Tata Steel completed the first quarter of FY09 on a buoyant note with a significant increase in its production. Hot metal production at 1.387 million tonnes and crude steel production at 1.253 million tonnes was higher by 3.2 % and 8.6 %respectively, as compared to volumes in the first quarter last year. The saleable steel production at 1.187 million tonnes (mt) registered an impressive increase of 11.5%.

The first quarter sales at 1.159 million tonnes, has recorded an increase of over 11 %, as compared to that of the corresponding period of last year. The revenue from sales of branded products during the period has increased by 47% as compared to last year. The sales to automotive sector increased to 0.216 mt corresponding to a market share of 42 % as against a market share of 38 % in first quarter of FY08. The sales of skin panels for the current quarter at 7477 tonne as was significantly higher compared to 4248 t for the corresponding quarter last year. This was achieved mainly because many new approvals for commercial supplies were obtained during the period after meeting the stringent requirement of the auto manufacturers. There was significant reduction in the working capital due to better operating management and working capital financing initiatives. As part of the Company’s strategy to “Enhance Unique Offerings”, a new Tiscon grade Fe500 was launched in the Retail Channel and Super Ductile Rebars were introduced for earth quake prone zones.

On 31st May’08, Asia’s largest Blast Furnace, the H Blast furnace was blown in. It was commissioned in a record time. The hot metal of correct quality from the new furnace was cast in steel making shops within 36 hours of blowing in which is a record in itself.

The commissioning of 3rd caster and the Vessel upgrade at LD Shop #1 is as per schedule and will be completed by end of Sep’ 08. With the completion of this, the steel making capacity at Jamshedpur Works will increase to 6.8 million tonnes as compared to the current capacity of 5 million tonnes.

Though continuous improvement has been inherent in Tata Steel culture, it is the main theme for current year. Some very remarkable achievements have been witnessed in first quarter as a result of special focus and attention to the improvement initiatives. The yield at HSM has increased to 98.19% as compared to 97.87% last year, WRM yield has increased to 97.19 as against 96.4% last year. The substitution of Jhama coal in place of the expensive raw petroleum coal has resulted in major cost avoidance and has also found an innovative use of the otherwise not usable coal from our own coal mines.

As reported earlier, the work on the synergy realization benefits with cross learning from Corus under way. Among the major initiatives, significant work was done in the Cold Rolling area which has the potential to significantly enhance the value added CR production. A new technique of Blast Furnace throat repair learned from Corus has avoided a major shutdown in the F Blast Furnace originally planned in the current year.