Desk Research Report

"The Steel Industry: A Desk Research Analysis of Tata STEELS"

Submitted By

Khushi Sachin Kothari

First Year

MBA-I (Finance)

Under The Guidance Of Professor Poonam Tiwari

FOR THE PARTIAL FULFILLMENT OF THE DEGREE MASTER IN

BUSINESS ADMINISTRATION

Submitted To

B.P.H.E SOCIETY'S Of Management Studies Career Development And

Research, Ahmednagar

AFFILIATED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

(2024-20

DECLARATION

I, Arora Khushi Rajesh, student of Master of Business Administration from Institute Of

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Management Studies Career Development & Research, Ahmednagar declare that I have given all
original & valid data & information to the best of my knowledge in the desk research
project report under the guidance of Mrs. Poonam Tiwari Ma’am. I have prepared this report
independently and I have gathered all the relevant information personally. I have prepared this project
for partial fulfilment of MBA.

Date – 10th March 2025 Arora Khushi Rajesh

Place – Ahmednagar (MBA-I)

ACKNOWLEDGEMENT
I take this opportunity to express my sincere gratitude to everyone who has contributed to the
Successful completion of this MBA Desk Research Report titled “ The Steel Industry : A Desk
Research Analysis of TATA STEEL “

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This Report has not only widened my horizon as far as academies are concerned but also helped me to
enhance my knowledge. There are many people associated with this project without which this project
would not have been possible.

It is proud privilege to express our sincere gratitude to Dr. M. B. Mehta (Director, IMS
Ahmednagar) and Dr. Pronoti Telore (Head Of The Management, IMS Ahmednagar) for encouraging
and words of wisdom during report work;

We are thankful to our research guide Professor Poonam Tiwari for his valuable guidance, advice and
encouragement during the research work.

Dr. Pronoti Telore Prof. Poonam Tiwari

Head of Department (HOD, IMS) Desk Research Coordinator

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 Index

Chapter Chapter Name Page No.

No.
1. Objectives 5

2. Industry Analysis 6

3. Leadership, Governance and Ethos 13

4. Macro / External Environment 17

5. Financial Analysis 19

6. Market Analysis 22

7. Current Trends of the Industry 24

8. Conclusion 29

9. References 30

Objectives

• Understand the role of the steel industry in supporting infrastructure, construction,

manufacturing, and transportation.
• Analyze Tata Steel’s position in the global and Indian steel market.
• Study the different production methods used in the steel industry, including integrated steel
plants and mini-mills.
• Identify the major players in the Indian steel sector and their market share.
• Examine factors affecting the demand and supply of steel in India and globally.
• Explore Tata Steel’s leadership structure, governance, and corporate ethics.
• Evaluate Tata Steel’s CSR initiatives, including education, healthcare, and environmental
sustainability.
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• Assess the financial performance of Tata Steel based on revenue, expenses, and profit trends.
• Understand recent technological advancements in steel production, including green steel and
digital transformation.
• Analyze major mergers, acquisitions, and strategic business decisions of Tata Steel.
• Study challenges faced by Tata Steel, including competition, labor unrest, and global trade
issues.
• Predict the future trends in the steel industry and Tata Steel’s potential strategies for growth.

Basic Of The Steel Industry

A. Introduction :
The steel industry is a key sector that supports infrastructure, construction, manufacturing, and
transportation. Steel, an alloy of iron and carbon, is valued for its strength and versatility. The
industry operates through integrated steel plants (ISPs), which use raw materials, and mini-mills,
which recycle scrap steel. Major producers include China, India, Japan, the U.S., and Russia.
Being capital-intensive, the industry relies on advanced technology and government policies.
With growing demand and a shift towards sustainable production, steel remains essential for
global economic development. B. Nature :

• Capital-Intensive Industry – Requires heavy investments in machinery, infrastructure, and

energy.
• Raw Material Dependent – Relies on iron ore, coal, and limestone for steel production.

• Production Methods – Includes integrated steel plants (ISPs) (using raw materials) and mini-
mills (recycling scrap steel).
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 • Energy-Intensive – High power consumption is needed for smelting and processing.
• Technology-Driven – Advances in automation, digitalization, and sustainable practices are
shaping the industry.

C. Scope :
• Infrastructure & Construction – Used in roads, bridges, buildings, and urban development.

• Automobile & Transportation – Essential for cars, railways, shipbuilding, and aerospace
industries.

• Manufacturing & Machinery – Supports industrial equipment, tools, and heavy machinery.

• Sustainability & Green Steel – Growing focus on eco-friendly production to reduce carbon
emissions

• Economic Growth & Urbanization – Steel is crucial for industrialization and the expansion of
cities.

Classification of Players
A. Leaders (Market Dominators) :
These companies are the top steel producers in India, with high production capacity, strong
financial performance, and a global presence.

1. Tata Steel – Established in 1907, Tata Steel is India's oldest steel company and one of the top
global producers. It operates integrated steel plants in Jamshedpur and Kalinganagar, focusing
on automotive, construction, and value-added steel products.
It has a strong presence in Europe and Southeast Asia.
2. JSW Steel – A part of the JSW Group, it is one of India's largest private steel companies,
known for its high-quality steel used in infrastructure, automobiles, and consumer goods. It
has plants in Karnataka, Maharashtra, and Tamil Nadu and is rapidly expanding globally.
3. Steel Authority of India Limited (SAIL) – A government-owned company and one of
India's largest steelmakers, SAIL operates major steel plants in Bhilai, Rourkela, Durgapur,
and Bokaro. It supplies steel for defense, railways, and large infrastructure projects.

B. Challengers (Growing Companies) :

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These companies are expanding their production capacity and market reach, competing with industry
leaders.

1. Rashtriya Ispat Nigam Limited (RINL/Vizag Steel) – A government-owned enterprise based

in Visakhapatnam, specializing in long products like TMT bars, wire rods, and structural steel.
2. Electrosteel Steels (Now part of Vedanta Group) – Focuses on specialized steel products,
including ductile iron pipes and high-grade steel, catering to construction and water
management sectors.
3. Essar Steel (Now AM/NS India) – Once a leading private steel company, it faced financial
distress and was acquired by ArcelorMittal and Nippon Steel. It operates one of India’s most
modern steel plants in Gujarat.

C. Followers (Small & Regional Players) :

These companies cater to regional markets and specific steel product segments, playing a crucial role
in the supply chain.

1. Mesco Steel – A mid-sized steel company based in Odisha, primarily producing pig iron and
long products used in construction and railway infrastructure.
2. Godawari Power & Ispat Ltd. (GPIL) – Specializes in sponge iron, billets, and ferroalloys,
supporting mid-sized steel plants and foundries in India.
3. Shyam Steel – A major producer of TMT bars, focusing on construction and real estate
sectors, mainly in Eastern and Northern India.

D. Sick Players (Struggling Companies) :

These companies have faced financial crises due to high debt, market fluctuations, or poor
management and have either been acquired or are undergoing restructuring.

1. Bhushan Steel – Once a leading producer of high-end steel products, it faced insolvency due
to high debt and was acquired by Tata Steel in 2018 (now called Tata Steel BSL).
2. Essar Steel – Faced bankruptcy due to financial mismanagement and was acquired by
ArcelorMittal & Nippon Steel, which rebranded it as AM/NS India.
3. Electrosteel Steels – Struggled financially and was taken over by the Vedanta Group, which
is now reviving its operations.

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E. Emerging Players & Startups :
These companies focus on sustainable steel production, green energy, and technological innovations in
the industry.

1. Tata Steel’s Green Steel Initiative – Investing in low-carbon and hydrogen-based steel
production to make operations more sustainable.
2. Jindal Stainless Limited (JSL) – Expanding its focus on eco-friendly and high-end stainless
steel products.
3. New startups in recycled steel and alternative materials – Various startups are emerging in
steel recycling and green steel production to reduce waste and emissions.

Domestic Geographical Spread of TATA Steel

JSW Steel, one of India's leading steel producers, has a strong domestic presence with multiple
manufacturing facilities across different states. The company operates integrated steel plants, rolling
mills, and processing centers to cater to the growing demand for steel in
India.

Tata Steel has a strong domestic presence in India with operations spread across multiple
states. Its key geographic spread includes:

A. Key Manufacturing Locations:

1. Jamshedpur, Jharkhand – Tata Steel’s flagship plant and one of the largest integrated steel
plants in India.

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 2. Kalinganagar, Odisha – A modern steel plant with advanced technology.
3. Meramandali, Odisha – Previously Bhushan Steel, now part of Tata Steel.
4. Jharia, Jharkhand – Coke plant to support steelmaking operations.
5. Dhenkanal, Odisha – Major steel production hub under Tata Steel BSL.
6. Pune, Maharashtra – Automotive steel processing center.
7. Faridabad, Haryana – Steel service center.
8. Pantnagar, Uttarakhand – Steel tube manufacturing unit.
9. Bhubaneswar, Odisha – Advanced materials research facility.

Key Factors Affecting Demand and Supply in

the Steel Industry
A. Factors Affecting Demand :
1. Infrastructure & Construction Growth – High demand from roads, bridges, railways, and
urban development.
2. Industrial & Manufacturing Activity – Growth in machinery, appliances, and equipment
increases steel consumption.
3. Real Estate Sector – Housing and commercial building construction drive steel demand.
4. Export Market & Global Demand – International demand affects production and pricing.

B. Factors Affecting Supply :

1. Availability of Raw Materials – Iron ore, coal, and scrap steel availability impact
production.
2. Energy & Fuel Costs – High electricity and fuel costs can limit supply.
3. Labor Availability & Costs – Workforce availability and strikes affect production.
4. Logistics & Transportation – Efficient transport of raw materials and finished steel is
crucial.

C. Online Business Activities :

1. Fleet Verse : Fleet Verse is an online fleet management platform that optimizes transportation
for steel and heavy goods. It provides:

• Real-time tracking of shipments for efficient logistics.

• Optimized route planning to reduce transportation costs.
• Automated scheduling for timely fleet operations.

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 2. Click to Drive : Click to Drive is a digital platform for buying and selling commercial vehicles,
including those used in steel logistics. It offers:

• Online vehicle booking for commercial transport.

• Financing and insurance options for fleet buyers5.
• Digital documentation for smooth transactions.

Market Share Of Top 5 And Bottom 5 Players

A. Top 5 Steel Companies in India by Market Share (2023-24) :

Rank Company Name Estimated Market Share (%)

1. JSW Steel Limited 17%

2. Tata Steel Limited 15%

3. Steel Authority of India Ltd 14%

(SAIL)
4. Jindal Steel & Power Ltd 9%
(JSPL)
5. ArcelorMittal Nippon Steel 5%
India (AM/NS India)

B. Bottom 5 Steel Companies in India by Market Share (2023-

24) :
Rank Company Name Estimated Market Share (%)

1. Usha Martin Limited 0.5%

2. Electrosteel Steels Limited 0.4%

3. Shyam Steel Industries Ltd. 0.3%

4. Kamdhenu Limited 0.2%

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5. MESCO Steel 0.1%
 Industry Analysis

Tata Steel, a leading global steel manufacturer, operates in 26 countries, including major facilities in
India, the Netherlands, and the UK. The company serves diverse industries such as automotive,
construction, engineering, and defense. However, it faces challenges, particularly in its European
operations. In the UK, the company is transitioning from traditional blast furnaces to electric arc
furnaces with a £500 million government subsidy, a move aimed at reducing carbon emissions but
expected to result in significant job losses. This transition aligns with global efforts toward cleaner
steel production, although the UK lags behind countries like Germany and Sweden in green steel
investments.

Additionally, the global steel industry is under pressure due to cheap Chinese steel imports, which
threaten domestic markets. Tata Steel's CEO has raised concerns that prolonged imports of
underpriced Chinese steel could impact investments in the Indian steel sector, despite strong local
demand. In response, the Indian government has launched anti-dumping investigations into steel
imports from countries like Vietnam.

To remain competitive, Tata Steel is investing in sustainable technologies such as electric arc
furnaces, which are expected to cut emissions by 75% once operational in 2027. However, these
furnaces primarily recycle scrap steel, raising concerns about the UK's ability to produce high-quality
virgin steel. The UK government is also exploring future technologies, including direct reduced iron
(DRI) with green hydrogen, to modernize the industry.

Leadership, Governance & Ethos

Top Level Management Of Tata Steels :

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1. T. V. Narendran – Chief Executive Officer & Managing Director

• T. V. Narendran serves as the CEO & MD of Tata Steel. He has been associated with the
company for over three decades, holding various leadership positions across multiple
geographies.
• His extensive experience spans marketing and sales, operations, and general management.
• Narendran played a pivotal role in the company's growth and expansion, particularly in the
Indian and Southeast Asian markets.
• He is also actively involved in various industry forums and has been instrumental in shaping
policies related to the steel industry.

2. Koushik Chatterjee – Executive Director and Chief

Financial Officer

• Koushik Chatterjee is the Executive Director and CFO of Tata Steel. Joining the company in
1995, he has held several key positions, including Vice President of Finance.
• Chatterjee oversees the company's financial strategy, risk management, and investor relations.
• He has been recognized for his contributions to finance and has played a significant role in
various mergers and acquisitions, contributing to Tata Steel's global footprint.

3. Anand Sen – President, Total Quality Management and Steel

Business

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• Anand Sen serves as the President of Total Quality Management and Steel Business at Tata
Steel.
• Since joining the company in 1981, he has held various positions in marketing, manufacturing,
and quality assurance.
• Sen is responsible for driving excellence in quality management and oversees the steel
business's operational aspects.
• His leadership has been crucial in implementing best practices and maintaining highquality
standards across the company's operations.

4. Atrayee Sanyal – Vice President, Human Resource

Management

• Atrayee Sanyal is the Vice President of Human Resource Management at Tata Steel.
• With a career spanning over two decades in the company, she has experience in various facets of
human resources, including talent management, organizational development, and employee
relations.
• Sanyal plays a key role in shaping the company's HR policies and fostering a culture of
inclusivity and continuous learning.

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 CSR Policy Of Tata Steels

Key Pillars of Tata Steel's CSR Initiatives:

1. Education:
• Initiatives like 'Masti ki Paathshala' aim to eradicate child labor by providing marginalized
children with education and a safe environment.
• The Education Signature Programme focuses on universalizing elementary education by
enhancing access, learning, and governance in government schools.
2. Healthcare:
• Tata Steel enhances healthcare services by deploying mobile medical units and organizing
health camps, improving health and hygiene outcomes in communities around its operational
areas.
3. Livelihood and Rural Development:
• Projects like the Jamshedpur-Kalinganagar Development Corridor and agriculturebased
initiatives aim to increase farmers' incomes through improved farming practices, value
addition, and better infrastructure.
4. Environmental Sustainability:
• The company undertakes afforestation drives, renewable energy projects, water conservation
programs, and waste management initiatives, aligning with their commitment to combat
climate change and contribute to a greener future.
5. Empowerment of Women and Youth:
• Programs focus on realizing individual potential to make communities more resilient and
equitable.

Tata Steel's CSR policy ensures that at least 2% of its average net profit before taxes for each of the
last three years is earmarked for CSR activities, aligning with the Tata Group's mission to improve
the quality of life for communities it serves.

The company's CSR governance involves a multi-tier structure, leveraging the CSR & Sustainability
Committee and collaborating with credible organizations to ensure impactful outcomes.

Initiatives regarding Corporate Governance

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Tata Steel follows strong ethical business practices, transparency, and accountability. Some key
initiatives include:

• Tata Code of Conduct (TCoC): Ethical framework ensuring fair business practices.
• Diversity & Inclusion Policies: Programs like ‘Women@TataSteel’ to promote gender
diversity.
• Independent Board & ESG Integration: Ensures sustainability in business decisions.
• Whistleblower Policy: Encourages reporting of unethical activities. • Supplier Code of
Conduct: Ensures fair and ethical supply chain management.

Environmental Conservation Initiatives

Tata Steel has several sustainability-driven initiatives to minimize environmental impact:
• Carbon Neutrality Goal (by 2045): Commitment to reduce carbon emissions through green
steelmaking.
• Water Conservation: Zero liquid discharge plants and rainwater harvesting.
• Renewable Energy Use: Investing in solar and wind energy projects.
• Waste Management: ‘Steel Recycling Business’ promotes circular economy.
• Afforestation & Biodiversity Conservation: Large-scale tree plantation and conservation
programs.
• Responsible Mining Practices: Use of sustainable mining techniques and land reclamation.

Social Inclusion Initiatives

Tata Steel works extensively in community development, education, healthcare, and skill
development:

• Education Initiatives:

• Jyoti Fellowship: Scholarships for SC/ST students.

• Vidyadhanam: Digital learning for rural students.

• Healthcare Programs:
• Tata Steel Rural Development Society (TSRDS) provides healthcare in remote areas.
• Tata Steel integrates sustainability
• Social responsibility into its core business, ensuring long-term impact.

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 External Enviroment Controlling
Ministry for Steel Industry

The Ministry of Steel is the central authority responsible for the planning and development of the iron
and steel industry in India. Its key functions include:
1. Policy Formulation: Developing policies related to production, pricing, distribution, import,
and export of iron, steel, and ferro alloys.
2. Environmental Management: Promoting energy efficiency and environmental management
within the iron and steel sector, in coordination with the Ministry of Environment, Forest and
Climate Change (MoEF&CC).

Regulatory Policies
1. National Level:
• Production Linked Incentive (PLI) Scheme for Specialty Steel: Introduced to promote the
manufacturing of specialty steel within the country, the scheme anticipates an additional
investment of approximately ₹29,500 crores and the creation of around 25 million tonnes of
specialty steel capacity.
• Domestically Manufactured Iron & Steel Products (DMI&SP) Policy: This policy
mandates preference to domestically manufactured iron and steel products in government
procurement, aiming to boost local manufacturing and reduce import dependency.

2. State Level:

• Environmental Clearances: Ensuring that new and expanding steel plants comply with
environmental regulations as stipulated under the Environment Protection Act (EPA) and related
rules enacted by the MoEF&CC.
• Infrastructure Development: Providing necessary infrastructure support such as land
allocation, water supply, and transportation facilities to support the establishment and expansion
of steel plants.

3. Global Level :

• World Steel Association (worldsteel): Serving as a prominent international trade body,

worldsteel represents approximately 85% of global steel production. It focuses on promoting the
steel industry, and addressing environmental challenges through initiatives like climate action
programs.
• Global Government Support: Governments worldwide are supporting the decarbonization of
the steel sector through funding, policy initiatives, and research.

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Key Domestic Factors Affecting Steel Industry
The Indian steel industry is influenced by various domestic factors and government initiatives aimed
at promoting growth and sustainability.

1. Import Restrictions: The Indian government has imposed restrictions on imports of certain
steel products to protect domestic manufacturers. For instance, limitations on low-ash
metallurgical coke imports have raised concerns among major producers like ArcelorMittal
Nippon Steel India, which relies on high-quality coke for steel production. These restrictions
could lead to reduced production and delays in expansion plans.
2. Global Trade Dynamics: U.S. tariffs on steel and aluminum imports have altered global
trade patterns, leading to an influx of cheaper steel into India from countries like China, South
Korea, and Japan. This increased supply has pressured domestic prices, challenging local
steelmakers.
3. Domestic Demand Fluctuations: Slowdowns in construction activity and delays in
government infrastructure projects have weakened domestic steel demand. This, coupled with
rising imports, has impacted the profitability of companies like JSW
Steel, which reported a significant drop in third-quarter profits due to lower prices and
subdued demand.

Government Initiatives to Promote Steel

Industry

1. Domestically Manufactured Iron & Steel Products (DMI&SP) Policy: This policy
mandates preference for domestically produced iron and steel in government procurement,
encouraging local manufacturing and reducing reliance on imports.
2. Production-Linked Incentive (PLI) Scheme for Specialty Steel: The government has
introduced a PLI scheme to boost the production of specialty steel within the country. This
scheme aims to attract significant investments, enhance capacity, and generate employment in
the sector.
3. Green Steel Mission: With an estimated outlay of ₹15,000 crore, this mission seeks to help
the steel industry reduce carbon emissions. It includes incentives for adopting renewable
energy and mandates for government agencies to purchase green steel, promoting
environmental sustainability.
4. Skill Development Initiatives: The National Policy on Skill Development focuses on
creating a skilled workforce to meet industry requirements, including the steel sector. This
policy aims to enhance employability and productivity through targeted training programs.

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 Financial Aspects
Income Statements

Here's a
Particulars (₹ in FY 2024 FY 2023 FY 2022 FY 2021 FY 2020
Crores)
Revenue from 2,41,636.25 1,54,719.28 1,57,669.02
2,27,296.20 2,42,326.87
Operations
Other Income 1,808.85 1,037.48 784.89 895.60 1,222.94

Total Revenue 2,44,390.17 2,44,744.06 1,57,373.00 1,58,891.96

2,30,979.05

Total Expenses 2,24,254.61 2,26,686.43 1,95,032.29 1,42,813.49 1,48,153.29

Profit Before Tax -1,089.06 17,817.00 49,577.71 13,516.35 10,738.67

(PBT)
Net Profit After -4,910.00 8,075.00 41,749.00 9,098.00
8,190.00
Tax (PAT)
Earnings Per -3.56 7.17 328.81 62.27 99.89
Share (EPS)
consolidated overview of Tata Steel's income statement from fiscal years 2019 to
2024:

Particulars (₹ in FY 2024 FY 2023 FY 2022 FY 2021 FY 2020

Crores)
Share Capital 1,248.60 1,222.40 1,222.37 1,198.78 1,146.13
Equity - 25,516.50 1,750.00 1,750.00 1,750.00 1,750.00
Authorised
Equity - Issued 1,249.64 1,223.44 1,223.44 1,205.22 1,205.22
Equity - Paid Up 1,248.35 1,222.15 1,222.17 1,198.58 1,145.93
Total Reserves 1,36,445.05 1,35,386.48 1,24,211.39 93,207.56 73,416.99
Shareholder's 1,37,693.65 1,36,608.88 1,25,433.76 94,410.12 74,563.12
Funds

Balance Sheet

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Long Term 0.00 0.00 0.00 0.00 0.00
Borrowings
Short Term 0.00 1,003.45 9,128.92 315.80 7,857.27
Borrowings

Secured Loans

- Bank Term Loan 0.00 687.92 0.00 6,949.03 0.00

- Institution Term 0.00 0.00 0.00 0.00 0.00
Loan
- Other 2,829.25 2,751.17 2,714.29 2,677.40 5,575.11

Unsecured Loans

- Bank Loans 21,733.38 18,004.50 6,676.90 8,351.38 13,239.78

- Government 0.00 0.00 0.00 0.00 0.00
Loans
- Other Loans 0.00 0.00 0.00 0.00 0.00

Deferred Tax Assets

- Deferred Tax 6,553.19 6,564.80 6,676.06 5,948.93 5,220.70

Assets

Deferred Tax
Liability
- Deferred Tax 14,569.96 15,073.13 14,763.63 14,466.71 11,082.98
Liability
Total Non-Current 57,300.01 54,295.42 42,887.63 56,013.21 44,958.14
Liabilities
Total Current 50,640.40 51,791.43 53,664.83 30,067.60 30,871.30
Liabilities
Total Liabilities 2,45,634.06 2,42,695.73 2,21,986.22 1,80,490.93 1,50,392.56
Total Non-Current 2,08,869.15 2,02,115.02 1,90,696.65 1,51,216.53 1,30,383.37
Assets
Total Current 36,764.91 40,515.33 31,289.57 28,890.78 19,959.03
Assets
Total Assets 2,45,634.06 2,42,695.73 2,21,986.22 1,80,490.93 1,50,392.56
Total Debt 40,557.43 38,866.93 32,275.47 33,305.09 43,697.87
Contingent 42,472.02 36,375.67 31,783.19 29,526.56 26,660.35
Liabilities
Book Value (₹) 10.90 11.12 101.93 78.53 65.23

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 Financial Analysis
Here's a table summarizing the financial performance of Tata Steel for the fiscal year ending March
31, 2024, based on available data:
Financial Metric FY 2023-24

Earnings Per Share (₹) 3.85

Dividend Per Share (₹) 3.60

Book Value per Share (₹) 108.32

Current Ratio 0.7

Debt to Equity Ratio 0.28

Price-to-Earnings (P/E) Ratio 65.95

Price-to-Book (P/B) Ratio 1.90

Recent Developments & Challenges of Industry

Major mergers, acquisitions & alliances in past

years (2018-19 to 2022-23)
1.Attempted Joint Venture with thyssenkrupp (2018-2019):

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 • In June 2018, Tata Steel and thyssenkrupp AG signed definitive agreements to merge their
European steel operations into a 50/50 joint venture named thyssenkrupp Tata Steel BV.
• This initiative aimed to create a leading European flat steel producer.
• However, in 2019, the European Commission blocked the merger due to concerns over reduced
competition and potential price increases for consumers.

2.Amalgamation of Strategic Businesses (2022-2024):

As part of its strategy to simplify its business portfolio, Tata Steel announced in September 2022 the
intent to amalgamate nine strategic businesses. By February 2024, five of these mergers were
completed:

• Tata Steel Mining Limited: Merged effective September 1, 2023, with an annual turnover of
₹5,000 crore in FY23.
• Tata Steel Long Products Limited: Merged effective November 15, 2023, with an annual
turnover of ₹7,464 crore in FY23.
• S&T Mining Company Limited: Merged effective December 1, 2023.
• The Tinplate Company of India Limited: Merged effective January 15, 2024, with an annual
turnover of ₹3,983 crore in FY23.
• Tata Metaliks Limited: Merged effective February 1, 2024, with an annual turnover of ₹3,260
crore in FY23.

These mergers, totaling an annual turnover of approximately ₹19,700 crore in FY23, aim to
consolidate downstream operations and enhance value-added segments by leveraging Tata Steel’s
extensive marketing and sales network.
3.Business Cooperation Agreement with A&B Global Mining
(2023):

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 • In April 2023, Tata Steel entered into a business cooperation agreement with A&B Global
Mining Pvt. Ltd. (ABGM).
• This partnership focuses on exploring new business development opportunities and delivering
mine technical services, including exploration, resource evaluation, mine planning,
digitalization, and clean energy solutions.
• The collaboration aims to provide integrated business solutions to the global mining industry.

These strategic initiatives reflect Tata Steel's efforts to strengthen its position in the global steel industry
through consolidation, strategic partnerships, and operational efficiency.

Key technological developments advancements

TATA Steels
Tata Steel has been at the forefront of technological advancements in the steel industry, focusing on
sustainability, digital transformation, and innovative manufacturing processes.

1. Sustainable Steel Production : • Hydrogen Injection in Blast Furnaces:

- In a pioneering effort to reduce carbon emissions, Tata Steel conducted a successful trial at its
Jamshedpur Works, injecting hydrogen gas into one of its blast furnaces.

22
 -
This trial demonstrated the potential to reduce coke usage by 10%, leading to a 7-10% decrease
in CO₂ emissions per ton of crude steel produced.
• HIsarna Ironmaking Process:
- Tata Steel has developed the HIsarna process, which allows for the direct conversion of iron ore
into liquid iron without the need for preprocessing into sinter or pellets.
- This method is more energy-efficient and has a lower carbon footprint compared to traditional
processes.
• Electric Arc Furnace Installation:
- As part of its decarbonization strategy, Tata Steel has signed a contract with Tenova to install an
electric arc furnace at its Port Talbot plant in Wales.
- This furnace will produce steel from scrap, aiming to reduce carbon emissions by 90%,
equivalent to 5 million tonnes of CO₂ annually.

2. Digital Transformation :
• Industry 4.0 Adoption:
-
Since 2016, Tata Steel has embraced Industry 4.0, establishing a Digital Value Assessment Team
to align business and technology initiatives.
- This approach has fostered a technology-first mindset across the organization.
• Digital Twin Technology:
- The company is investing in digital twin technology, creating simulated digital replicas of its
factories through real-time analytics.
- This initiative aims to develop data-driven "smart factories," enhancing operational efficiency
and agility. • Virtual Reality (VR) in Training:
- Collaborating with Steel Sim VR and Varjo, Tata Steel is utilizing VR to revolutionize industrial
training, promoting a safer and more efficient future for steel production.

3. Innovative Products and Materials :

• Advanced Automotive Steel:
- Tata Steel has developed Hyperform® automotive steel, which offers high strength (800 MPa)
and is over 20% lighter, supporting the automotive industry's efforts to reduce CO₂ emissions
without compromising safety.
• Alternative Materials:
- The company is exploring materials beyond traditional steel, such as Fiber Reinforced Polymers
and Graphene.
- These materials are lightweight, corrosion-resistant, and have applications ranging from electric
vehicles to medical equipment.

Labour Unrest And Conflicts Within The Industry

TATA Steel
Tata Steel has experienced several instances of labor unrest and industrial conflicts, particularly
concerning its European operations.

1. Transition to Greener Steel Production in the UK

• In recent years, Tata Steel's initiative to transition from traditional blast furnaces to electric arc
furnace (EAF) technology at its Port Talbot plant in South Wales has been a significant source
of labor unrest.
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• This transition aims to reduce carbon emissions but has substantial implications for employment
due to the higher automation and lower labor requirements of EAF technology.
• In September 2023, the UK government agreed to provide £500 million to support Tata's
investment in EAF technology.
• Despite this support, Tata announced in January 2024 the closure of both blast furnaces, putting
approximately 3,000 jobs at risk.
• Trade unions expressed concerns over the potential job losses and proposed keeping one blast
furnace operational until 2032 to mitigate the impact, but this proposal was rejected by Tata.

2. Job Cuts in Europe :

• In 2019, Tata Steel announced plans to cut 3,000 jobs across its European operations, including
the UK and the Netherlands, citing challenges such as surplus capacity and high costs.
• This decision led to tensions with labor unions, who sought discussions to address the potential
impact on workers.

3. Industrial Accidents :
• The company has also faced industrial conflicts arising from workplace safety concerns.
Notably, in July 2012, Tata Steel was fined £500,000 following the death of a worker, Kevin
Downey, at the Port Talbot plant in 2006.
• The incident highlighted significant safety lapses and contributed to strained relations between
the workforce and management.

Corporate Wars And Disputes Within The Industry

TATA Steels
Tata Steel, one of the largest steel manufacturers globally, has been involved in several corporate
disputes and industry challenges over the years. Here’s a look at some notable corporate wars and
disputes within the industry related to Tata Steel:

1. Corus Acquisition Battle (2007)

• Tata Steel entered a bidding war against Brazilian company Companhia Siderúrgica Nacional
(CSN) to acquire Corus, a major European steelmaker.
• The deal escalated into an intense takeover battle, with Tata Steel eventually winning by
offering $12.1 billion, making it one of India's biggest overseas acquisitions.
• However, the acquisition later faced financial strain due to rising costs and global economic
downturns.
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 2. Competition With ArcelorMittal
• ArcelorMittal, led by Lakshmi Mittal, has been a long-time competitor of Tata Steel in the
global and Indian markets.
• Both companies have competed for market dominance, especially in the European steel sector
and raw material resources.

3. Tata Steel vs. Bhushan Steel Takeover (2018)

• Tata Steel was in a race with JSW Steel and Liberty House to acquire Bhushan Steel, a debt-
ridden company under India's insolvency resolution process. • Tata Steel won the bid with a
₹35,200 crore ($4.8 billion) deal, strengthening its position in the Indian steel industry.

4. UK Operations and Union Disputes

• Tata Steel's UK operations have faced multiple challenges, including labor union disputes,
pension issues, and restructuring.
• In 2016, the company considered selling its Port Talbot steel plant, one of the largest in the
UK, but later retained it after negotiations.
• Recent talks with the UK government over a £500 million bailout package for the struggling
plant have also led to discussions with labor unions.

5. Exit from European Operations

• Tata Steel has been trying to exit loss-making European operations, including attempts to
merge with Thyssenkrupp (Germany) in 2019, but the deal was blocked by EU regulators
over competition concerns.
• In 2024, Tata Steel announced restructuring in the UK, including job cuts and transition to

greener technology, causing tensions with the workforce

Future Scenario of the Steel Industry

The future of the steel industry is poised for transformation, driven by sustainability, technological
advancements, and evolving market demands. One of the most significant shifts will be the global
push for green steel production. As governments and corporations aim to reduce carbon emissions,
traditional blast furnace methods that rely on coal will face increasing scrutiny. Instead, electric arc
furnaces (EAFs) powered by renewable energy and hydrogen-based direct reduced iron (DRI)
processes are expected to gain traction. This transition will require heavy investments in
infrastructure, but it will open new opportunities for environmentally conscious manufacturers and
create a competitive advantage for early adopters.
Additionally, digitalization and automation will play a crucial role in enhancing efficiency and
reducing costs. Artificial intelligence (AI), machine learning, and the Internet of Things (IoT) will
enable predictive maintenance, real-time monitoring, and optimized production processes. These
advancements will help steel manufacturers minimize waste, improve product quality, and respond

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swiftly to market fluctuations. Moreover, 3D printing and advanced metallurgical research will
contribute to the development of high-strength, lightweight steel alloys, catering to industries such as
aerospace, automotive, and construction.
Global demand for steel will remain strong, particularly in emerging economies where urbanization and
infrastructure development continue to drive consumption. However, geopolitical tensions, trade
policies, and supply chain disruptions could create volatility in the industry. Countries with abundant
access to raw materials and energy-efficient technologies will likely dominate the global market.
Furthermore, recycling and circular economy practices will become integral to the industry's future, as
scrap-based steel production offers both economic and environmental benefits.
In conclusion, the steel industry is set for a dynamic evolution marked by sustainability, digital
transformation, and shifting geopolitical landscapes. Companies that adapt to these changes through
innovation and strategic investments will thrive, while those resistant to transformation may struggle to
remain competitive. The future of steel will be defined not just by production capacity but by
efficiency, environmental responsibility, and technological adaptability.

Future Scenario of TATA Steel

Tata Steel, one of the world’s leading steel manufacturers, is poised for a transformative future driven
by sustainability, digitalization, and global expansion. With increasing emphasis on green steel
production, Tata Steel is expected to invest heavily in carbon-neutral technologies, such as hydrogen-
based steelmaking and electric arc furnaces, to align with global climate commitments. The
company’s recent initiatives in reducing carbon emissions and adopting circular economy principles
will likely position it as a leader in sustainable manufacturing, attracting environmentally conscious
investors and customers.
Technological advancements, including artificial intelligence, automation, and smart manufacturing,
will further enhance Tata Steel’s operational efficiency. The integration of Industry 4.0 technologies
is expected to streamline production, reduce costs, and improve product quality. With global steel
demand fluctuating, especially in infrastructure and electric vehicle sectors, Tata Steel’s strategic
adaptability and digital transformation will be crucial for maintaining a competitive edge.
In terms of global expansion, Tata Steel will likely continue strengthening its presence in high-
growth markets like India and Southeast Asia while optimizing its European operations. Geopolitical
challenges, trade policies, and raw material availability will play a critical role in shaping the
company’s international strategy. If managed effectively, Tata Steel’s vertically integrated supply
chain and diverse product portfolio will allow it to remain resilient against economic uncertainties
and market disruptions.
Ultimately, Tata Steel’s future will be shaped by its ability to balance growth, sustainability, and
innovation. By leveraging its legacy of excellence and embracing future-ready strategies, the
company is well-positioned to lead the global steel industry in an era of rapid industrial and
environmental transformation.

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 Conclusion

• Tata Steel is one of the leading steel companies in India and globally, playing a key role in
infrastructure, manufacturing, and economic growth.
• The company has a strong domestic presence with advanced production facilities and a focus
on high-quality steel products.
• Tata Steel continuously invests in new technologies, including green steel production and
digital transformation, to stay competitive in the evolving market.
• The company follows strong corporate governance, ethical business practices, and corporate
social responsibility (CSR) initiatives to contribute to society.
• Financial performance analysis shows the company’s strengths and challenges, with a focus
on long-term growth and sustainability.
• Tata Steel faces challenges such as global competition, labor unrest, and fluctuations in raw
material prices, but its strategies help overcome these issues.
• The future of Tata Steel looks promising with its focus on innovation, sustainability, and
expansion into emerging markets.
• With increasing demand for steel and government support for the industry, Tata Steel is well-
positioned to remain a market leader in the coming years.

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References
•
• www.tatasteel.com
• en.wikipedia.org trendlyne.com
• https://www.linkedin.com/
• https://www.reuters.com/
www.chatgpt.com

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