Based on a study on 23 world class steel makers, Tata Steel has been ranked the best steel company in the world by World Steel Dynamics Inc, USA (WSD), the world's leading steel information service provider. Tata Steel's selection as the topmost steel manufacturing company by WSD is a vindication of the success of the sweeping and radical changes made by the Company to keep it vibrant, competitive and sustainable.

World Steel Dynamics regularly analyses and publishes reports on matters related to steel such as prices, cost, supply and demand, finance, etc. It also conducts customised steel research for steel producers across the globe. WSD's steel experience, steel database and availability of steel statistics are unmatched. In performing steel forecasts WSD seeks to understand how the price power of steel companies the world over will be impacted by changes in the industrial structure of the economies. The WSD international client list includes major integrated and non-integrated steel companies, steel users, equipment and raw material suppliers, financial institutions, government agencies, metal traders, steel service centres and trade associations.

Even after 98 years of its establishment, Tata Steel over a period of modernisation of its operations can boast of extremely strong fundamentals. Tata Steel's strength stems from its proximity to raw material sources and its ability to gain dominant position in a large and growing market by virtue of supplying a product mix geared towards high margin and high value application. The company's initiatives in the market place such as the introduction of strong brands has yielded rich results for it. As a result of these fundamentals it is one of the most profitable steel companies of the world.

The WSD report has covered the study of 23 steel manufacturing companies across the globe in Asia, Europe, Australia and the Americas. Some of the these Companies, including Tata Steel, are Bao Steel, Anshan Steel, Wuhan, Maanshan and Shagang from China; Blue Scope from Austalia; Arcelor, Corus, Thyssen Krupp from Europe; Dofasco, Canada, US Steel, SDI and Nucor from USA; CSN, CST and Gerdau from Brazil, JFE, Nippon Steel from Japan; POSCO from South Korea, Mittal Steel, Severstal, Russia, China Steel from Taiwan. The study evaluated these Companies on 20 parameters. These were, cash operating costs, harnessing technological revolution, profitability in 2000-2004, the balance sheet, dominance in country/region, domestic market growth, expanding capacity, access to outside funds, cost cutting efforts, down stream businesses, environment and safety, iron ore and coking coal mines, liabilities for retired workers, location to procure raw materials, alliances, mergers, acquisitions and joint ventures, pricing power with large buyers, threat from nearby competitors, product quality, skilled and productive workforce, stock market performance (three years). Emerging out of the study, Tata Steel has been ranked first with a weighted average score of 8.11. POSCO of South Korea followed in the second place with a score of 7.87. Severstal, Bao Steel and Mittal Steel scored 7.65, 7.61 and 7.21, respectively.

Tata Steel scored 10 points on the following parameters : cash operating cost, profitability (2000-04); dominance in country/region; expanding capacity, access to outside funds, iron ore and coking coal mines and location to procure raw material. It scored nine point for environment and safety, stock market performance over a period of three years and for alliances, mergers, acquisitions and joint ventures. The company was given eight points for Balance Sheet, cost-cutting efforts, pricing power with large buyers, product quality an skilled and productive workforce.

Tata Steel with a present capacity of 5 million tonnes per annum at Jamshedpur and with another 2 million tones per annum of finishing capacity of its subsidiary, NatSteel Asia with manufacturing base in seven countries in South East Asia and China, aspires to become a 15 million tonne company by 2010 with de-integrated approach to manufacturing. In its attempt to become a true global player with strong fundamentals, it plans to be present in multiple locations, in different countries. It would further consolidate its dominant position in the domestic market with strong brands and make an impact on the global market in the auto and construction segment. In order to achieve this goal, Tata Steel would be having primary and finishing capacities in several location in India and abroad, develop value added products, consolidate its raw material base and grow in the mineral business. It would also develop a deep-sea port in Orissa to facilitate flow of inbound and outbound materials.