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Production Performance of Q1

Jamshedpur, July 03, 2006

Tata Steel completed the first quarter of FY07 on a buoyant note with a significant increase in its production. Hot metal production at 1.31 million tones and crude steel production at 1.21 million tones was higher by 8.2% and 9.4% respectively, as compared to volumes in the first quarter last year. The saleable steel production at 1.11 million tones registered an impressive increase of 17%.

The first quarter sales at 1.12 million tones, has recorded an increase of 28 %, as compared to that of the corresponding period of last year. The sales to auto sector is 0.19 million tones and has increased significantly by 32%. The sale of branded rebars, Tata Tiscon, has registered a notable increase of 42%.

The company is undergoing a major restructuring of supply chain and the replenishment process under the “Theory of Constraints” initiative. Pilot projects have been rolled out under this initiative and they have started giving remarkable results in reducing stock outs and enhancing the sales.

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