Directors' Report
Other Projects
Tata BlueScope Steel Limited
The 50:50 Joint Venture agreement between Tata Steel Limited
and BlueScope Steel Limited to form the Tata BlueScope Steel
Limited became effective from 30th May, 2006. The Building
Solutions facilities at Pune, Bhiwadi and Chennai have become
operational since August 2006, December 2006 and January
2007, respectively. The construction of the Coated Steel
manufacturing facility at Jamshedpur is scheduled to start in the
first half of 2007.
The JV company offers a comprehensive range of branded
steel products for building and construction applications,
including the premium ZINCALUME® steel, COLORBOND® steel,
LYSAGHT™ roll formed steel products and BUTLER™ metal
building systems.
Tata Steel (KZN) (Pty) Limited
Tata Steel (KZN) (Pty) Limited, a subsidiary of the Company is
setting up a High Carbon Ferro Chrome Plant with a capacity of
1,50,000 tpa at Richards Bay, South Africa. The project is likely to be
commissioned by November 2007.
The Dhamra Port Company Limited
The Dhamra Port Company Limited (‘DPCL’), a Joint Venture
company between the Company and Larsen & Toubro Limited
(‘L&T’) has been set up for developing an all weather modern
deep water port in the state of Orissa on the Eastern Coast
of India.
The bulk cargo berths are being designed to accommodate
upto 180,000 (DWT) vessels. A 62.7 km (route distance) rail link
connecting the Port to the nearest railway station at Bhadrak on
Chennai-Howrah line is included in the project scope.
Tata NYK Shipping Pte. Limited
Tata NYK Shipping Pte. Ltd., a joint venture shipping company
between the Company and Nippon Yusen Kabushiki Kaisha (NYK
Line) has been set up to cater to dry and break bulk cargo and
subsequently the shipping activities.
Rawmet Ferrous Industries Private Limited
The Company acquired Rawmet Ferrous Industries Private Limited
in Orissa, a Ferro Alloys plant with a capacity of 50,000 tpa of high
carbon ferro chrome. This would supplement the Company’s
existing Ferro Chrome facility at Bamnipal, Orissa.
Subsidiaries
A list of the Company’s subsidiaries is given in Page Nos. 184-185
of this Report.
| 2007 has been declared as a
Safe Centenary Year |
The total revenues of the Company’s subsidiaries increased to
Rs. 9,058.63 crores during 2006-07 as compared to Rs. 5,481.39
crores during the previous year. This was mainly due to
consolidation of Tata Steel (Thailand) Public Co. Ltd. (erstwhile
Millennium Steel). Profit after taxes for 2006-07 was Rs. 21.46
crores as compared to Rs. 232.79 crores in the previous year
primarily on account of financing charges in overseas Special
Purpose Vehicles (SPVs) incurred for the acquisition of Corus
Group plc.
Safety
The Company has continued to scale up its safety performance
at all locations with the help from M/s. Dupont Safety Resources.
2007 has been declared as a ‘Safe Centenary Year’. Safety measures
have been strengthened and employees are being trained to think
on hazards/risks associated with their job. Systems have been
established to make employees responsible and accountable for
safety. Good safety performance is being rewarded. While ‘Safety’ has
been included as a Corporate Value, the main objective is to achieve
world-class standards of safety in the shortest possible time.
Directors
Mr. Subodh Bhargava was appointed on the Board of the Company
with effect from 29th May, 2006 as an Additional Director. The
shareholders subsequently approved the appointment at the
Annual General Meeting held on 5th July, 2006.
Mr. Kumar Mangalam Birla stepped down from the Board with
effect from 14th August, 2006. The Board records its appreciation
of the contribution made by Mr. Birla during his tenure as a
Director.
Mr. P. K. Kaul, Financial Institutions’ Nominee Director passed away
on 28th February, 2007. He was a member of the Audit Committee
since 1990 and Chairman of the same between 2002 and 2006.
The Directors record their deep appreciation of the valuable
advice and counsel provided by Mr. Kaul to the Board and the
Audit Committee over a period of 17 years.
Consequent to the acquisition of Corus, the Company has global
operations across almost all the geographies. The Board of Directors,
at its meeting held on 17th May, 2007, approved the appointment
of Mr. James Leng, Mr. Philippe Varin, Mr. Jacobus Schraven and
Dr. Anthony Haywards, Directors of Corus, as Additional Directors
on the Board of the Company. Mr. James Leng has also been
designated as Deputy Chairman of the Board.
The Directors believe that the induction of the above mentioned
four Corus Directors on the Board of the Company will bring in a
rich and varied experience that would enable it to manage the
business of the enlarged size and complexity.
In accordance with the provisions of the Companies Act, 1956,
and the Company’s Articles of Association, Mr. Nusli N. Wadia,
Dr. T. Mukherjee and Mr. A.N. Singh, retire by rotation and are
eligible for re-appointment.
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