INTERNATIONAL FIANANCIAL MANAGEMENT
Submitted BY:-
Shaiki Agarwal
TPS -Finance
18046
TATA STEEL
Backed by 100 glorious years of experience in steel making, Tata Steel is the world‘s 6th largest steel company with an
existing annual crude steel production capacity of 30 Million Tonnes PerAnnum (MTPA). Established in 1907, it is the first
integrated steel plant in Asia and is now the world’s second most geographically diversified steel producer and a Fortune 500
Company. Tata Steel has a balanced global presence in over 50 developed European and fast growing Asian markets, with
manufacturing units in 26 countries
TATA STEEL’S INTERNATIONAL BUSINESS ACTIVITY. AND IN THE AREAS OF
IMPORTANCE ON INTERNATIONAL BUSINESS.
Tata Steel in UK and Europe
As part of the Tata Steel Group (TSG) of companies, Tata Steel Europe (TSE) is committed to the Group’s
vision of being a global benchmark in Value Creation and Corporate Citizenship. Maintaining this commitment
during the deepest peacetime contraction in European steel demand for 80 years has been challenging given the
necessity of returning the European operations to profitability.
Tata Steel in South East Asia
Indonesia
Singapore
Thailand
Malaysia
Philippines
Vietnam
TATA STEEL WORLD WIDE
NatSteel has always placed an emphasis on continuous improvement. During the year, Kepner Tregoe was
engaged as a consultant to drive performance excellence through various focused projects targeted at achieving
strategic objectives. Business processes continued to be strengthened. It also initiated knowledge management
for synergy in knowledge sharing as well as daily management for improving operational performance. SAP
was successfully implemented in NatSteel in September 2009 and will subsequently be rolled out to its
subsidiaries. NatSteel commissioned a new Fume Extraction Bag house at its Singapore plant to improve the
working environment. In Xiamen, a new series of earthquake resistant and high yield bars were launched.
Capacity expansion and extension of the distribution network are currently in progress in line with the optimism
in the construction industry. NatSteel and its subsidiaries have joined efforts in improving its supply chain
management using the Theory of Constraint principle to achieve leaner and more effective operations.
The economy began to look up, the global financial crisis continued to have a dampening effect on the
economies of South East Asia in the first half of the year. A quick response from Governments with huge
stimulus packages helped mitigate the impact. However, a large part of the steel industry was negatively
affected and underwent a demand contraction with Indonesia contracting by 27%; Singapore by 23%; Thailand
by 20%; Malaysia by 9%; and the Philippines by 3%. The exception was Vietnam which grew by 30%. Despite
a drop in demand, the second half showed indications of economic recovery when the effects of the stimulus
packages kicked in. Demand for long products increased in the second half to near pre-crises levels.
PERCENTAGE OF THEIR SALES AND INCOME COMES FROM OUT SIDE THE
COUNTRIES
Tata Steel Europe (TSE): Deliveries in Tata Steel Europe during FY 2009-10 (14.2 million tonnes) declined
by 25% over FY 2008-09 (19 million tonnes) due to the market conditions in Europe and the UK. The
recessionary conditions that commenced in the second half of the previous year continued to affect the
operations for most part of the financial year 2009-10. The two halves of the
Financial year under review were in sharp contrast to each other.
NatSteel Holdings: NatSteel recorded an increase in sales by 3% in FY 2009-10 (2.44 million tonnes) over FY
2008-09 (2.37 million tonnes). The increases were mainly in the subsidiaries in China, Vietnam and Thailand
while the Singapore operations and other subsidiaries witnessed a dip in the sales volume over last year due to
lower construction activity in the region especially in the first half of the year. The Chinese subsidiary
contributed the most (FY 2009-10 0.532 million tonnes) with an increase of 25% in volumes over the prior year.
In Vietnam, construction demand led to an increase in steel demand resulting in sales of NatSteel Vina to be at
0.13 million tonnes in FY 2009-10, 65% higher than the previous year. In Thailand the deliveries at 0.152
million tones witnessed a growth of 20% over 2008-09. The profit after tax for NatSteel Holdings was at Rs.
102 crores in FY 2009-10 as compared to Rs. 7 crores in the financial year 2008-09.
Earnings in Foreign Exchange
(i) Export of steel and other materials (at F.O.B. value) Rs. 2,034.81 crores (2008-09: Rs. 3,309.78 crores)
[including value of exports through export houses].
(ii) Interest received Rs. 20.60 crores (2008-09: Rs. 19.01 crores).
(iii) Others Rs. 44.07 crores (2008-09: Rs. 46.87 crores).
HEAD QUARTERS OF EACH COMPANY?
Australia
Tata Steel InternationalUnit 166-74 Micro CircuitDandenong SouthVictoria 3715Australia
Brazil
Tata Steel InternationalAv. das Americas, 4200Bloco IV - sala 30622640-102 - Rio de Janeiro - RJBrazil
China
Tata Steel InternationalRm. 1101 Yi An Plaza33 Jian She Liu Ma RoadGuangzhou 510 060China
France
Tata Steel International15 Allée Jean JaurèsToulouseFrance
Germany
Tata Steel InternationalAm Trippelsberg 4840589 DüsseldorfGermany
Greece
Tata Steel International5 Pigis Avenue151 27 MELISSIAGreece
Hong Kong Sar
Tata Steel InternationalUnit 2106-10, Devon House979 King's Road, Quarry BayHong KongHong Kong Sar
Italy
Tata Steel InternationalVia Rondoni 120146 MilanoItaly
Singapore
Tata Steel International24 Raffles Place#13-01 & 02, Clifford CentreSingapore 048621Singapore
South Africa
Tata Steel InternationalPO Box 15113Farrarmere1518 BenoniJohannesburg
South Africa
Spain
Tata Steel InternationalRosario Pino 14-16Torre Rioja28020 MadridSpain
Thailand
Tata Steel International18th Floor, Room 1807, Q House Asoke Bldg66 Sukhumvit 21, North KlongtoeyWattanaBangkok 10110Thailand
United States
Tata Steel InternationalChicago office475 N. Martingale Road, Suite 400Schaumburg, IL 60173United States