The business model of the Tata Steel Group is aligned to its vision of "Becoming the Benchmark in Value Creation and Corporate Citizenship" in the steel industry. Through this it maintains a strategic focus on continuous value creation for all its stakeholders. The Company is one of the largest steel producers in the world and one of the world's most geographically diversified, with operations in 26 countries and a commercial presence in over 50 countries. With a focus on continuous improvement, the Company meets diverse customer requirements across multiple segments globally.

India

The Company successfully implemented its 2.9 mtpa brownfield expansion at Jamshedpur which increased its total crude steel capacity to 9.7 mtpa.

India witnessed an economic slowdown with GDP growth of 5% in Financial Year 2012-13. Lacklustre demand coupled with increasing imports impacted profitability of the Indian operations. Increasing share of bought out material, volatility in steel prices and increased cost due to stabilisation of the 2.9 mtpa brownfield expansion project at Jamshedpur in the first year of commissioning put further pressure on profitability.

The Indian operations, notwithstanding the enormity of the internal and external challenges faced, posted a robust EBITDA of Rs.11,698 crores as against Rs.11,559 crores in the previous year. The Indian operations recorded best ever performance in Hot Metal, Crude Steel, Saleable Steel production and sales. The recently commissioned LD#3 furnace has exceeded 1 million tonnes of liquid steel production in the first year of operation.

Hot metal coil, Jamshedpur, India

Crude Steel production of 8.13 million tonnes in Financial Year 2012-13 registered a 14% increase over the previous year while achieving best ever sales of 7.48 million tonnes. Flat product deliveries increased by 20% over the previous year due to the capacity expansion in Indian operations. The Company expanded its marketing efforts to sectors such as Lifting & Excavation, Railways, Ship building and Defence. "Tata Astrum", the recent addition to the Company's branded portfolio was developed to penetrate the SME market, earlier serviced by opportunistic brokers. Long Products achieved highest ever sales of 2.98 million tonnes with an all time high channel sales of 1.7 million tonnes in Financial Year 2012-13, primarily leveraging the Company's retail presence through its distribution network and offering better value propositions to its customers. Superior quality long products and just-in-time inventory practices ensured premium pricing over secondary steel manufacturers. The Ferro Alloys and Minerals Division (FAMD) continued to support the steel division's profitability in spite of lower production and sales compared to the previous year. FAMD increased its focus on domestic sales of ferro chrome recognising the shift in the pattern of global ferro chrome production on account of increased chrome ore exports from South Africa to China.

The Tubes Division, a Strategic Business Unit (SBU) of the Company, manufactures and markets a wide range of steel tubes and pipes. It is the only tube manufacturer with a pan India presence in three product segments namely Conveyance, Structural and Precision. It is the domestic market leader in Conveyance and Structural Tubes, with a significant national presence in Precision Tubes catering to the automotive and engineering segments. The products and services of the SBU are differentiated in the market with the brands such as Tata Pipes in conveyance, Tata Structura in construction and Tata Precision Tubes in the automotive segments. The Company's upstream growth in capacity is synchronised with the downstream expansion of the product portfolio such as Tubes and Cold Rolled products. The SBU's growth is linked with the expansion of the Flat Product value chain. Going forward, in line with the expansion of the Flat Product's capacity, the Tubes SBU is poised to increase capacity by around 0.6 million tonnes in the next five years to grow to 1 million tonnes, consolidating its leadership position in the chosen market segment with its value added downstream products and best in class service to its customers.

Brownfield expansion at Jamshedpur, India

The Company is now embarking on its next phase of growth and is setting up a 6 mtpa greenfield steel project in Odisha. A new subsidiary, Tata Steel Odisha Limited, has been set up specifically for this project. The project will be implemented in 2 phases of 3 mtpa each. The Company has successfully finalised the project financing of Rs. 22,800 crores with a consortium of 21 banks and financial institutions.

The Company continued its pursuit of value creation for all stakeholders following the Total Quality Management (TQM) approach systematically. In 2012, the Company became the first integrated steel company in the world to win the "Deming Grand Prize" awarded by JUSE, Japan.