Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Investor Presentation (September 2005)
31 slides from Tata Steel's investor presentation, Sep 12, 2005
Slide 1: Tata Steel: Commitment to Excellence
Tata Steel : Commitment to Excellence
Slide 2: 1 MTPA expansion: Iron making
1 MTPA expansion Iron making • New SP # 3 : 2 mtpa • ‘G’ BF Upgradation from 1.24 to 1.8 mtpa, increase coal injection • Fourth stove at ‘G’ BF Steel making • Augmentation of pulverized coal injection for ‘F’ & ‘D’ BF Casting Rolling
Slide 3: 1 MTPA expansion: Steel making, casting and rolling
1 MTPA expansion Iron making LD#1, Two Billet casters Steel making • Capacity from 1.5 to 1.8 mtpa • One caster to cast larger sections LD#2, Three slab casters • Capacity from 2.7 to 3.2 mtpa Casting Rolling • HSM capacity from 2.6 to 3.1 mtpa • New Rebar mill of 0.6 mtpa
Slide 4: 1 mtpa expansion: Balancing facilities & utilities
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 fired • New oxygen plant : 720 tpd
Slide 5: 1 mtpa expansion: Quality improvement
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
Slide 6: "G" Blast Furnace
“G” Blast Furnace Previous Upgraded • Production (mtpa) 1.24 1.8 • Working volume (m3) 1784 2308 • Campaign life (years) 10 15 • Fuel rate (Kg/thm) Coke 470 385 Coal 100 160 • Hot metal quality %S 0.050 0.035 % Si 0.75 0.50
Slide 7: Tata Steel FY06 Plan
Tata Steel FY06 Plan • 5 MT crude steel o Reduce cost o Reduce specific consumption o Improve productivity • Improve raw material quality • Improve product mix
Slide 8: FY06: Daily crude steel production
FY06 : Daily crude steel production 103 tpd 16 5 mtpy = 13700 tpd 15 14 13 12 11 10 9 HSM 8 Shutdown LD#2 : Caster # 3 shutdown 7 'G' Fce. Blown in 6 1st 31st April Aug
Slide 9: 'G' Fce. Production (kt / month)
‘G’ Fce. Production ( kt / month ) 1.8 mtpa = 150 kt/month 157 142 135 109 122 104 98 102 92 85 62 Blown out for upgradation : 3rd Dec’04 67 66 l Ju 05 ay 5 n 3 5 7 9 1 3 5 '0 Ju -9 -9 -9 -9 -0 -0 -0 r' M ug 92 94 96 98 00 02 04 Ap A
Slide 10: Cost comparison F, G vs. A to E
Cost comparison F , G vs. A to E Period – Aug’05 Indexed (Rs/t) 135 110 100 A TO E F G
Slide 11: Bigger furnace: Cost advantage
Bigger furnace : Cost advantage • Higher % Sinter • Lower/no Sponge Iron • Coke rate • Coal injection • Purchased metallic consumption
Slide 12: Coal injection rate (kg/thm)
Coal injection rate ( kg/thm ) ‘G’ Fce. 120 blown in 6th 117 112 Apr’05 106 90 87 86 78 79 69 73 65 64 56 47 F Fce G Fce
Slide 13: Sponge & Pig iron consumption trend
Sponge & Pig iron consumption trend 137 123 98 95 88 86 83 73 27 27 24 18 16 17 12 5 05 n l y g 3 4 5 Ju Ma Ju Au 2-0 3-0 4-0 r' Ap 200 200 200 Sp. Iron- ( A-F) Kg/thm Pig Iron-Kg/tcs
Slide 14: Maximising hot metal ratio
Maximising hot metal ratio HM+SCRAP (KG/TCS) 1200 1182 1173 1178 1155 1151 1158 1145 1100 SCRAP 1089 1070 1066 1048 1049 1000 1047 944 HM (KG/TCS) 900 g'05 2 3 4 5 3 4 5 6 7 8 9 0 1 01- 0 02- 0 03-0 04-0 93-9 96-9 97-9 00-0 92-9 94-9 95-9 98-9 99-0 A-Au COST RESEARCH & STANDARD COSTING
Slide 15: Specific energy consumption (Gcal / CS)
Specific energy consumption (Gcal / CS ) 1 GCal/CS = Rs 274 Cr ‘G’ Fce. 7.997 blown in 6th 7.78 Apr’05 7.26 7.184 7.195 7.189 7.401 7.065 6.975 6.965 7.072 6.88 98-99 99-00 00-01 01-02 02-03 03-04 04-05 Apr'05 May Jun Jul Aug
Slide 16: Saleable steel cost (Rs / t indexed)
Saleable steel cost ( Rs / t indexed ) FY’02=100 146 145 139 123 124 123 116 107 100 ‘G’ Fce. blown in 6th Apr’05 '02 '03 '04 '05 Apr'05 May June July Aug'05
Slide 17: Saleable steel cost ($/t)
Saleable steel cost ($/t) 240 210 $/t (Indexed) 180 Cumulative inflation 150 Cost 120 90 Real Cost 60 30
Slide 18: Production & manpower productivity
Production & manpower productivity 340 328 6 290 269 5 264 5 3.8 240 Tonnes / Man Year 3.2 3.4 245 4.22 4 Million Tonnes 3 4.1 190 2.5 196 3 140 152 2 90 107 83 40 1 -10 0 FY'94 FY '96 FY '98 FY '00 FY'02 FY'04 FY'06 (P) Poductivity Crude Steel Production
Slide 19: Tata Steel FY06 Plan
Tata Steel FY06 Plan • 5 MT crude steel o Reduce cost o Reduce specific consumption o Improve productivity • Improve raw material • Improve product mix
Slide 20: Sinter production (mt)
Sinter production (mt) 6 5.25 5 3.87 3.9 3.92 4 3.69 3.89 3.78 3 2 1 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 (P)
Slide 21: Clean Coal Production at West Bokaro
Clean Coal Production at West Bokaro 20 19.8 Clean Coal ( Lakh t ) 18.1 19.8 17.6 17% Ash Yield Loss 3.5% 15 16% Yield Loss 2% 15% 14% 10 FY-88 FY-03 FY-04 FY-05 FY-06
Slide 22: Clean Coal: Low ash advantage
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
Slide 23: Coke plant: Change in coal blend (FY06)
Coke plant : Change in coal blend ( FY06) • Higher usage of own coal (64%) planned in FY’06 (P) against FY’05 (54%) to reduce the coal bill 2 3 5 5 1 8 9 39 31 36 32 41 40 39 41 18 23 14 13 FY'03 FY'04 FY'05 FY'06 (P) Jharia West Bokaro COST RESEARCH & STANDARD COSTING Semi Soft HCC Anth. *Exchange
Slide 24: Tata Steel FY06 Plan
Tata Steel FY06 Plan • 5 MT crude steel o Reduce cost o Reduce specific consumption o Improve productivity • Improve raw material productivity • Improve product mix
Slide 25: FP market share in domestic market
FP market share in domestic market Overall Flat Product Domestic Hot Rolled Product* (Incl. Free Market) 2400 15% 16% 16% 17% 15% 16% 20% 1200 18% 14% 20% 12% 11% 9% 1800 8% 1200 10% 600 10% 600 0 0% 0 0% FY01 FY02 FY03 FY04 FY05 FY06 P FY01 FY02 FY03 FY04 FY05 FY06 P '000 Tonnes Market Share (%) '0
Slide 26: Automotive sales trend – Domestic + Export
Automotive sales trend – Domestic + Export 933 (In 000 MT) 50 50 39 Exports Galv 648 Exports CR 17 11 10 Galv 510 464 6 CR 330 220 HR 330 284 280 FY-04 FY-05 FY-06 (P)
Slide 27: Long products product mix improvement
Long products product mix improvement 100% 90% 30% 80% 40% 46% 70% 62% 67% 60% 22% 74% 50% 19% 40% 35% 30% 28% 20% 39% 34% 30% 24% 10% 13% 10% 3% 2% 0% Fy'01 Fy'02 Fy'03 Fy'04 Fy'05 Fy'06 Semis FQ/Structurals Wire rods Rebars
Slide 28: Tata Steel Future Plan
Tata Steel Future Plan • Global leader & World class • Maintain low cost advantage
Slide 29: Medium term growth plans
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 Chattisgarh • Iran : Iron ore, pellets & steel • Green field project in Bangladesh •
Slide 30: Tata Steel future strategy
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 •
Slide 31: Thank You!
Thank You !