Tata Steel : Commitment to Excellence
Iron makingSteel makingCastingRollingNew SP # 3 : 2 mtpa G BF Upgradation from 1.24 to 1.8 mtpa, increase coal injectionFourth stove at G BFAugmentation of pulverized coal injection for F & D BF 1 MTPA expansion
Iron makingSteel makingCastingRollingLD#1, Two Billet castersCapacity from 1.5 to 1.8 mtpa One caster to cast larger sections LD#2, Three slab castersCapacity from 2.7 to 3.2 mtpaHSM capacity from 2.6 to 3.1 mtpa New Rebar mill of 0.6 mtpa1 MTPA expansion
1 mtpa expansion : Balancing facilities & utilities Bedding & blending yard capacity from 4 to 7.75 mtpa 6th Lime kiln : 425 tpd New PH#5, Conversion of 7 boilers from coal fired to gas firedNew oxygen plant : 720 tpd
1 mtpa expansion : Quality improvement 100% Desulphurization 2nd ladle furnace in LD1One vertical bending caster Auto slab scarfing machine Auto surface inspection system at HSM On line pinch roll polisher
G Blast Furnace
5 MT crude steelReduce cost Reduce specific consumptionImprove productivityImprove raw material qualityImprove product mix Tata Steel FY06 Plan
FY06 : Daily crude steel production 103 tpd5 mtpy = 13700 tpd1st April31st Aug'G' Fce. Blown in HSM ShutdownLD#2 : Caster # 3 shutdown
G Fce. Production ( kt / month )Blown out for upgradation : 3rd Dec041.8 mtpa = 150 kt/monthMayJul
Cost comparison F , G vs. A to E 100135110Period Aug05Indexed (Rs/t)
RMIM_AUG05 (2)
Report Run Date:05.09.2005Page #:1
Selection Criteria
Material(s) :
Material Group(s) :423,429,430,440,443,455,
Product Heirarchy :
Valuation Type(s) :
Plant(s) :077,
Posting Period(s) :005 -005,
Fiscal Year :2006
Show Arising Quantity
PrimeTotalTarget Cost-Single Level-Single Level-Multi-LevelMulti-LevelGross Actual
Material GroupProduction QuantityArising QuantityProductionRs/TnVar. Rs/TnCost Rs/TnVar. Rs/TnCost Rs/TnCost Rs/Tn
423-FUEL
000000000140000015-"CRUDE CO GAS-SC 5,6,7(CO-PRODUCT)"141,322.110141,322.11531.3319.79551.1235.47586.59586.59
000000000140000016-"CRUDE CO GAS-SC 8,9(CO-PRODUCT)"157,862.790157,862.79523.0742.18565.25-10.68554.57554.57
000000000140000017-CRUDE CO GAS-TC(CO-PRODUCT)48,570.20048,570.20674.56128.24802.8-25.64777.16777.16
347,755.100347,755.10547.5945.1592.695.99598.68598.67
429-Hot Metal A to F Fce
000000000100000180-HOT METAL PRODUCTION FROM BF-A45,585.40045,585.406,236.47-206.726,029.75-329.535,700.225,700.22
000000000100000182-HOT METAL PRODUCTION FROM BF-B33,599.20033,599.204,923.09455.725,378.81-609.464,769.354,769.35
000000000100000183-HOT METAL PRODUCTION FROM BF-C31,885.60031,885.605,234.051,409.226,643.27-872.265,771.015,771.01
000000000100000184-HOT METAL PRODUCTION FROM BF-D51,452.20051,452.206,348.20206.556,554.75-759.35,795.455,795.45
000000000100000185-HOT METAL PRODUCTION FROM BF-E33,492.80033,492.808,581.69798.439,380.12-3,232.726,147.406,147.40
000000000100000186-HOT METAL PRODUCTION FROM BF-F105,920.500105,920.505,638.62-1,531.564,107.06100.964,208.024,208.02
301,935.700301,935.706,053.92-245.195,808.73-662.255,146.485,146.471827894572.9441753862958.6611553906041.336
430-Hot Metal G Fce
000000000100000187-HOT METAL PRODUCTION FROM BF-G157,131.600157,131.604,373.41296.724,670.1386.874,757.004,757.00
157,131.600157,131.604,373.41296.724,670.1386.874,757.004,757.00687200910.756733824999.108747475021.2
HOT METAL (A-G BF)459,067.305,478.715,419.005,013.172515095483.72487687957.7692301381062.536
440-Sinter
000000000100000188-NET SINTER 1130,151.000130,151.001,137.16-59.761,077.4098.731,176.131,176.13
000000000100000189-NET SINTER 2173,015.000173,015.001,056.29-40.871,015.4283.371,098.791,098.79
000000000100003355-NET SINTER 3:175,115.000175,115.001,128.09272.991,401.08-58.241,342.841,342.84
SINTER478,281.000478,281.001,104.5868.91,173.4835.71,209.181,209.19
443-Base Mix and Flux
000000000100000172-BASE MIX350,738.000350,738.00635.07-10.79624.28-26.62597.66597.66
000000000100000173-CRUSHED COKE BREEZE19,747.04019,747.042,665.92-1,193.631,472.29994.612,466.902,466.90
000000000100000174-CRUSHED LIME FLUX1,681.0001,681.001,407.38-289.471,117.91570.341,688.251,688.25
000000000100002404-CRUSHED LIME FINES7,055.0007,055.001,352.0201,352.0217.071,369.091,369.09
000000000100003351-SP#3: CRUSHED COKE BREEZE13,336.00013,336.002,290.37-840.421,449.95977.872,427.822,427.82
000000000100003352-SP# 3:CRUSHED LIME FLUX :46,810.00046,810.001,352.2534.391,386.64-44.771,341.871,341.87
000000000100003354-SP#3: BASE MIX336,058.000336,058.00643.19-20.87622.32-44.21578.11578.11
775,425.040775,425.04770.27-57.33712.949.63722.57722.57
455-Coke
000000000120000091-BF COKE-SC 5,6,770,813.00070,813.003,414.36250.113,664.47263.313,927.783,927.78241781074.68259492114.11278137885.14
000000000120000092-BF COKE-SC 8,979,375.00079,375.003,353.54392.083,745.62-793,666.623,666.62266187237.5297308587.5291037962.5
000000000120000093-BF COKE-TC26,122.00026,122.004,468.79666.395,135.18-177.384,957.804,957.80116733732.38134141171.96129507651.6
OWN BF COKE176,310.003,543.203,918.903,962.81624702044.56690941873.57698683499.24
000000000120000094-NUT COKE- TC(CO-PRODUCT)3,358.0003,358.003,587.85-581.113,006.74-103.862,902.882,902.8812048000.310096632.929747871.04
000000000120000096-NUT COKE-SC 5,6,7(CO-PRODUCT)8,564.0008,564.002,741.28-460.612,280.67163.882,444.552,444.5523476321.9219531657.8820935126.2
000000000120000097-NUT COKE-SC 8,9(CO-PRODUCT)8,909.0008,909.002,692.45-180.62,511.85-52.982,458.872,458.8723987037.0522378071.6521906072.83
OWN NUT COKE20,831.002,856.872,496.592,524.5659511359.2752006362.4552589070.07
000000000120000283-BF Coke(Converted by outside agent)20,670.40020,670.402,692.45-77.842,614.61-22.832,591.782,591.78
000000000120000400-Low Ash Converted Coke3,500.0003,500.002,692.45-459.712,232.74-134.852,097.892,097.89
000000000120000410-High CSR coke4,000.0004,000.002,692.45-402.242,290.21-117.992,172.222,172.22
000000000120000953-HCC-40/WBC-30/JDB-3015,019.64015,019.642,692.45-107.122,585.33-31.422,553.912,553.91
240,331.040240,331.043,330.82217.613,548.4326.783,575.213,575.22
Grand Total2,300,859.4802,300,859.482,012.9912.642,025.63-66.61,959.031,959.02
Chart1
5654
4208
4757
Chart2
134.3631178707
100
113.0465779468
Sheet1
A TO E1345654
F1004208
G1134757
RMIM_AUG05
Report Run Date:05.09.2005Page #:1
Selection Criteria
Material(s) :
Material Group(s) :423,429,430,440,443,455,
Product Heirarchy :
Valuation Type(s) :
Plant(s) :077,
Posting Period(s) :005 -005,
Fiscal Year :2006
Show Arising Quantity
PrimeTotalTarget Cost-Single Level-Single Level-Multi-LevelMulti-LevelGross Actual
Material GroupProduction QuantityArising QuantityProductionRs/TnVar. Rs/TnCost Rs/TnVar. Rs/TnCost Rs/TnCost Rs/Tn
423-FUEL
000000000140000015-"CRUDE CO GAS-SC 5,6,7(CO-PRODUCT)"141,322.110141,322.11531.3319.79551.1235.47586.59586.59
000000000140000016-"CRUDE CO GAS-SC 8,9(CO-PRODUCT)"157,862.790157,862.79523.0742.18565.25-10.68554.57554.57
000000000140000017-CRUDE CO GAS-TC(CO-PRODUCT)48,570.20048,570.20674.56128.24802.8-25.64777.16777.16
347,755.100347,755.10547.5945.1592.695.99598.68598.67
429-Hot Metal A to F Fce
000000000100000180-HOT METAL PRODUCTION FROM BF-A45,585.40045,585.406,236.47-206.726,029.75-329.535,700.225,700.22284291979.538274868565.65259846808.788
000000000100000182-HOT METAL PRODUCTION FROM BF-B33,599.20033,599.204,923.09455.725,378.81-609.464,769.354,769.35165411885.528180723712.952160246344.52
000000000100000183-HOT METAL PRODUCTION FROM BF-C31,885.60031,885.605,234.051,409.226,643.27-872.265,771.015,771.01166890824.68211824649.912184012116.456
000000000100000184-HOT METAL PRODUCTION FROM BF-D51,452.20051,452.206,348.20206.556,554.75-759.35,795.455,795.45326628856.04337256307.95298188652.49
000000000100000185-HOT METAL PRODUCTION FROM BF-E33,492.80033,492.808,581.69798.439,380.12-3,232.726,147.406,147.40287424826.832314166483.136205893638.72
196,015.206,278.336,728.255,653.581230648372.6181318839719.61108187560.974
000000000100000186-HOT METAL PRODUCTION FROM BF-F105,920.500105,920.505,638.62-1,531.564,107.06100.964,208.024,208.02597245449.71435021848.73445715582.41
301,935.700301,935.706,053.92-245.195,808.73-662.255,146.485,146.471827894572.9441753862958.6611553906041.336
301,935.706,053.925,808.735,146.471827893822.3281753861568.331553903143.384
430-Hot Metal G Fce
000000000100000187-HOT METAL PRODUCTION FROM BF-G157,131.600157,131.604,373.41296.724,670.1386.874,757.004,757.00
157,131.600157,131.604,373.41296.724,670.1386.874,757.004,757.00687200910.756733824999.108747475021.2
HOT METAL (A-G BF)459,067.305,478.715,419.005,013.172515095483.72487687957.7692301381062.536
440-Sinter
000000000100000188-NET SINTER 1130,151.000130,151.001,137.16-59.761,077.4098.731,176.131,176.13
000000000100000189-NET SINTER 2173,015.000173,015.001,056.29-40.871,015.4283.371,098.791,098.79
000000000100003355-NET SINTER 3:175,115.000175,115.001,128.09272.991,401.08-58.241,342.841,342.84
SINTER478,281.000478,281.001,104.5868.91,173.4835.71,209.181,209.19
443-Base Mix and Flux
000000000100000172-BASE MIX350,738.000350,738.00635.07-10.79624.28-26.62597.66597.66
000000000100000173-CRUSHED COKE BREEZE19,747.04019,747.042,665.92-1,193.631,472.29994.612,466.902,466.90
000000000100000174-CRUSHED LIME FLUX1,681.0001,681.001,407.38-289.471,117.91570.341,688.251,688.25
000000000100002404-CRUSHED LIME FINES7,055.0007,055.001,352.0201,352.0217.071,369.091,369.09
000000000100003351-SP#3: CRUSHED COKE BREEZE13,336.00013,336.002,290.37-840.421,449.95977.872,427.822,427.82
000000000100003352-SP# 3:CRUSHED LIME FLUX :46,810.00046,810.001,352.2534.391,386.64-44.771,341.871,341.87
000000000100003354-SP#3: BASE MIX336,058.000336,058.00643.19-20.87622.32-44.21578.11578.11
775,425.040775,425.04770.27-57.33712.949.63722.57722.57
455-Coke
000000000120000091-BF COKE-SC 5,6,770,813.00070,813.003,414.36250.113,664.47263.313,927.783,927.78241781074.68259492114.11278137885.14
000000000120000092-BF COKE-SC 8,979,375.00079,375.003,353.54392.083,745.62-793,666.623,666.62266187237.5297308587.5291037962.5
000000000120000093-BF COKE-TC26,122.00026,122.004,468.79666.395,135.18-177.384,957.804,957.80116733732.38134141171.96129507651.6
OWN BF COKE176,310.003,543.203,918.903,962.81624702044.56690941873.57698683499.24
000000000120000094-NUT COKE- TC(CO-PRODUCT)3,358.0003,358.003,587.85-581.113,006.74-103.862,902.882,902.8812048000.310096632.929747871.04
000000000120000096-NUT COKE-SC 5,6,7(CO-PRODUCT)8,564.0008,564.002,741.28-460.612,280.67163.882,444.552,444.5523476321.9219531657.8820935126.2
000000000120000097-NUT COKE-SC 8,9(CO-PRODUCT)8,909.0008,909.002,692.45-180.62,511.85-52.982,458.872,458.8723987037.0522378071.6521906072.83
OWN NUT COKE20,831.002,856.872,496.592,524.5659511359.2752006362.4552589070.07
000000000120000283-BF Coke(Converted by outside agent)20,670.40020,670.402,692.45-77.842,614.61-22.832,591.782,591.78
000000000120000400-Low Ash Converted Coke3,500.0003,500.002,692.45-459.712,232.74-134.852,097.892,097.89
000000000120000410-High CSR coke4,000.0004,000.002,692.45-402.242,290.21-117.992,172.222,172.22
000000000120000953-HCC-40/WBC-30/JDB-3015,019.64015,019.642,692.45-107.122,585.33-31.422,553.912,553.91
240,331.040240,331.043,330.82217.613,548.4326.783,575.213,575.22
Grand Total2,300,859.4802,300,859.482,012.9912.642,025.63-66.61,959.031,959.02
Bigger furnace : Cost advantage Higher % SinterLower/no Sponge IronCoke rate Coal injectionPurchased metallic consumption
Coal injection rate ( kg/thm )G Fce. blown in 6th Apr05
Sponge & Pig iron consumption trend
COST RESEARCH & STANDARD COSTING SCRAPHM+SCRAP (KG/TCS)HM (KG/TCS)Maximising hot metal ratio
Specific energy consumption (Gcal / CS )G Fce. blown in 6th Apr051 GCal/CS = Rs 274 Cr
FY02=100Saleable steel cost ( Rs / t indexed )G Fce. blown in 6th Apr05
Cumulative inflation
Cost
Real Cost
Saleable steel cost ($/t)
Production & manpower productivity264
5 MT crude steelReduce cost Reduce specific consumptionImprove productivityImprove raw material Improve product mix Tata Steel FY06 Plan
Sinter production (mt)
Ash Clean Coal ( Lakh t )Yield Loss 2%Yield Loss 3.5%Clean Coal Production at West BokaroFY-88
1 t of ash needs1 t of coke 1 t of DRI 0.9 t of flux$ 350 per t of ashClean Coal : Low ash advantage *Exchange Rate: Rs 45/USD
COST RESEARCH & STANDARD COSTING Higher usage of own coal (64%) planned in FY06 (P) against FY05 (54%) to reduce the coal billCoke plant : Change in coal blend ( FY06) *Exchange Rate: Rs 45/USD
5 MT crude steelReduce cost Reduce specific consumptionImprove productivityImprove raw material productivityImprove product mix Tata Steel FY06 Plan
FP market share in domestic marketCold Rolled ProductGalvanized ProductOverall Flat Product DomesticFY06 : 0.4 mtpa capacity addition, domestic HR sales Hot Rolled Product* (Incl. Free Market)
Automotive sales trend Domestic + Export(In 000 MT)FY-05 FY-06 (P)FY-04510648933
Long products product mix improvement
Chart1
0.38718849910.09569368510.21916007820.2979577376
0.33808887310.07149648220.19173965920.3986749854
0.12968470140.06323148780.34746901940.4596147914
0.09509143710.00305781830.28005358650.6217971581
0.03113333060.00000838260.30170297060.6671553162
0.0200.240.74
Semis
FQ/Structurals
Wire rods
Rebars
Sheet1
PERFORMANCE ALL INDIA
Apr - Mar
PRODUCT CATEGORYFY01FY02FY03FY04FY05
QtyNRQtyNRQtyNRQtyNRQtyNR
FQ Cr C/Mn230031641731560151312297815369101013436
FQ C/Cr, C/Cr//Mo298711869335634185883767318644142420207
FQ Cr/Ni/Mo7530208145948182404582206483314043
FQ STEEL6040318091731421706865233176312467173526.7546.754
CHQ WIRE ROD454421886831200283020145696837195109460.3655492649460.3724899796
HC WIRE ROD458881365571582135951745941366111829316971120541.291179392120541.379616019
LC WIRE ROD77435131058430413094108559135539595416571115105.657854658115105.742303364
SPECIAL STEEL SEMIS45448972744489103903777510847430721338016573.366716893562.7416573.3788761513
LONG SPECIALITY23371914015274349138673891821403026415616306261681261680.873285514
MS WIRE ROD958141226843887124157469212850111401558421296.408496253721296.4241206302
STRUCTURAL3726410430166013638436181936810323
TISCON CRS292851226918655123382531413392213131688218904.50166344818904.5155329722
TISCON27481911702398451118804520211225349428815158570193.642509685570194.060839384
SECONDS LONG369909253206409458196829873116891269310917.364206883610917.3722165444
DEFECTIVES000000
LONG COMMODITY47417311560483293118495721461230453849915181621312621312.372709531
TOTAL LONG PRODUCT70789112371757642125809613281300380265515551882993882993.245995045
TESTED SEMIS312738914628859093127722810299240901280800
CC SLABS00000000
TOTAL SEMIS312738914628859093127722810299240901280800
TOTAL10206291138310462321167810385551280282921215477882999883000883000
0
Product gradetonnageFy'01%tonnageFY'02%tonnageFy'03%tonnageFy'04%tonnageFy'05%tonnageFy'06%
Wire rods22368122%20060419%36086635%23222428%26640430%25664924%
Rebars30410430%41710640%47733546%51560262%58909867%79499974%
FQ/Structurals9766810%748027%656696%25360%70%00%
Semis39517639%35371934%13468513%7885110%274913%250002%
total domestic1020629100%1046232100%1038555100%829212100%882999100%1076648100%
00000
Wire rodsRebarsFQ/StructuralsSemis
Fy'0122%30%10%39%
Fy'0219%40%7%34%
Fy'0335%46%6%13%
Fy'0428%62%0%10%
Fy'0530%67%0%3%
Fy'0624%74%0%2%
Sheet1
0000
0000
0000
0000
0000
0000
Semis
FQ/Structurals
Wire rods
Rebars
Sheet2
2001MarginNRMargin % NR
HCWR40161365529%
LCWR43361310533%
Tiscon Proj31501171327%
Tiscon Retail41501193135%
FQ164180911%
Structurals28001043027%
MSWR41681226834%
1021 KT
1046 KT
1039 KT
829 KT
883 KT
Sheet3
Global leader & World class Maintain low cost advantageTata Steel Future Plan
NatSteel integration 1 mtpa + 2 mtpa expansion at Jamshedpur6 mtpa green field project in Kalinganagar, Orissa12 mt greenfiled project in Jharkhand5 mtpa green field project in Chhattisgarh Iran : Iron ore, pellets & steel Green field project in BangladeshPort infrastructure in Dhamra, OrissaCoke Project in Haldia Ferro Chrome project in South AfricaTitania project in Tamil NaduMedium term growth plans
Strong base in India De-integrated dispersal of facilities in select geographiesPrimary steel making in countries rich in Iron ore and / or coal / gas (low cost regions)Finishing facilities in growing marketsOwnership and development of raw material sources Access to captive ports and other dedicated logistics facilitiesSize of 20 - 25 mtpa by 2015More from Steel via branding and presence in high entry barrier segmentsTata Steel future strategy
Thank You !
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