100th Annual Report 2006-2007 - Tata Steel

Management Discussion and Analysis
Mr. Koushik Chatterjee and Mr. David Lloyd as members.
The SIC will develop the common agenda for the combined
Group that will focus on continuous improvement, sharing of
best practices, manufacturing excellence, cross fertilisation
of research and development capabilities, rationalisation of
costs across the businesses and create the foundation to
pursue growth in the future. A structured approach has been
undertaken and the entire integration is being co-ordinated
by a Program Office formed for the above purpose. Several
teams having representations from both companies have
already been set up to handle the integration and strategic
work streams.
b) Integration of NatSteel Asia Pte. Ltd. and Tata Steel
(Thailand) Public Company Ltd. (erstwhile Millennium
Steel)
The Company has undertaken integration of NatSteel Asia
Pte. Ltd. and Tata Steel (Thailand) Public Company Ltd. since
their acquisition. This was achieved through the formation of
a number of working committees with active participation
from all companies. These committees focus on key areas like
access to new markets, synergy in procurement, product mix
improvement, new product development, Total Operations
Performance (TOP) in operations and marketing.
To consolidate its position further in South-East Asia, NatSteel
Asia (Singapore) Pte. Ltd., a wholly-owned subsidiary of the
Company has acquired 100% equity stake in NatSteel Trade
International Pte. Ltd., Southern NatSteel (Xiamen) Ltd., in China
and a majority stake in NatSteel Vina Co. Ltd. in Vietnam.
IV. Consolidation of Ferro Chrome business in India and
Overseas
The Company is one of the largest producers of ferro chrome
in India. The Company is setting up a greenfield ferro chrome
project in South Africa which will produce 134,500 tonnes per
annum of ferro chrome. This project is likely to be commissioned
by November 2007. South Africa is the largest producer of
ferro chrome in the world and availability of cheap power
and chrome ore makes the country one of the most attractive
destinations to produce ferro chrome.
On 8th March, 2007, the Company acquired 100% stake in
Rawmet Ferrous Industries Private Ltd. in Orissa to strengthen
its production capacity for manufacture of ferro chrome in
India. Rawmet has a ferro alloys plant which can produce 50,000
tonnes per annum of high carbon ferro chrome.
4. Ownership of strategic raw materials
As part of its long term strategy, the Company is focused on
developing raw material sources for its global operations. In this
regard, the Company has formed a Global Minerals Group which
is actively exploring various opportunities to secure access to
iron ore and coal in various geographies. This will enable the
Company to continue its competitive cost position in the global
steel industry.
5. More from Steel and Branding
The Company remains focused on enriching its product mix and
pursuing branding initiatives to move up the value chain. The
Company has several well known brands in its portfolio i.e. Tata
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