an increase of ~53% than that of the previous year.
EBITDA from Tata Steel Limited (Standalone) was Rs.51,456 crore (previous year: Rs.27,340
crore), 88% higher than that of the previous year. During the year under review, the crude
steel production in Tata Steel Limited increased by 13% to 18.38 MnT as the previous year
was impacted due to COVID-19 pandemic.
Total deliveries of Tata Steel from its Indian operations (including
Tata Steel Long Products Limited) stood at 18.27 MnT which is higher than the previous
year by 6%. The turnover was Rs.1,35,823 crore, an increase by ~53% than previous year and
EBITDA (excluding inter-company eliminations and adjustments) was Rs.52,745 crore, 85%
increase than previous year, both owing to sharp increase in steel realisations and higher
steel deliveries which was partly offset by higher operating cost due to increase in
imported coal prices and higher iron ore prices.
4. Tata Steel (Europe Operations)
During the year under review, liquid steel production from Europe
operations was 10.11 MnT (previous year: 9.55 MnT), an increase of 6%. Deliveries from
Europe operations increased by ~2% to 9.02 MnT primarily due to increased demand. Turnover
from operations was Rs.90,023 crore (previous year: Rs.56,051 crore), significantly higher
due to increase in average revenue per tonne due to continued increase in selling price
and higher deliveries in view of market demand.
Despite the headwinds from COVID-19, there was significant improvement
in EBITDA which stood at Rs.12,164 crore primarily on account of higher prices, which was
partly offset by the increase in raw material prices, increase in maintenance spend,
energy prices and employee cost.
D. Key Developments
1. Amalgamation
Amalgamation of Bamnipal Steel Limited and Tata Steel BSL Limited into
and with Tata Steel Limited
The Board of Directors of the Company, at its meeting held on April 25,
2019, approved the amalgamation of Bamnipal Steel Limited and Tata Steel BSL Limited
('TSBSL'), into and with the Company by way of a composite scheme of amalgamation
('Scheme'). The Scheme was approved by the shareholders of the Company by requisite
majority at their meeting held on March 26, 2021. On receipt of the approval of the
shareholders, the Company filed the 'Company Scheme Petition' with the Hon'ble National
Company Law Tribunal ('NCLT'), Mumbai Bench with the prayer to sanction the Scheme. After
several hearings, on October 29, 2021, the NCLT pronounced the Order sanctioning the
above-mentioned Scheme (the Appointed Date being April 1, 2019). On November 11, 2021, the
parties to the Scheme made necessary filings with the statutory authorities and
accordingly, the Scheme became effective from November 11, 2021.
As per the terms of the Scheme, the Board of Directors of the Company
at its meeting held on November 11, 2021, approved the issuance of one fully paid-up
Equity Share of Tata Steel Limited of face value Rs.10/- each for every fifteen Equity
Shares of TSBSL of face value Rs.2/- each upto 1,99,34,052 equity shares, to eligible
shareholders of TSBSL as on the Record Date i.e. November 16, 2021. Further, cross-holding
of equity shares and/or preference shares amongst the parties to the Scheme, inter-se,
stood cancelled. On November 23, 2021, the Board of Directors of the Company approved the
allotment of 1,82,23,805 fully paid-up Equity Shares to the eligible shareholders of
TSBSL. As on date, Bamnipal Steel Limited and TSBSL stands amalgamated into and with Tata
Steel Limited.
2. Acquisitions, Investments and Portfolio Restructuring Acquisition of
Neelachal Ispat Nigam Limited
On January 31,2022, Tata Steel Long Products Limited ('TSLP'), a listed
subsidiary of the Company, was announced as the winner of the bidding process to acquire
93.71% stake in the 1 MnTPA Neelachal Ispat Nigam Limited ('NINL') in accordance with the
process run by Department of Investment and Public Asset Management, Government of India.
NINL is a strategic acquisition for Tata Steel due to its close proximity to Kalinganagar
Steel Plant, its steel making capacity, its 2,500 acres of land for future growth and iron
ore reserves of around 100 MnT. This will help Tata Steel to boost its long products
business.
On March 10, 2022, the Company and TSLP executed a Share Sale and
Purchase Agreement with NINL and its principle shareholders for acquisition of the said
stake for an aggregate consideration of Rs.12,100 crore, which reflects the enterprise
value (including all recorded liabilities) as part of the said acquisition.
Investment in Tata Steel Long Products Limited
On March 17, 2022, Tata Steel acquired 10,00,00,000 - 0.01%
Non-Convertible Redeemable Preference Shares of face value Rs.100/- each ('NCRPS') of Tata
Steel Long Products Limited ('TSLP'), aggregating to Rs.1,000 crore. On March 30, 2022,
Tata Steel further acquired 117,00,00,000 NCRPS of TSLP, aggregating to Rs.11,700 crore.
Through these fundings, Tata Steel assisted TSLP in funding growth plans including
acquisition of NINL.
The Company's equity shareholding in TSLP remains at 74.91%.
Acquisition of Rohit Ferro-Tech Limited
The Company was exploring opportunities to meet its production target
for ferro alloys and considering the strategic attractiveness, competitive intensity and
expected synergy benefits, identified Rohit Ferro-Tech Limited ('RFT') as a target company
to be acquired through Tata Steel Mining Limited ('TSML'), wholly-owned subsidiary of Tata
Steel, under the Corporate Insolvency Resolution Process ('CIRP') of the Insolvency and
Bankruptcy Code, 2016 ('Code').
On June 5, 2021, the Committee of Creditors, in terms of the CIRP of
the Code, declared TSML as the successful resolution applicant for the acquisition of RFT,
subject to necessary regulatory approvals including approval from the NCLT, Kolkata Bench.
On April 7, 2022, the NCLT pronounced the Order approving the Resolution Plan submitted by
TSML for acquisition of RFT. As per the Resolution Plan, TSML acquired 90% equity stake in
RFT for ~Rs.617 crore.
On April 11, 2022, in terms of the Resolution Plan, the Company
(through TSML) completed the acquisition of 90% stake in RFT and the remaining 10% stake
was acquired by the assenting financial creditors of RFT towards conversion of a portion
of their loans. For the purpose of this acquisition, the Company, as one of the funding
modes, infused Rs.625 crore into TSML by acquiring 32,63,70,757 equity shares of TSML of
face value Rs.10/- each for a premium of Rs.9.15 per share.
Acquisition of Preference Shares of Angul Sukinda Railway Limited
On December 15, 2021, the Company executed a long-term agreement with
Angul Sukinda Railway Limited ('ASRL'), for the construction, operation and maintenance of
an alternate railway line ('Additional Rail Line'). The agreement has been entered into
for a period of 20 years to meet the logistic requirements of the Company's Kalinganagar
Steel Plant. The entire expenditure for construction of the Additional Rail Line of Rs.400
crore will be funded by the Company in a phased manner by subscribing to 40,00,00,000
Non-Convertible, Non-Cumulative, Redeemable Preference Shares of face value Rs.10/- each
of ASRL.
Increase in stake in Medica TS Hospital Private Limited
On January 7, 2022, the Company's equity stake in Medica TS Hospital
Private Limited ('MTSHPL'), a joint venture of Tata Steel, increased from 26% to 51% due
to conversion of 5,102 Optionally Convertible Debentures ('OCDs') of Rs.1,000 each into
5,10,200 Equity Shares of Rs.10/- each of MTSHPL. Further, 4,92,298 OCDs of Rs.1,000 each
were also converted into 0.1% of Optionally Convertible Redeemable Preference Shares of
Rs.10/- each of MTSHPL. Accordingly, during the year under review, MTSHPL became a
subsidiary of the Company from being a joint venture of the Company.
Acquisition of stake in Ceramat Private Limited
The Company has identified Advanced Ceramics as one of the new
materials for strategic growth. The Company was exploring opportunities to set up a
world-class facility to produce medical materials and identified Ceramat Private Limited
as a special purpose vehicle for this purpose.
On February 28, 2022, Tata Steel Limited through Tata Steel Advanced
Materials Limited, wholly owned subsidiary of the Company, executed a Share Purchase cum
Shareholders' Agreement for acquisition of 90% equity stake in Ceramat Private Limited.
The said acquisition was completed on March 16, 2022 for a cash consideration of
Rs.90,000.
Acquisition of itemized assets from Stork Ferro and Mineral Industries
Private Limited
On March 30, 2022, the Company executed an Asset Transfer Agreement
with Stork Ferro and Mineral Industries Private Limited for acquisition of itemized assets
to produce ferro alloys for a cash consideration of Rs.155 crore (excluding applicable
taxes).
Acquisition of entire stake held by Steel Authority of India Limited in
S & T Mining Company Limited
On April 5, 2022, the Company had executed a Share Purchase Agreement
with the Steel Authority of India Limited ('SAIL') for acquisition of the entire equity
stake of SAIL (50%) held in S&T Mining Company Limited ('S&T Mining'). On April
11, 2022, the said acquisition was completed and S&T Mining ceased to be joint venture
of the Company and became its wholly-owned subsidiary.
Portfolio restructuring of Tata Steel Group Companies
The Company had previously announced that it is embarking on a
comprehensive strategic organization level restructuring and consolidation of its
diversified business portfolio of its group companies ('Tata Steel Group Companies or
TSGCs').
The strategic objective is to group the TSGCs under 4 distinct clusters
viz. (a) Long Products (b) Downstream (c) Mining and (d) Utilities and Infrastructure
Services, each controlled through a subsidiary company of the Company, which will be
responsible for nurturing and scaling the business of its respective cluster to become a
leading strategic player in the industry.
In line with the above objective, the Company during the year under
review, transferred its entire shareholdings in (a) Tata Steel Special Economic Zone
Limited, (b) Adityapur Toll Bridge Company Limited (c) Himalaya Steel Mill Services
Private Limited (d) Tata Pigments Ltd. (e) Jamipol Limited (f) 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).
3. Divestments
Sale of shares in NatSteel Holdings Pte. Ltd.
On September 30, 2021, T S Global Holdings Pte. Ltd. ('TSGH'), an
indirect wholly owned subsidiary of Tata Steel Limited, set up in South-East Asia,
executed definitive agreements with Toptip Holding Pte Ltd. to divest its entire stake
held in NatSteel Holdings Pte. Ltd., for an equity value of US$ 172 million (Rs.1,275
crore). However, the wires business of NatSteel in Thailand (Siam Industrial Wires) will
continue to be in operations under TSGH as part of downstream wires portfolio.
4. Financing and Debt Redemption
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 final call of Rs.461/- (comprising Rs.7.496 towards face value and
Rs.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 Rs.10/- each,
issued by the Company, on a Rights basis, pursuant to the Letter of Offer dated January
22, 2018.
Pursuant to the First and Final Call, the Stakeholders' Relationship
Committee ('SRC'), duly authorised by the Board, on March 24, 2021 approved the conversion
of 7,02,49,241 partly paid-up equity shares of face value Rs.10/- each into fully paid-up
equity shares of face value Rs.10/- each, against which the first and final call money of
Rs.461/- (comprising Rs.7.496 towards face value and Rs.453.504 towards securities
premium) per share was received.
During the year under review, the SRC, approved the conversion of
71,64,259 partly paid-up equity shares of face value Rs.10/- each into fully paid-up
equity shares of face value Rs.10/- each, against which the First and Final Call money of
Rs.461/- per share was received. The converted shares rank pari passu with the
existing fully paid-up equity shares of the Company.
As on March 31, 2022, the Company has 2,23,288 partly paid-up equity
shares on which the first and final call money remains unpaid.
Debenture Redemptions
On May 11, 2021 the Company exercised its Call Option to redeem 11.50%
Perpetual Hybrid Securities of the Company aggregating to Rs.775 crore, as per their terms
of issue. On April 22, 2022, the Company redeemed its 2% Non-Convertible Debentures
aggregating to Rs.1,500 crore as on the due date.
Credit rating
During the year under review, international rating agency S&P
Global Ratings upgraded Tata Steel's Corporate Family Rating by four notches to 'BBB-'
Outlook: Stable from 'B+' Outlook: Stable. With the upgrade, Tata Steel has become an
investment- grade rated entity in the international markets. Further, Moody's also
upgraded the rating by one notch to 'Ba1' Outlook: Stable from 'Ba2' Outlook: Stable due
to its better-than-anticipated operational performance and reduction in gross debt during
FY 2021-22.
Domestic rating agencies upgraded Tata Steel's Ratings by one notch:
India Ratings upgraded Tata Steel's long-term credit rating by one notch to 'AA+' Outlook:
Stable from 'AA' Outlook: Stable. CARE Ratings upgraded Tata Steel's long-term credit
rating by one notch to 'AA+' Outlook: Stable from 'AA' Outlook: Negative'. Brickwork
Ratings also upgraded Tata Steel's long-term credit rating to 'AA+' Outlook: Stable from
'AA' Outlook: Stable.
Sub-division of Ordinary Shares of the Company
On May 3, 2022, the Board of Directors of the Company, in order to
enhance the liquidity in the capital market, to widen shareholder base and to make the
shares more affordable to small investors, considered and approved the proposal for
sub-division of 1 (one) equity share of the Company having face value of Rs.10/- each into
10 (Ten) equity shares of the Company having face value of Rs.1/- each, subject to the
approval of the Shareholders of the Company and other necessary approvals.
Further, there will be consequential amendments in the Capital Clause
of the Memorandum of Association of the Company and Articles of Association of the
Company, subject to approval of the Shareholders of the Company at the ensuing AGM
scheduled to be held on June 28, 2022.
Details on the proposal forms part of the AGM Notice forming part of
this Integrated Report & Annual Accounts 2021-22.
5. Operations
Commissioning of first Steel Recyclying Plant in Rohtak, Haryana
On August 18, 2021, the Company commissioned its new 0.5 MnTPA Steel
Recycling Plant at Rohtak, Haryana in collaboration with Aarti Green Tech Limited on
'Build-Own-Operate' basis. It is the first such facility in the country and is equipped
with modern and mechanized equipment such as Shredder, Baler, Material Handler amongst
others. The scrap would be procured from various market segments such as end-of-life
vehicles, obsolete households, construction & demolition, industrial etc., and
processed through mechanised equipment and the high-quality processed scrap would be
supplied for downstream steel making. Steel produced through this recycled route will lead
to lower carbon emissions, resource consumption and energy utilisation.
E. Sustainability
Tata Steel's philosophy of steel production is deep rooted on the
principles of zero harm, resource efficiency, 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. Aspirations of taking the Company's
carbon emissions to <1.8 tCO2/tcs, mitigating dependence on fresh water by
lowering specific freshwater consumption to <1.5 m3/tcs, no harm to
biodiversity and inclusion of critical supply chain partners for Company's ESG risk
assessment and mitigation are significant facets of this strategy. In Europe, the Company
has embraced a target to achieve carbon neutrality of its steel making operations by 2050.
The Company takes it as its inherent responsibility to protect the
rights of its stakeholders. During the year under review, the Company has adopted the
Business and Human Rights Policy and institutionalised a governance structure towards its
deployment. 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 in February 2020, 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 sustainable
supply chain.
The Company continues to be committed to serve its customers through a
portfolio of eco-friendly products and disclosure of the environmental impact of its
products by using Life Cycle Assessment ('LCA') methodology. To accelerate its efforts in
becoming a leader in product sustainability, Tata Steel strives to use LCA tool
effectively 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. The Company
has completed the LCA study for products manufactured at its plants at Meramandali
(Odisha), CRM Bara in Jamshedpur (Jharkhand) and the plant site of its subsidiary, Tata
Steel Long Products Limited situated at Gamharia (Jharkhand). The Company has also carried
out LCA study for structural tubes and hollow section products manufactured at Tata Steel
Tubes division, Jamshedpur (Jharkhand) and other production units across India. The
Company has also carried out LCA study for its Fibre Reinforced Polymer ('FRP') product to
understand its environmental impact. During the year under review, Tata Tiscon became
India's first GreenPro certified TMT rebar brand. 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 react 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 certified 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
Company's efforts 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, 2022, the Company
has implemented BMPs across 13 locations in India.
1. Environment
Being a responsible corporate citizen, Tata Steel continues to strive
for environmental sustainability across operations. Towards 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 all its
operating locations, globally. The Company endeavours to practice responsible advocacy on
regulatory issues and actively participates in various national and international
organisations on diverse issues.
Guided by our Code of Conduct and internal corporate policies, Tata
Steel 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. Towards this, the Company has taken
several initiatives in areas of resource conservation, pollution control and sustainable
practices for waste management, amongst others. Tata Steel has adopted environment
friendly processes, best available technologies, real-time monitoring systems and IT
enabled dashboards to facilitate environmental responsiveness. Tata Steel maintains
transparency in its environmental performance through various disclosures and reporting
made to stakeholders from time to time. The Company has digitized 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. During the year under review, these digital monitoring practices have been
recognised as "synergized" in the DATOM assessment forming part of the
established digital ecosystem across enterprise and its value chain. During the year under
review, Tata Steel has taken initiatives to retain its Indian benchmark position in CO2
intensity, specific stack dust emissions and specific water consumption. The Company's
newly commissioned UV based Cyanide treatment plant at Coke Oven#2 at Angul Works, got
recognition by Tata Innovista Awards 2021.
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 across all geographies. The
Company is committed to being aligned with India's Nationally Determined Contribution
('NDC') and the European Union's commitment on climate change. In India, the Company has
successfully reduced its carbon footprint in past sixteen years by improving resource
efficiency and technology and strives to attain carbon emission intensity of <1.8 tCO2/tcs
by 2030. To be aligned to its carbon emission target, Tata Steel is taking a range of
efforts across the organisation for Greenhouse Gas Emission reduction activities that
include increasing efficiency of operations, use of recycled clean scraps, Carbon Capture
and Utilization ('CCU'), and hydrogen-based steelmaking.
The Company is signatory to the Task Force on Climate-related Financial
Disclosures ('TCFD') for climate change 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. To move closer towards lower
carbon pathway, the Company is working towards installing 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. During the year under review, the Company has successfully tried injection of
Coal Bed Methane (type of natural gas) in one of its Blast Furnaces to reduce carbon
intensity by replacing metallurgical coke.
In India, the Company, in collaboration with various startups, academia
and other organizations of repute, is working towards developing various projects with
primary focus on decarbonization. During the year under review, the Company commissioned
the CCU pilot plant at Jamshedpur Works, the first of its kind in India that extracts CO2
directly from the Blast Furnace gas. The Company aspires to emerge as a business leader
across the hydrogen and CCU value chain.
Tata Steel is also working towards minimising emission standards. With
the advent of electrification of vehicles and renewable energy system, the Company is
taking efforts to increase the use of renewable energy along with inclusion of high range
electric mobility system. During the year under review, Tata Steel became the first steel
producer in India in transporting steel products in Electronic Vehicles with a minimum
carrying capacity of 35 tonnes of steel.
Tata Steel is collaborating with wide range of organisations in
developing the ecosystem to mitigate climate change transition risk. The Company is also
working on the assessment of the physical risks present at plant sites of operation and
developing adaption strategies for the same.
3. Health and Safety
Health and Safety Management remains the Company's foremost priority
and we are committed to achieve 'Zero Harm'. In pursuit of this objective, the Company
continues to work on six strategies viz. build safety leadership capability at all levels
to achieve zero harm, achieve zero harm to contract employees by strengthening deployment
of contractor safety management standard, improve competency and capability for hazard
identification & risk management, improve road & rail safety across the Company,
excellence in process safety management, and establish industrial hygiene and improve
occupational health.
During the year under review, the Company undertook proactive measures
to minimize the impact of the COVID-19 pandemic on the Company's workforce through agile
decision making and timely and effective deployment of several policies and measures for
the benefit of the employees. A novel initiative, the 'POD concept', which involves
self-sufficient groups of people having self-contained set of skills to do an intended
job, was formed. It was deployed at manufacturing and raw material locations as well as at
profit centres to tackle the spread of COVID-19 within the Company premises. During the
year under review, the Company's efforts for ensuring safety and business continuity
during the pandemic period was recognized by the World Steel Association.
The Company took several initiatives to improve the health and safety
standards of its employees, including rolling out a Reward and Recognition Policy for
Indian operations to encourage positive safety behavior among employees. Further, to boost
employee morale during the pandemic situation, the Company organized the 'SHE Excellence
Award', recognizing and rewarding employees/departments for their remarkable contribution
towards maintaining 'safety, health and sustainability' within the Company.
The Company took initiative to enhance the competency of the workforce
and provided safety training at the Safety Leadership Development Centre formed by the
Company. The Company took several efforts in training the majority workforce in simplified
safety standards through e-modules which helped the Company to strengthen safety
competency.
Contractor's safety has always been a priority for the Company. During
the year under review, the Company introduced 'Ghar Se Ghar Tak' programme for the
contractor workers along with their families, to improve discipline and behavior amongst
themselves. Contractor Safety Management System ('CSMS') has been deployed in all
stockyards and Steel Processing Centres of Tata Steel as well as across Tata Steel Group
Companies.
Further, the initiative to roll out Process Safety through 'Centre of
Excellence' ('CoE') methodology gained momentum, enhancing the process safety competency
for employees. Currently, the process safety through CoE, has been rolled out to 43
departments across locations as well as amongst Tata Steel Group Companies. The Company
has rolled out an integrated Asset Management Framework across India operations after
considering a similar framework existing in Europe.
The Company has set up 'Tactical Centre', for business continuity
management during emergencies at Tata Steel Jamshedpur. This centre will be responsible
for triggering control measures through digital information feed from various stakeholders
and similar facilities are being established at Tata Steel Kalinganagar and Tata Steel
Meramandali. To provide a holistic approach towards the adoption of digital and technology
in maintaining safety within the organization, the Company has formed an internal Apex
Digital & Technology Safety Sub-Committee to focus on maximizing the leverage of
current digital initiatives and designing new initiatives to bolster our key strategies.
Towards Occupational Health, the Company has implemented a
comprehensive Industrial Hygiene program which includes identification of occupational
health hazards, risk analysis, and assessment of actual exposure through hazard
quantification. It 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, more than 500 awareness sessions on 'Health & Well-being' have been
organized across Tata Steel India for the employees and contract employees. These sessions
have helped in reduction of high-risk cases of lifestyle diseases by 57%.
Fatality of people working at Tata Steel premises has been the topmost
safety concern for the Company. It is with deep regret that the Company reports 3
fatalities during the year under review. The Company launched hazard specific Safety
campaigns viz. 'Slip/Trip/Fall', 'Hands are not Tools', 'Zero Toppling', amongst others,
across locations to address gaps and improve safety awareness. Deployment of various
safety initiatives helped the Company in achieving 14% reduction in first-aid cases where
as increase in Slip/Trip/Fall related Lost Time Injuries still remain a major concern.
At Tata Steel Europe, health and safety continues to be of utmost
priority. In another year dominated by the COVID-19 pandemic, the Company responded with
pace and with a coordinated agile approach to protect the health and well-being of all
employees and stakeholders. Effective communication and engagement was key to maintain
safe and healthy working environment and to recognize the challenges to employee's health
and well-being. With this backdrop, the overall safety performance of the Company
improved, and the Company reported no fatalities in Europe during the year under review.
4. Research and Development
Conservation of the environment and sustainability has always been an
important area for the Company. During the year under review, the Research and Development
('R&D') team of the Company has focused in areas such as reduction in Green House Gas
emissions, achieving water neutrality and use of low-grade raw materials. The Company
strives towards reducing its carbon footprint and in alignment to this, the Company has
significantly progressed towards setting up and operating high-end technology driven plant
such as 5 TPD (tonne per day) CO2 capture plant and Cyanide removal plant based
upon patented UV oxidation process.
The Company has also demonstrated continuous injection of Coal Bed
Methane in Blast Furnace at Jamshedpur operations in order to reduce use of coal/coke in
Blast Furnace which in turn would further reduce CO2 emissions. Hydrogen is
seen as another potential solution to decarbonize steel industry and towards this, the
Company has initiated several research programs in collaboration with research institutes
towards production of hydrogen through sustainable process. Working in line with the theme
of efficient usage of raw materials, a novel slag modifier has been developed which allows
smooth Blast Furnace operations even with high alumina iron ore material. This process is
patented and has potential to substantially contribute towards the cost saving of the
Company.
Amongst the notable new product development, the R&D team of the
Company has developed a novel process of manufacturing a new variant of pearlitic (C80)
steel used to modify the microstructure to spheroidised carbides in hot rolled condition.
Crash is one of the most important design considerations for automotive engineers. Tata
Steel has established a facility for studying deformation behaviour of steels at high
strain rates which are usually seen during crash.
Tata Steel R&D team is a pioneer in adding this facility which is
so far available only at a few Government Research Centres in India.
Our thrust on innovation is visible as the Company has filed 125 new
patent applications during the year under review, which is highest ever number achieved by
Tata Steel.
In Europe, R&D has contributed to the development of various new
products and has been involved in the development and implementation of new process
control models and other process improvements. In the Netherlands, the Company has
progressed in its product developments which includes 27 & 38MnB5 steels (high
strength heat treatable BMn steels used in agricultural applications by the
engineering-sector), Serica- FLO (a new Gl-based, zinc coating for exposed panels used by
automotive sector) and HR-S355MC with guaranteed toughness at thick gauge (a HSLA grade
with high impact toughness at low temperatures). The Company has also introduced various
process improvements which includes implementation of coating weight control on
Galvanising Line to visualise the hearth wear in Blast Furnaces, and setting up of new
design of oxygen blow profiles to prevent slopping at convertor processes. Further,
R&D has also been vital in getting many potential new products to reach higher level
of Technology Readiness throughout the year and support the customer interactions on a
technical level. Research & Development continues to help the Company and its
customers in its drive to become more sustainable and more environment friendly. Within
R&D, work continues on Hlsarna project as a novel and more flexible reduction
technology for iron production.
In the United Kingdom, the R&D department supports the business
needs of new product development, process and product improvements and providing customer
support. The Company has identified automotive VAVE/EVI, Engineering Performance Analyses,
Construction and Conveyance Solutions as specific competency areas. Amongst new process
development, the Company has developed a software for automated release of Hot Rolled
products, the use of Through Process Record set tool and Advanced Analytics Toolbox to
investigate the long-standing caster laminations problem. The Company has made significant
achievement in product differentiation by innovating eco-friendly Microwave curing
coatings on steel. During the year under review, the Company has strengthened its
collaboration with various global Universties so as to contribute to research and
development and deliver the much needed technology support to meet business requirements.
The Company has also worked with Steel and Metals Institute SaMI at Swansea University on
better utilisation metrics.
5. New Product Development
During the year under review, the Company developed 62 new products in
India. For superior customer experience, the Company has adopted best in class
manufacturing practices, invested in product branding and developed its products to best
serve its customers. During the year under review, the Company has taken initiatives to
develop high end, niche products in Automotive and Industrial Products, Projects and
Exports segment through continuous engagement with customer. On the automotive segment,
some of the significant developments bolstering growth in high end automotive grades in
India includes development of 22MnB5 used for heat treated long member application, S700MC
[thin] used for automotive structural application, E450 used for axle housing applications
and JSH 590B having >75% hole expansion ratio. In the API (American Petroleum
Institute) segment, noteworthy developement includes successful commercialization of J55
for OCTG (Oil Country Tubular Goods) application in export segment. During the year under
review, the Company has moved to advance stages of development of X42 and X60 with
stringent sour performance guarantee. The Company made significant advancement towards
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. This product advancement had led to import substitution and customer delight.
Further, to maintain leadership position in rebar segment, the Company
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. These grades have been developed as first of their kind in India and they
provide increased drawing speed, increase in die life and better mechanical properties in
the final product.
In Europe, 13 new products were launched during the year. These
launches include major developments for automotive, engineering, and construction markets
in the Netherlands and construction and energy markets in the United Kingdom. In the
Netherlands, in the automotive segment, the Company improved the product performance of
Serica? range thereby offering premium surface finish for market-leading paint appearance
for automotive outer body applications. Additionally, to cater to premium customers, the
Company has introduced new offerings of nickle-plated steel for application in
rechargeable batteries used in Electric Vehicles. In the construction sector, the Company
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 the
Contiflo? range of precision tubes with an odour free and low environmental impact
internal coating aligned to latest environmental standards. The Company 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, the
Company commercialized the Colorcoat? High Reflect Liner A+ organic
coated steel product, thereby catering to customer requirement towards a sustainable
internal coating with A+ VOC which will reduce energy consumption and CO2
emission in construction sector. Additionally, the API X65/X70 energy tube range produced
at Tata Steel's Hartlepool facility was extended to target the large diameter, thin wall
segment to cater to the requirements of a niche market.
6. Customer Relationship
The year under review continued to be a challenging year for the global
economy with two major waves of COVID-19 pandemic. During such challenging times, the
Company stood steadfast with its customers, partners, and other stakeholders and continued
to work on its effort to strengthen this relationship. The Company's digital initiatives
served as a big game changer during the pandemic and helped the Company to revitalize its
engagement with existing customers and reach new customers in unserved territories and
markets.
The Company continued its efforts to enhance its relationship with
automotive manufacturers and their large value chain partners. Considering the changing
business requirements and to serve the customers better, the Company focused towards fast
growth Light Commercial Vehicle segment, technical services offerings such as Vehicle
Teardown and Benchmarking Services, Early Vendor Involvements on upcoming models amongst
others and broadening supply chain capabilities through new processing partners. Further,
the Company's digital initiatives such as digital VAVE (Value Analysis and Value
Engineering) workshops through e-DRIVE platform, supply chain visibility through COMPASS
platform and complaint handling through TSLCares app, has enhanced value driven
engagements with customers.
In B2B segment, the Company has formed cross functional Customer
Service Teams ('CST') with key customer accounts for building and nurturing relationships.
VAVE initiatives for L&E segment also helped in customer value creation. Further, to
enhance service levels to Oil & Gas customers during the pandemic, the Company
extended virtual third-party inspection facility through close co-ordination amongst
multiple internal and external stakeholders. The Company has also collaborated with the
World Steel Association (through ConstructSteel forum) to support them in their effort to
improve steel intensity in construction in India.
The Company continued to nurture the relationship with MSME customers
through 'Ecafez', an online platform where training workshops, events, quality focused
webinars and Micro-segment specific Engagement Programs were conducted. During the year
under review, 180 Ecafez Qualithon engagements were conducted and the 'Ecafez 360' app saw
8,000+ new influencers. The Company also conducted eight new ECA connects for insightful
discussions with over 800 MSMEs / ECAs (Emerging Corporate Accounts) spread across 20
microsegments. DigEca, a digital solution for ECA business, has created real-time, segment
visibility of sales for channel partners and end customers.
Our flagship galvanized retail brands, Tata Shaktee and Tata Kosh,
undertook various marketing initiatives to engage with stakeholders and increase brand
loyalty among consumers. Tata Sampoorna, the channel management platform for Tata Shaktee
was launched for improving consumer (R2C) level leads visibility. Tata Shaktee reached out
to over 10,000 farmers across India via Kisan meets conducted on Kisan Diwas. The
Company's e-selling platform "Aashiyana" through which we sell multiple B2C
brands crossed a turnover of Rs.1,468 crore as against Rs.726 crore in previous year.
Further, Tata Kosh doubled its volumes to 125 KT in FY 2021-22 as against 67 KT in FY
2020-21 by reaching out to over 35 lakh consumers and over 5,000 fabricators.
'Golden Home Consumer' - Tata Tiscon's loyalty and advocacy programme
for Individual House Building segment, strengthened its digital platform and the brand
touched 19,000+ consumers.
In the Services and Solutions segment, the Company has two major
offerings - Tata Pravesh steel doors and windows and Nest-In, a smart steel based modular
construction solution. During the year under review, amidst the pandemic, Tata Pravesh
became the first brand in doors and fenestration industry to set up Authorized Service
Centre - SmartCare for its customers to provide them with superior and uniform customer
experience through professionally trained service team, supported by augmented IT
infrastructure and best in class industry practices. During the year under review, Tata
Pravesh installations grew by ~34% over previous year. Additionally, Tata Pravesh expanded
its Privileged Dealer network to 350 outlets.
Nest-In has built competency in developing and sustaining long-term
value-creating partnerships with its customers and channel partners through unique
interventions and innovative services across several stages of the customer life cycle.
The Company has taken initiatives towards strengthening customer relationships by
leveraging digital tools like SFDC for lead management, MS Project for time and cost
compliance, AR-VR (Augmented Reality - Virtual Reality) facility for providing key
solutions to customer amongst others. These initiatives have helped the Company to
transfer information seamlessly with customers starting from their order placement till
product delivery. Additionally, Nest-In has developed capability of executing more than 60
projects across locations at any given time which has helped in converting revenues into
profits and strengthening customer relations.
Further, the Company also launched two new brands - Tata FerroBaled?
and Tata FerroShred? for the baled & shredded ferrous scrap processed in the new
facility at Rohtak, Haryana, India. These are high quality processed scrap and they
promise to provide the much-needed raw material fillip to Tata Steel /Indian steel
industry by making available quality processed ferrous scrap and reducing the dependency
on imports.
In Europe, the Company partners with customers to help them excel in
their market, co-creating more responsible and sustainable value throughout the entire
value chain. As part of its Transformation Programme, the Company has improved its
integrated initiatives such as the 'Commercial Topline' for driving quality improvements,
and has undertaken initiatives to optimise the product mix, and identify and capture
additional opportunities in the market. 'Commercial Excellence' improvement has been
acknowledged in the Tata Business Excellence Model assessment. The Company also has a
value chain transformation programme previously known as 'Ops 1 & 2' which focusses on
performance throughout the value chain. European operations are increasing its focus on
business development to achieve a balanced portfolio in terms of both products and
customer setup. The Company maintains its differentiation strategy, which aims to increase
the proportion of high margin differentiated 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. Along with products, the Company also offers services such as e-Commerce webshops
and coil sales utilising Dutch Auction methodology.
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 around 2.87 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, efficient 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, prioritizing 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 Rs.406 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 Europe, the Company maintains close relationship with employees,
customers, local residents, NGOs and educational institutions in driving community
development programmes and provides guest lectures on various environmental related topics
including role of steel in our society and processing method of steel. In the Netherlands,
the Company is closely involved in the Technochallenge Foundation, which organises various
activities for primary and secondary schools. During 2021, Promotie Evenement Techniek
event in Beverwijk, Holland was attended by 67 primary schools who were introduced to
recent technologies. Further, on April 21, 2021, the Company also celebrated 'Girl's Day'
and organized an online programme to introduce girl students to the world of science and
technology.
The Company strives to contribute to the future social wellbeing of its
local communities through a Community Partnership Programme, 'Future Generations' which
makes donations and organises activities focused on education, environment as well as
health and well-being. The Company sponsors local activities and supports charities. The
Company also co-operates a programme named 'Telstar at home in the neighbourhood'. As part
of this programme, children with learning difficulties are coached towards a healthy
lifestyle.
The Company also sponsors local sports teams and children's events
which promote community spirit and brings improvement in fields of healthy eating,
teamwork and behavior. The Company also engages with communities as an existing and
potential workforce, running programmes to involve young people, and girls in particular,
so that they can discover the interesting career opportunities that our organisation
offers.
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, is annexed to this Report (Annexure
3).
1. Meetings of the Board and Committees of the Board
The Board met six 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 Report.
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, finance, 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 and 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 qualifications, 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;
During the year under review, there were no substantive changes in the
Policy except to align the Policy with amendments made to applicable laws and the same is
available on the website of the Company at https://www.tatasteel.com/media/6816/
policy-on-appointment-and-removal-of-directors.pdf
3. Familiarization 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 familiarize 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 organized 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/familiarization-programme-for-
independent-directors-for-website.pdf
4. Evaluation
The Board evaluated the effectiveness of its functioning, of the
Committees and of individual Directors, pursuant to the provisions of the Companies Act,
2013 ('Act') and the SEBI Listing Regulations.
The Board sought the feedback of Directors on various parameters
including:
• Degree of fulfillment 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 Chairperson 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 effectiveness 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 IDs and the
meeting of NRC, the performance of the Board, its committees, and individual Directors
were discussed.
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 fiduciary duties.
In the coming year, the Board intends to enhance focus on the ESG
landscape, stakeholder engagement, safety performance including digital interventions and
risk management.
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 ('KMP') 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 sufficient 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, KMP and Senior Management involves a balance between
fixed and incentive pay, reflecting 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 and Non-Executive
Directors.
• 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 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 Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, 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.
7. Directors
The year under review saw the following changes to the Board of
Directors ('Board').
Inductions to the Board
i. Based on the recommendations of the NRC, the Board, on August 12,
2021, in terms of the provisions of the Companies Act, 2013, appointed Ms. Farida Khambata
(DIN: 06954123) as an Additional Director of the Company. 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. Khambata as an Independent Director of
the Company, not liable to retire by rotation, for a period commencing from August 12,
2021 through December 10, 2024, (i.e. up to Ms. Khambata attaining the age of 75 years).
Ms. Khambata brings to the Board her extensive knowledge and experience in areas of
Governance, Risk Management and Finance. On March 25, 2022, the Shareholders of the
Company, by way of a special resolution passed through postal ballot, approved the
appointment of Ms. Khambata as an Independent Director of the Company for the
above-mentioned tenure.
ii. Based on the recommendations of the NRC, the Board of Directors of
the Company, on October 11, 2021, in terms of the provisions of the Companies Act, 2013,
appointed Mr. David W. Crane (DIN: 09354737) as an Additional Director of the Company.
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 Mr. Crane as an Independent
Director of the Company, not liable to retire by rotation, for a period commencing from
October 11, 2021 through October 10, 2026. Mr. Crane brings to the Board his extensive
knowledge and experience in areas of health, safety, environment and sustainability. On
March 25, 2022, the Shareholders of the Company, by way of a special resolution passed
through postal ballot, approved the appointment of Mr. Crane as an Independent Director of
the Company for the above-mentioned tenure.
iii. The NRC after considering, (1) performance evaluation of Mr.
Deepak Kapoor (DIN: 00162957) as a Member of the Board/Commitees, (2) his contribution in
Board/ Committee deliberations during his tenure as an Independent Director and (3) his
skills, background and experience, recommended to the Board for his re-appointment as
Independent Director for a second term of five years. The Board unanimously endorsed the
view of the NRC and recommended to the Shareholders of the Company, the re-appointment of
Mr. Kapoor as an Independent Director of the Company, not liable to retire by rotation, to
hold office for a second term of five years, effective April 1,2022 through March 31,2027.
On March 25, 2022, the Shareholders of the Company, by way of a special resolution passed
through postal ballot, approved the re-appointment of Mr. Kapoor as an Independent
Director of the Company for the above-mentioned tenure.
iv. Based on the recommendations of the NRC, the Board of Directors of
the Company, on March 28, 2022, in terms of the provisions of the Companies Act, 2013,
appointed Mr. Noel Naval Tata (DIN: 09354737) as an Additional Director (Non-Executive,
Non-Independent) of the Company. Further, the Board considering his experience, designated
Mr. Noel Naval Tata as the Vice - Chairman of the Board. Mr. Noel Naval Tata brings to the
Board his extensive knowledge and experience in areas of operations, strategy, risk
management, financial, societal and governance matters.
v. Mr. V. K. Sharma has served as a Non-Executive Director on the Board
of the Company since August 24, 2018. At the time of the appointment as a Member of the
Board, Mr. Sharma was the Chairman of Life Insurance Corporation of India ('LIC'), a
shareholder of Tata Steel Limited. Mr. Sharma ceased to be the Chairman of LIC effective
December 31, 2018. On March 28, 2022, Mr. Sharma conveyed his intention to step down as
representative of LIC and resigned as the Non-Executive Director of the Company with
immediate effect. However, the NRC, after considering, (1) his performance as Member of
the Board, (2) background, qualification, skills & attributes and (3) his contribution
to Board/Committee deliberations during his tenure as a Director of the Company,
considered the proposal to appoint Mr. Sharma as an Independent Director of the Company
for a term of five years from March 28, 2022 through March 27, 2027 (both days inclusive)
and accordingly recommended the same to the Board.
Based on the recommendations of the NRC, the Board of Directors of the
Company, on March 28, 2022, in terms of the provisions of the Companies Act, 2013,
appointed Mr. V. K. Sharma (DIN: 02449088) as Additional Director of the Company. 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 Mr. Sharma as an Independent Director
of the Company, not liable to retire by rotation, for a period commencing from March 28,
2022 through March 27, 2027. Mr. Sharma will continue to bring to the Board his extensive
knowledge and experience in the areas of strategic planning, product development and
branding, risk oversight, compliance and other governance matters.
The necessary resolutions for the appointment of Mr. Noel Naval Tata as
Non-Executive Director and Mr. V.K. Sharma as Independent Director, as mentioned above in
point (iv) and (v), form part of the Postal Ballot Notice dated May 3, 2022. The profile
and particulars of experience, attributes and skills that qualify the above-mentioned
Directors for Board membership, are disclosed in the said Notice. The Notice will be sent
to eligible shareholders as on the cut- off date of April 29, 2022. The e-voting period
for the same shall stay open from 9:00 a.m. (IST) on Thursday, May 12, 2022 through 5:00
p.m. (IST) on Friday, June 10, 2022.
Re-appointment of Directors retiring by rotation
In terms of the provisions of the Companies Act, 2013, Mr. Koushik
Chatterjee (DIN: 00004989), Director of the Company, retires at the ensuing AGM and being
eligible, seeks re-appointment. The necessary resolution for re-appointment of Mr.
Chatterjee forms part of the Notice convening the ensuing AGM scheduled to be held on
Tuesday, June 28, 2022.
The profile and particulars of experience, attributes and skills that
qualify Mr. Chatterjee for Board membership, are disclosed in the said Notice.
Cessations
Dr. Peter Blauwhoff, Independent Director, resigned as a Member of the
Board effective July 13, 2021.
In accordance with the retirement policy applicable for the Company's
Board of Directors (Independent Directors to retire on attaining 75 years of age), Mr.
Aman Mehta, Independent Director, retired from the Board on August 31, 2021.
The Board of Directors places on record its deep appreciation for the
contribution of these Directors during their 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 affect their status as Independent Directors of the Company and
the Board is satisfied of the integrity, expertise, and experience (including proficiency
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 Affairs.
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 effective 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. O. P. Bhatt (Chairman), Mr. Deepak Kapoor,
Ms. Farida Khambata, Mr. David W. Crane and Mr. Saurabh Agrawal. The Committee met six
times during the year under review, the details of which are given in the Corporate
Governance Report forming part of this 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 has 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 Report.
12. Risk Management
Tata Steel's Enterprise Risk Management ('ERM') process is based on
international standards like Committee of Sponsoring Organization of the Treadway
Commission ('COSO') and ISO 31000.
Risk Management Committee ('RMC') of the Board provides oversight and
sets the tone for implementing the ERM framework across the organization. It reviews the
status of key risks, progress of ERM implementation across locations and any exceptions as
flagged to it, on quarterly basis.
The risk appetite of the organization was approved by the RMC and the
Board during FY 2020-21. The risk appetite is aligned to the Vision of the organization
and is an important metric 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 consider impact of climate
change through the internal carbon pricing framework; and
• 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 risk appetite has been cascaded across the organization including the
Tata Steel Group Companies through focused communication during the Annual Business Plan
cycle.
For better focus on Risk Governance and ERM implementation, the Company
has set up a Management Committee called Apex Risk Committee ('ARC'). ARC has the primary
responsibility of implementing the Risk Management Policy of Tata Steel and developing a
risk intelligent culture that fosters business resilience. ARC reviews include detailed
discussions on key risk themes, progress of mitigation plans, exceptions as flagged to it
and new initiatives related to ERM.
Central ERM is a dedicated business vertical that has been set up to
ensure deployment of the 5 Step bottom-up process across the organization. The team is led
by Vice President - Corporate Finance, Treasury & Risk Management who acts as the
Chief Risk Officer of the Company. The ERM team continuously scans the external
environment for developments which may throw up risks for the organization. The risk flags
and risk insights are shared with the Business Units ('BUs'). These form inputs to the BUs
for identification 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 identification
of strategic, enterprise level risks.
The Company follows coordinated risk assurance and the ERM process is
integrated with Corporate Audit, Strategy & Business Planning, Corporate Legal, Ethics
& Compliance functions. The two-way communication with these functions brings further
rigor in driving the process across the organization and the Tata Steel Group Companies.
The ERM process being data intensive, an in-house built IT system has been developed
across the organization 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 ERM
framework is used while identifying, assessing, evaluating, monitoring & reviewing
risks.
Tata Steel was conferred with the 'RIMS India ERM Award for
Distinction', the only company to receive this award in India in 2021. The Risk and
Insurance Management Society (RIMS) Global ERM Award of Distinction honors organizations
that create and retain value through their Enterprise Risk Management programs and ERM
excellence that demonstrates ERM innovation in creating and preserving organizational
value, and the program's ability to build sustaining risk management capabilities. The
Company has also been adjudged 'Masters of Risk in Metals & Mining' and 'Risk
Technology' categories, at the 8th edition of 'The India Risk Management
Awards' for the sixth time in a row.
Risk intelligent culture of Tata Steel has established ERM as an
enabler to proactively manage the uncertainties in an unprecedented and volatile business
environment and achieve business objectives. During the year under review, with the
resurgence of COVID-19 pandemic, "Scenario-based risk assessment" was revisited
across Tata Steel to understand the change in best-case and worst-case scenarios. The
focus was on identification of "Early Warning Indicators" for proactive Risk
Management. Real-time digital dashboard was developed and reviewed by the Senior
Leadership Team periodically for decision making. The Company continues its focus on
creating sustainable value for building resilience amidst dynamic and uncertain business
environment.
During the year under review, the Company continued to be vigilant of
the evolving pandemic situation to proactively manage risks. Health and safety of
employees and the communities in the vicinity of the Company's operations remained the
top-most priority for the Company, whilst simultaneously ensuring continuity of our
business operations.
Implementation of focused risk mitigation strategies coupled with
improvement in the global and domestic macro environment has significantly improved Tata
Steel's risk profile for FY 2021-22. Despite the challenges posed by COVID-19, the Company
has been able to deleverage beyond the target set in the past two years.
13. Vigil Mechanism
Tata Steel always believes in promoting a culture of trust and
transparency. The vigil mechanism in Tata Steel resonates with the same values. 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 protective disclosures about the
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 includes policies viz. the Whistleblower Policy for
Directors & Employees, the Whistleblower Policy for Business Associates, the
Whistleblower Protection Policy for Business Associates (vendors/customers), the Gift and
Hospitality Policy, the Conflict of Interest Policy for Employees, the Anti-Bribery &
Anti-Corruption ('ABAC') Policy, and Anti-Money Laundering ('AML') Policy.
The Whistleblower Policies for Directors & Employees and Business
Associates and TCoC encourage every Director, employee, and Business Associate to promptly
report any actual or possible violation of the TCoC or any event that he or she becomes
aware of that could affect the business or reputation of the Company. The Company ensures
protection for the whistleblowers and any attempts to intimidate the whistleblower would
be treated as a violation of the TCoC. This 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 SEBI Listing Regulations.
The Whistleblower Protection Policy for Business Associates including
vendors and customers provides protection to Business Associates from any victimization or
unfair trade practices by the Company. While the Whistleblower policy encourages
Whistleblowers to make protected disclosures in good faith, it also forbids raising
concerns with malicious intent.
The ABAC and AML policies primarily cover risk assessment, third party
due diligence, training & awareness, and audit & reporting.
The Gift and Hospitality Policy aims to provide guidance to directors,
officers and 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 Conflict of Interest Policy that
requires employees to act in the best interest of the Company without any conflicts and
declare conflicts, 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 frames prescribed in the Whistleblower Policy.
The Company continues to make available a Third-Party Whistleblowing
helpline service through an external service provider across the Company as well as Tata
Steel Group Companies. The Ethics helpline services includes toll free number, web access,
postal services and e-mail facilities. This helpline service acts as a platform within the
Tata Steel Group Companies, to raise concerns on unethical behavior and enhance 'zero
tolerance towards unethical activities'. Around 40% of the reportees use this medium to
raise their whistleblowing concerns. During the year under review, the Company has
conducted several training sessions for its employees, vendors and distributors, spreading
awareness towards TCoC, ABAC & AML Policy, Whistleblower Policy and other ethical
practices of the Company.
During the year under review, the Company received 845 whistleblower
complaints of which as on March 31, 2022, 601 complaints were investigated and appropriate
actions were taken and investigations were underway for the remaining 244 complaints.
14. Disclosure as per the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013
The Company has 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 Company received 22 complaints of
sexual harassment, of which 18 complaints have been resolved by taking appropriate actions
and 4 complaints are under investigation.
15. 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. During the
year under review, the Policy has been amended to incorporate the regulatory amendments in
the SEBI Listing Regulations. The updated Policy can be accessed on the Company's website
at https://www.tatasteel. com/media/5891/policv-on-related-partv-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. Also, there were no
material related party contracts entered into by the Company during the year under review.
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 FY
2021-22 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 2021-22.
16. 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 effective during FY 2021-22.
Accordingly, pursuant to Section 134(5) of the Act, the Board of
Directors, to the best of its knowledge and ability confirms 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 affairs 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 sufficient 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
effectively;
f) they have devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems are adequate and operating
effectively.
17. Business Responsibility and Sustainability Report
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 ('BRR') 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 capitalization, to transition to BRSR from FY
2022-23 onwards.
For FY 2021-22, the Company has followed the <IR> framework of
the International Integrated Reporting Council (now known as Value Reporting Foundation),
to report on all the six capitals that are used by the Company to create long-term
stakeholder value. The Company has done the requisite mapping of principles between the
Integrated Report, the Global Reporting Initiative ('GRI') and the BRR principles as
prescribed by SEBI and the same is available on our website at www.tatasteel.com. Our
Integrated Report has been assessed and Price Waterhouse & Co Chartered Accountants
LLP has provided the required assurance.
18. Subsidiaries, Joint Ventures and Associates
We have 172 subsidiaries and 45 associate companies (including 25 joint
ventures) as on March 31, 2022. During the year under review, the Board of Directors
reviewed the affairs 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
at 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).
19. 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
for a period of five years commencing from the conclusion of the 110th AGM held
on August 8, 2017 until the conclusion of 115th AGM of the Company to be held
in the year 2022.
In terms of the provisions of the Companies Act, 2013, an audit firm
acting as the statutory auditor of a company is eligible to be appointed as statutory
auditors for two terms of five years each. The first term of PW as statutory auditors of
the Company expires at the conclusion of the 115th AGM of the Company scheduled
to be held on June 28, 2022. Considering their performance as auditors of the Company
during their present tenure, the Audit Committee of the Company, after due deliberation
and discussion, recommended the re-appointment of PW as statutory auditors of the Company
for a second term of five years to hold office from the conclusion of the 115th
AGM to be held on June 28, 2022 through the conclusion of the 120th AGM of the
Company to be held in the year 2027. Further, the remuneration to be paid to Statutory
Auditors for FY 2022-23 is Rs.10 crore plus out of pocket expenses and applicable taxes
and the remuneration for the remaining tenure of their second term as Statutory Auditors
shall be mutually agreed between the Board of Directors and PW, from time to time.
The above proposal forms part of the Notice of the AGM for your
approval.
The report of the Statutory Auditor forms part of this Integrated
Report and Annual Accounts 2021-22. The said report does not contain any qualification,
reservation, adverse remark or disclaimer. During the year under review, the Auditors did
not report any matter under Section 143(12) of the Act, therefore no detail is required to
be disclosed under Section 134(3)(ca) of the Act.
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, 2023. M/s
Shome & Banerjee have vast experience in the field of cost audit and have been
conducting the audit of the cost records of the Company for the past several years.
Further, Tata Steel BSL Limited has amalgamated into and with Tata
Steel Limited effective November 11, 2021, pursuant to the Composite Scheme of
Amalgamation of Tata Steel BSL Limited and Bamnipal Steel Limited into and with Tata Steel
Limited as sanctioned by the Hon'ble National Company Law Tribunal, Mumbai Bench, vide
Order dated October 29, 2021. Consequent to the amalgamation, the scope of cost audit has
enhanced. Accordingly, the Board, based on the recommendation of the Audit Committee, has
approved an increased remuneration to Rs.30 lakhs plus applicable taxes and reimbursement
of out-of-pocket expenses payable to the Cost Auditors for conducting cost audit of the
Company for FY 2022-23. The same is placed for ratification 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 Auditors to conduct
Secretarial Audit of the Company for the FY 2021-22 and their Report is annexed to this
report (Annexure 7). There are no qualifications, observations, adverse remarks or
disclaimer in the said Report.
20. Annual Return
The Annual Return for FY 2021-22 as per provisions of the Act and Rules
thereto, is available on the Company's website at
https://www.tatasteel.com/media/15859/mgt7-combine.pdf.
21. 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.
22. 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).
23. 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).
24. 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.
25. 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 Company
Secretaries of India and such systems are adequate and operating effectively.
J. Acknowledgements
The Directors regret the loss of life due to COVID-19 pandemic and are
deeply grateful and have immense respect for every person who risked their life and safety
to fight this pandemic. 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 3, 2022 |
DIN: 00121863 |