Tata Iron and Steel Company Limited

completed

The Tata Iron & Steel Company Limited (Tata Steel or the company) is a fully integrated steel company headquartered in Mumbai, Maharashtra, India. Tata Steel is a cost-competitive steel manufacturer primarily due to its captive iron ore and coal mines. The company produces hot & cold rolled products and long products at its facility in Jamshedpur (state of Jharkhand), and Mumbai (state of Maharashtra), India. In the year ended March 31, 2004, the company sold 3.96 million tonnes of steel and recorded a net income of $380 million.Tata Steel wants to become a competitive, global player with a significantly larger capacity. The company plans to - increase its production capacity from its current 5 million tonnes per annum (MTPA) to 7.4 MTPA by 2009 and to 15 MTPA by 2010 through organic growth and acquisitions in India and overseas; - move up the value chain and improve its product mix; - further improve its cost competitiveness by improving operational efficiency; and - maintain its leading position in the Indian market, where further growth is expected.To achieve these goals, the company plans to implement a $2.6 billion investment program. The investment program consists of the following: - a capacity expansion program in two phases – Phase I includes a 1 MTPA capacity expansion which is under final stage of completion, Phase II includes a 2.4 MTPA capacity expansion and modernization program - both at its operations in Jamshedpur; and - the acquisition of the steel-related businesses of NatSteel Limited (NatSteel), a Singaporean company with operations in five emerging countries in Asia, including China.