Tata Steel : Commitment to Excellence

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Tata Steel Commitment to Excellence
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1 MTPA expansion

• New SP 3 2 mtpa
• G BF Upgradation from 1.24 to 1.8 mtpa,
  increase coal injection
• Fourth stove at G BF
• Augmentation of pulverized coal injection for F
  D BF

Iron making
Steel making
Casting
Rolling
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1 MTPA expansion
Iron making

• LD1, Two Billet casters
• Capacity from 1.5 to 1.8 mtpa
• One caster to cast larger sections
• LD2, Three slab casters
• Capacity from 2.7 to 3.2 mtpa

Steel making
Casting

• HSM capacity from 2.6 to 3.1 mtpa
• New Rebar mill of 0.6 mtpa

Rolling
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1 mtpa expansion Balancing facilities
utilities

• Bedding blending yard capacity from 4 to 7.75
  mtpa
• 6th Lime kiln 425 tpd
• New PH5, Conversion of 7 boilers from coal fired
  to gas fired
• New oxygen plant 720 tpd

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1 mtpa expansion Quality improvement

• 100 Desulphurization
• 2nd ladle furnace in LD1
• One vertical bending caster
• Auto slab scarfing machine
• Auto surface inspection system at HSM
• On line pinch roll polisher

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G Blast Furnace
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Tata Steel FY06 Plan

• 5 MT crude steel
• Reduce cost
• Reduce specific consumption
• Improve productivity
• Improve raw material quality
• Improve product mix

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FY06 Daily crude steel production
103 tpd
5 mtpy 13700 tpd
HSM Shutdown
LD2 Caster 3 shutdown
'G' Fce. Blown in
31st Aug
1st April
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G Fce. Production ( kt / month )
1.8 mtpa 150 kt/month
Blown out for upgradation 3rd Dec04
Jul
May
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Cost comparison F , G vs. A to E
Period Aug05 Indexed (Rs/t)
135
110
100
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Bigger furnace Cost advantage

• Higher Sinter
• Lower/no Sponge Iron
• Coke rate
• Coal injection
• Purchased metallic consumption

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Coal injection rate ( kg/thm )
G Fce. blown in 6th Apr05
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Sponge Pig iron consumption trend
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Maximising hot metal ratio
HMSCRAP (KG/TCS)
SCRAP
HM (KG/TCS)
COST RESEARCH STANDARD COSTING
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Specific energy consumption (Gcal / CS )
1 GCal/CS Rs 274 Cr
G Fce. blown in 6th Apr05
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Saleable steel cost ( Rs / t indexed )
FY02100
G Fce. blown in 6th Apr05
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Production manpower productivity
264
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Tata Steel FY06 Plan

• 5 MT crude steel
• Reduce cost
• Reduce specific consumption
• Improve productivity
• Improve raw material
• Improve product mix

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Sinter production (mt)
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Clean Coal Production at West Bokaro
Clean Coal ( Lakh t )
Ash
Yield Loss 3.5
Yield Loss 2
FY-88
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Clean Coal Low ash advantage

• 1 t of ash needs
• 1 t of coke
• 1 t of DRI
• 0.9 t of flux
• 350 per t of ash

Exchange Rate Rs 45/USD
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Coke plant Change in coal blend ( FY06)

• Higher usage of own coal (64) planned in FY06
  (P) against FY05 (54) to reduce the coal bill

COST RESEARCH STANDARD COSTING
Exchange Rate Rs 45/USD
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Tata Steel FY06 Plan

• 5 MT crude steel
• Reduce cost
• Reduce specific consumption
• Improve productivity
• Improve raw material productivity
• Improve product mix

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FP market share in domestic market
Overall Flat Product Domestic
Hot Rolled Product (Incl. Free Market)
Cold Rolled Product
Galvanized Product
FY06 0.4 mtpa capacity addition, domestic HR
sales
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Automotive sales trend Domestic Export
933
(In 000 MT)
648
510
FY-05
FY-06 (P)
FY-04
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Long products product mix improvement
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Tata Steel Future Plan

• Global leader World class
• Maintain low cost advantage

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Medium term growth plans

• NatSteel integration
• 1 mtpa 2 mtpa expansion at Jamshedpur
• 6 mtpa green field project in Kalinganagar,
  Orissa
• 12 mt greenfiled project in Jharkhand
• 5 mtpa green field project in Chhattisgarh
• Iran Iron ore, pellets steel
• Green field project in Bangladesh
• Port infrastructure in Dhamra, Orissa
• Coke Project in Haldia
• Ferro Chrome project in South Africa
• Titania project in Tamil Nadu

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Tata Steel future strategy

• Strong base in India
• De-integrated dispersal of facilities in select
  geographies
• Primary steel making in countries rich in Iron
  ore and / or coal / gas (low cost regions)
• Finishing facilities in growing markets
• Ownership and development of raw material sources
  
• Access to captive ports and other dedicated
  logistics facilities
• Size of 20 - 25 mtpa by 2015
• More from Steel via branding and presence in
  high entry barrier segments

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Thank You !