The production of saleable steel was higher by 20% at 6.4 million tonne during the year against 5.3 million tonne produced in the previous fiscal
Tata Steel recently announced that its sales grew by 18 per cent to 6.1 million tonne in 2009-10 compared to 5.2 million tonne in the previous fiscal.
The production of saleable steel was higher by 20 per cent at 6.4 million tonne during the year against 5.3 million tonne produced in the previous fiscal, the company said.
Tata Steel Managing Director H M Nerurkar said margins were under pressure and would remain so in the coming year due to expected sharp rise in input cost and oversupply in the global market.
The company’s capacity in Indian operations, restricted in Jamshedpur at 7 million tonne, would be ramped up to 10 million tonne.
Speaking about Chattisgarh and Jamshepur, Nerurkar said work was not progressing, but it could not be said that the projects had been dropped.
Unless a proper relief and rehabilitation policy was in place the company was not in favour of moving aggressively with land acquisition in Jharkhand though there was no resistance to it.
Nerurkar said the company was still in difficulty over its Orissa project as some 300 displaced families were yet to be rehabilitated.
He, however, said there was limited scope for substantial increase in capacity above 10 million tonne at Jamshedpur owing to environmental issues, raw material linkages and population pressure.
Nerurkar said operations were not hampered so far though iron-ore could not be loaded for 17 days from the Joda mine in Keonjhar as the Orissa government has prohibited mining.
Social audit of Kalinganagar project
Tata Steel will form a committee for a social audit of its Orissa project in wake of allegations of human rights violations.
Nerurkar questioned when operations in Orissa were yet to begin how such violations could take place. “The company always work with communities wherever it works and here also we are open to any audit.”
On the domestic front, Nerurkar said the company sources iron ore from its captive mines but has to depend on imported coal for up to 55% of its entire coking coal requirement, and would be impacted to that extent.
Consequently, borrowing costs could also rise. “There could be a significant impact on borrowings,” Nerurkar said.
He said that margins for steel manufacturers will be under pressure for not only the rising raw material prices but also because of the glut in the global market to the extent of 1.2 billion tonne.
Tata Steel expects its sales to touch 10 million tonne in 2012-13, Nerurkar said. In 2011-12, it expects sales to increase 10% by 0.6-0.7 million tonne (mt). Overall sales in 2009-10, at 6.170 mt, grew 18% against 5.232 mt in 2008-09.
The company’s saleable steel output, at 6.44 mt, is expected to rise to 6.92 mt in 2010-11.
Tata Steel will invest Rs15,000 crore to set up a blast furnace of 3 million tonne per annum capacity and a pellet plant of 6 mtpa capacity among others. Orders worth Rs13,000 crore have been finalised.
Indian steel demand is expected to grow by 10% in 2010-11 to 59 mt against 54 mt in 2009-10. Demand will be driven by auto, infrastructure and construction segments.
Domestic steel production is expected to touch 90 mt by 2015.
China and India are the two centres of steel demand. Global demand in 2010 is 70% of the installed capacity.
Tata Steel recently announced that its sales grew by 18 per cent to 6.1 million tonne in 2009-10 compared to 5.2 million tonne in the previous fiscal.
The production of saleable steel was higher by 20 per cent at 6.4 million tonne during the year against 5.3 million tonne produced in the previous fiscal, the company said.
Production & Sales Performance
Tata Steel Managing Director H M Nerurkar said margins were under pressure and would remain so in the coming year due to expected sharp rise in input cost and oversupply in the global market.
The company’s capacity in Indian operations, restricted in Jamshedpur at 7 million tonne, would be ramped up to 10 million tonne.
Speaking about Chattisgarh and Jamshepur, Nerurkar said work was not progressing, but it could not be said that the projects had been dropped.
Unless a proper relief and rehabilitation policy was in place the company was not in favour of moving aggressively with land acquisition in Jharkhand though there was no resistance to it.
Nerurkar said the company was still in difficulty over its Orissa project as some 300 displaced families were yet to be rehabilitated.
He, however, said there was limited scope for substantial increase in capacity above 10 million tonne at Jamshedpur owing to environmental issues, raw material linkages and population pressure.
Nerurkar said operations were not hampered so far though iron-ore could not be loaded for 17 days from the Joda mine in Keonjhar as the Orissa government has prohibited mining.
Social audit of Kalinganagar project
Tata Steel will form a committee for a social audit of its Orissa project in wake of allegations of human rights violations.
Nerurkar questioned when operations in Orissa were yet to begin how such violations could take place. “The company always work with communities wherever it works and here also we are open to any audit.”
On the domestic front, Nerurkar said the company sources iron ore from its captive mines but has to depend on imported coal for up to 55% of its entire coking coal requirement, and would be impacted to that extent.
Consequently, borrowing costs could also rise. “There could be a significant impact on borrowings,” Nerurkar said.
He said that margins for steel manufacturers will be under pressure for not only the rising raw material prices but also because of the glut in the global market to the extent of 1.2 billion tonne.
Tata Steel expects its sales to touch 10 million tonne in 2012-13, Nerurkar said. In 2011-12, it expects sales to increase 10% by 0.6-0.7 million tonne (mt). Overall sales in 2009-10, at 6.170 mt, grew 18% against 5.232 mt in 2008-09.
The company’s saleable steel output, at 6.44 mt, is expected to rise to 6.92 mt in 2010-11.
Tata Steel will invest Rs15,000 crore to set up a blast furnace of 3 million tonne per annum capacity and a pellet plant of 6 mtpa capacity among others. Orders worth Rs13,000 crore have been finalised.
Indian steel demand is expected to grow by 10% in 2010-11 to 59 mt against 54 mt in 2009-10. Demand will be driven by auto, infrastructure and construction segments.
Domestic steel production is expected to touch 90 mt by 2015.
China and India are the two centres of steel demand. Global demand in 2010 is 70% of the installed capacity.
Major Highlights
- Best ever Hot metal (7.231 million tonnes), Crude steel (6.564 million tonnes) and Saleable steel (6.439 million tonnes) production.
- H blast furnace achieved best ever annual production of 3.07 MT (22% higher than designed capacity of 2.5 MT).
- G blast furnace achieved best ever annual production of 2.08 MT (Previous best 2.04 million tonnes in FY’09).
- In line with Tata Steel’s expansion plans, the capacity enhancement of ‘C’ Blast furnace from 0.4 mtpa to 0.7 mtpa was commissioned in Sept’09.It is the first operating blast furnace in the world to incorporate Gimbal Top technology for raw material charging system.
- One of the Steel Melting Shop (LD#2 & Slab Caster) achieved best ever slab production of 3.70 million tonnes (Previous best 3.51 million tonnes in FY’09).
- LD#1, another Steel Melting Shop also achieved best ever annual billet production of 2.85 million tonnes (Previous best 2.105 million tonnes in FY’09).
- Sinter Plant produced 7.66 million tonnes sinter which is the best ever (Previous best 6.53 million tonnes in FY’09). Highest ever solid waste utilization at 90% (Previous best 89.61% in FY’09).
- Hot Strip Mill achieved highest ever production of 3.65 million tonnes (Previous best 3.27 million tonnes in FY’08).
- Cold Rolling Mill achieved highest ever production of 1.563 million tonnes (Previous best 1.534 million tonnes in FY’08).
- New Bar Mill achieved highest ever production of 0.672 million tonnes (Previous best 0.612 million tonnes in FY’09).
- Wire Rod Mill achieved highest ever production of 0.419 million tonnes (Previous best 0.416 million tonnes in FY’06).
- Merchant Mill achieved highest ever production of 0.341 million tonnes (Previous best 0.328 million tonnes in FY’09).
- West Bokaro Division achieved highest ever clean coal production of 2.14 million tonnes (Previous best 1.98 million tonnes in FY’09).
- Overall sales at 6.170 million tonnes, grew by 18 % over last year (5.232 million tonnes in FY’09).
- 34 % increase in Long products sales at 2.697 million tonnes (2.006 million tonnes in FY’09).
- 8 % increase in Flat products sales at 3.473 million tonnes (3.226 million tonnes in FY’09)
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