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NATURE OF THE INDUSTRY NATURE OF THE INDUSTRY

Steel industry belongs to the manufacturing sector and TATA Steel is the worlds seventh largest steel

manufacturing company

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STEEL INDUSTRY STEEL INDUSTRY India is the fifth largest producer of steel in the

world.India Steel Industry has grown by leaps and bounds,

especially in recent times with Indian firms buying steelcompanies overseas. The scope for steel industry is huge and industry

estimates indicate that the industry will continue will togrow reasonably in the coming years. The government is planning a massive enhancement

of the steel production capacity of India with themodernization of the existing steel plants.

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TATA S TEEL TATA S TEEL

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TATA STEEL TATA STEEL Tata Steel , formerly known as TISCO and Tata Iron

and Steel Company Limited, is the world's seventhlargest steel company, with an annual crude steel

capacity of 31 million tones.It is the largest private sector steel company in India

in terms of domestic production. Tata Steel Limited is a diversified steel producer.

It has a global presence in 50 markets andmanufacturing operations in 26 countries.

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TATA STEEL TATA STEEL The Company provides steel for different industries,

which include construction, automotive, aerospace,consumer goods, materials handling, energy and power,

rail, engineering, shipbuilding, packaging, and security and defense.

Tata Steel provides a range of products andinfrastructure services to the international railway industry, which include rail section sizes, steel sleeperproducts and other specialized track components.

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TATA STEEL TATA STEEL The Company's operations relate to manufacture of

Steel. Its other business segments consists of tubes,bearings, refractory's, pigments, port operations, town

services and investment activities.

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PROSPECTS OF STEELPROSPECTS OF STEEL

INDUSTRY INDUSTRY Indian steel industry is closely linked with domestic

economic growth.

India housing and construction industry is likely togrow in India, which is one of the major steelconsuming industries.

Growing Indian automobile industry, which dependson steel industry for parts manufacturing, will lead to astrong steel demand in future.

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PROSPECTS OF STEELPROSPECTS OF STEEL

INDUSTRY INDUSTRY Recent increase in production capacity and foreign

investment in India is pushing the Indian steel

Production.Demand is expected to rise in future with economic

and industrial growth. The high cost of electricity in India may hamper the

steel industrys production level.

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FINISHED STEEL (MN.Tn)

12

5

4

3.4

SAIL TATA STEEL JINDAL STEEL ESSAR STEEL

M ARKET SHARE OFM ARKET SHARE OF

TATA STEEL TATA STEEL24.4 Million tones24.4 Million tones

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SHAREHOLDINGSHAREHOLDING

PATTERNPATTERN

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Sales Variable cost Fixed Cost Profit

2007-2008 21392.39 5510.99 1163.28 7066.36

2008-2009 25945.45 6670.27 1273.58 7315.61

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Contribution

P/V ratio Break Ev enPoint(Rs)

Marginof Safety

OperatingL e v erage

2007-2008 1588.14 0.7423 11872.843 9519.5473 14326.03

2008-2009 19275.18 0.74291 16059.491 9885.9594 18629.84

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