Tata Steel executes the inaugural blockchain enabled trade between India and Bangladesh
~ As part of its vision to be a technology and innovation leader, Tata Steel executes its second major blockchain enabled trade and first multi bank transaction out of India. ~
Tata Steel has executed a blockchain enabled paperless export order with a metals major in Bangladesh. This makes it the first such deal executed between an India based company and a counterparty in Bangladesh assisted by different banks at respective ends. This transaction was facilitated by Standard Chartered, India, and was conducted on Contour’s blockchain trade platform, which enables banks, corporates, and other trade partners across the world to transact with each other.
Standard Chartered Bank advised and confirmed the letter of credit (LC) favouring Tata Steel basis instructions received over Contour and was also able to present documents to the Buyer’s Bank over the platform. This helped in early resolution of discrepancies and reducing the overall turn-around-time from weeks to days.
The seamless transmission of LC and e-presentation of document between the two different banks at both ends via the platform under three hours is a testament to reduced paperwork and time and increased operational efficiency brought about by this solution.
Rajeev Singhal Vice President (Flat Products), Tata Steel, said: “Tata Steel has made pioneering efforts this year to digitally transform its trade practices that are sustainable, efficient, and also saves time. We are glad and more confident now that we have executed the first multi-bank blockchain enabled trade. The technology along with the pivoting efforts of Tata Steel provides efficiency and agility in enabling a better customer interface. The Covid-19 pandemic has highlighted that technology will lead the way of doing business in future and experimentation using blockchain for better customer experience is one such step towards enabling this transformation.”
This integrated solution using blockchain technology allows all parties involved in the transaction to communicate on a single platform in real time. It aims to reduce processing time by digitising the entire LC process and eliminating the operational inefficiencies as compared to traditional paper-intensive process of LCs. Further, this technology also enhances the safety of transactions. The information can be shared only with other authorised members on the network and is immutable, reducing the risk of data manipulation and fraud while increasing transparency for all parties involved in the transaction.
Earlier this year, Tata Steel executed its first blockchain enabled trade and this will be its first multi-bank transaction out of India. The Company is committed to move towards digitally enabled transactions which will help in seamless and efficient trading practices in the future.
About Tata Steel
Tata Steel group is among the top global steel companies with an annual crude steel capacity of 33 million tonnes per annum. It is one of the world's most geographically diversified steel producers, with operations and commercial presence across the world. The group recorded a consolidated turnover of US $21.06 billion in the financial year ending March 31, 2021.
A Great Place to Work-CertifiedTM organisation, Tata Steel Ltd., together with its subsidiaries, associates, and joint ventures, is spread across five continents with an employee base of over 65,000.
Tata Steel has been a part of the DJSI Emerging Markets Index since 2012 and has been consistently ranked amongst top 5 steel companies in the DJSI Corporate Sustainability Assessment since 2016. Besides being a member of ResponsibleSteelTM and worldsteel’s Climate Action Programme, Tata Steel has won several awards and recognitions including the World Economic Forum’s Global Lighthouse recognition for its Jamshedpur, Kalinganagar and IJmuiden Plants, and Prime Minister’s Trophy for the best performing integrated steel plant for 2016-17. The Company, ranked as India’s most valuable Metals & Mining brand by Brand Finance, featured amongst CII Top 25 innovative Indian Companies in 2020, received rating of ‘A-‘ (leadership band) from CDP for its Climate Change disclosure and Supply Chain disclosure, Steel Sustainability Champion 2020 recognition from worldsteel, ‘Most Ethical Company’ award 2021 from Ethisphere Institute, Best Risk Management Framework & Systems Award (2020) from CNBC TV-18, and Award for Excellence in Financial Reporting FY20 from ICAI, among several others.
Statements in this press release describing the Company’s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Important factors that could make a difference to the Company’s operations include, among others, economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which the Company operates, changes in or due to the environment, Government regulations, laws, statutes, judicial pronouncements and/ or other incidental factors.
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