In the Financial Year 2012-13, about 75% of TSE's crude steel production was used in hot rolled coils. Most of the remainder was further processed into sections, plates, speciality steels or wire rods, or sold in a semi-finished form. Approximately 30% of hot rolled coil was sold without further processing and 65% was further processed in cold rolling mills and coating lines. The remainder was transferred to the TSE's tube mills for the manufacture of welded tubes. Principal end user markets for the Group's steel products are the construction, automotive, packaging, lifting and excavating, energy and power, and rail sectors.

Crude steel production at different facilities in TSE along with their capacity is shown below:

3. NatSteel Holdings

During the Financial Year under review, NatSteel Holdings (NSH) achieved a production level of 1.68 million tonnes as compared to 1.63 million tonnes of the Financial Year 2011-12, registering an increase of 3%. Sales volume at 1.93 million tonnes was higher by 7% as compared to 1.81 million tonnes during the Financial Year 2011-12.

With its recent capacity expansion in China, NatSteel's production reached a new high of 81k tonnes per month during the 4th quarter of the Financial Year 2012-13. Overall sales for the year from China stood at 653k tonnes, a 21% growth over the Financial Year 2011-12. Sales in Vietnam stood at 112k tonnes, registering a growth of 14% over the Financial Year 2011-12. Australian operations have undergone a major transformation, with the closure of Queensland operations and significant improvement in productivity across all other facilities.

4. Tata Steel Thailand

Thailand showed a robust recovery from floods in late 2011 and posted a y-o-y GDP growth of 6.4% led by demand in the automotive and construction segment.

Tata Steel Thailand (TSTH) recorded a sales volume of 1.18 million tonnes during the Financial Year 2012-13, registering an increase of 3% over the Financial Year 2011-12 (1.14 million tonnes). While the enhanced growth in the construction sector helped in increased rebar sales, the wire rods product line was adversely affected by cheaper imports. The mini blast furnace, which was mothballed in August, 2011, continued to stay temporarily shut due to the comparatively higher cost of billet from the hot metal route, as against the scrap route. The company strengthened its leadership position by increasing its market share in rebars and by establishing a stronger foothold of its brand 'Tata Tiscon' in the regional markets of Thailand. The year also saw the launch of Seismic rebars, an earthquake resistant rebar for the first time in Thailand.

TSTH's profit before tax for the Financial Year 2012-13 includes a non-cash impairment provision ofRs.518 crores.

5. Tata Metaliks Limited

Tata Metaliks Limited (TML), a subsidiary of Tata Steel Limited, is one of the largest producers of Foundry Grade Pig Iron in India. The company has two plants in India – in Kharagpur (West Bengal) and Redi (Maharashtra) – with a total capacity of 6.5 lakh tonnes per annum. Tata Metaliks Kubota Pipes Limited (TMKPL) is a subsidiary of Tata Metaliks Limited engaged in the manufacturing of DI (Ductile Iron) Pipe with a total capacity of 1.10 lakh tonnes per annum. The production and sales for the Financial Year 2012-13 and the Financial Year 2011-12 are shown below:

During the financial year under review, there has been a significant improvement in the operating margin of the Kharagpur plant after the upgradation of the Blast Furnace and setting up of the Sinter Plant which has been recently commissioned. The company is also evaluating different options to divest its Redi Plant which remained closed since November 2011. The company has done an independent valuation of its plant and machinery and other assets (excluding land) at Redi Plant and recognised an impairment loss of Rs. 45 crores during the Financial Year 2012-13.

On 10th April, 2013, Tata Steel Limited announced the merger of TML and TMKPL with itself through a composite scheme of amalgamation to be sanctioned through a court approval process. Tata Steel will issue 4 (four) equity shares of Rs. 10 each for every 29 (twenty-nine) equity shares of Rs. 10 each held by the public shareholders of TML upon approval of the scheme by the courts. Tata Steel along with a subsidiary holds 50.09% of the equity share capital of TML.

TM International Logistics Limited (TMILL) and its subsidiaries offer logistic services pertaining to port-based services, shipping, freight forwarding and marine services.

TMILL runs terminal operations in Haldia, Kolkata and Paradip Port management services of TMILL include container stuffing/destuffing facility and handling of various types of clean cargo, both bulk and break bulk including project cargo. The company owns a fleet of pay loaders, forklifts and trailers to provide port services and also a vast open storage area along with covered warehousing facilities. During the Financial Year 2012-13, TMILL commenced its operations at Sohar Port Terminal, Oman. The company recorded an increase of 13% in turnover over the Financial Year 2011-12, however there was a slight reduction in profit due to additional depreciation. The shipping business arm of TMILL achieved a milestone by handling 7.9 million tonnes of cargo during the Financial Year 2012-13, exceeding its previous best of 5.28 million tonnes in the Financial Year 2010-11.

The key performance highlights of the company during the Financial Year 2012-13 are: