Clerical cost. Depreciation on building furniture, and on office equipments. Post telegraphic cost and stationary expenditure. Travel and electricity expenditure.
After finding out the total expenditure of all the items, divide that particular amount by the total number of orders placed in that particular year, which will give the order cost in Rs. Determination of inventory carrying cost. Inventory carrying cost is the total expenditure incurred by the material management function for carrying the inventory in stock. So find the inventory carrying cost at first the following expenditure for the particular year is fount out.
Financial: goal is to keep investment in inventories within the limits of budget available so that composition of working capital is not thrown out of balance. Operating : a To obtain the best overall balance between production and inventory carrying cost on the one hand and customer service at the other.
Property protection : a To safeguard an important asset against theft preventable waste all unauthorized use.
To ensure an adequate supply of required kind of raw materials parts supplies and other items to maintain the most efficient level of operations to meet the demands of customers. To report and liquidate slow moving, non-moving defective or obsolete items.
To ensure the actual existence of physical quantities and values shown in the records. To prevent loss through waste, damage or pilferage. To signal over under-stocked conditions in relation to current and projected demand. Functions to be performed in the field of Inventory Control are : 1 Setting up norms for carrying Inventory. Locations of position responsible for performing each of these functions in organisation structure greatly vary from company to company.
Indirect materials consumed. Balance great bulk of indirect materials is made up of repair parts and general supplies. Responsibility for specific what?
With respect to raw materials and purchased parts, responsibility for determining when? However a strict budgetary control and allocation to specific work order control on high value items is exercised by Inventory control department organized separately under Material Management,Purchase deparment attached to manufacturing deparment determines where? Determination of indirect material when? Again a strict budgetary control and control on high value items for their allocation is exercised by Inventory control group.
All the records for raw material are maintained PSL price store ledger section of Finance Department. These records are maintained online. Again some on-Line checks are proposed to be introduced at raising of Store Issue voucher stage itself, for high value items so that induction is controlled strictly as per requirement of production schedule based on lead time for manufacture to keep WIP inventory under control.
All the records relating to WIP and Finished Goods are maintained in the cost section of finance department manually. Records of Inventory are maintained on a main frame computer centrally arranged having shared access from all functions for their specific use.
Inventory Record Keeping And Related Procedures How well Inventory records are maintained has a major bearing on the effectiveness of Inventory control program. Mostly information recorded in B. These records are maintained in an online system on main frame computer user departments have shared access for posting and retrieval of information. There is a system for reserving specific items as customer specific which is done by tagging on the item.
Posting of withdrawals or issue from inventory is done on specific authorization by a document called Store Issue voucher. Because of this as well as sizeable imported raw materials and compulsory bulk purchase of items like steel and copper in line with availability from SAIL and MMTC, the company has to carry high level of inventories. To achieve this , the firm should determine the optimum level of inventory. Efficiently controlled inventories make the firm flexible.
This increases the level of investment and makes the firm unprofitable. Inventory can be controlled in two ways 1. WHEN should it be ordered?
This system is adopted by large firms to put check to discripencies and errors made in stores. As maintenance of these items in the inventory results in additional expenditure by way of inventory carrying cost , these items are to be reviewed periodically , declared as surplus and disposed off to the.
The representatives of stores department and of PSL section sit together to fix up the reserve price for disposal. These reserve prices are kept confidential between manager stores and the executive incharge of PSL.
The accounting treatment accorded whenever the materials are declared surplus and charged off to. It is regarded as its major function being basic requirement for production. THIS is accomplished as follows under two systems;. Manual System: In almost all the manufacturing divisions, this ledger is maintained on the computer or a data processing machine. Where the priced stored ledger is maintained manually the register will be maintained. The stores Receipts Vouchers will be priced by the stores account section Stores review or stores bill group with reference to the purchase order and the bills passed for payments.
In respect of other receipts and issue documents,the valuation will be done by PSL section in consultation with the other account sections and departments concerned wherever required. The valuation of issues is generally done on the basis of monthly weighted average price. At the end of every month the ledger will be closed and the closing balances will be struck. The Priced Stores Ledger will be maintained material code-wise and a consolidated summary of all the materials held in stock class-wise and material codewise will be presented ,for obtaining the class-wise summary and the grand total of all class-wise summaries agreed with the general ledger.
NOTE 2: The initial space received with equipments are usually capitalized though these may not be required for immediate use and may be kept in the custody of 8. Processing and Receipt Documents : All the receipt documents are checked for validation of material code, unit of measurement and location with reference to material master on the computer.
The responsibility for correcting error in this respect rests with Stores department. In this respect two further error statements are generated. Processing of Issue Vouchers on Computer : Just like receipt vouchers , issue vouchers are also validated with reference to material master regarding material code, unit and location.
They are also validated. As in the case of receipts, the responsibility for error location rests with the Stores department. After correction , the validated vouchers are further processed in computer. The issue rate is arrived at base on a system of monthly weighed averages after taking into account all the receipts during the month.
Thus the issue vouchers are priced on weighted average only after all receipts have been accounted for in particular month. Processing of Transfer and Other Documents on Computer : The transfer and other documents specified above are priced in the PSL section and fed into the computer. A tabulation for all such documents processed on the computer is obtained at the end of every month. After reconciliation is made , the closing balance value in each of the stock heads is cleared and taken to closing stock accounts in the Financial Ledger, The journal entry is effected in Cost Accounts section.
The tools are classified as consumable tools and durable tools. The criteria for treating a tool as a durable tool are as follows : a the cost of each tool shall be above Rs 10,; and b the life expectancy of the tool shall be more than one year.
The codification of tools may include identification tools for consumableand durable tools. Based on the departmental. At the time of closing of accounts , alist of durable tools i. This list is compared with the list of durable tools kept by each department. Description Dr. The concerned departments are debited in the Cost Ledger. Code Cr. To ensure this, a continuous periodical reconciliation between the figures appearing in the PSL and those in the bin cards should be done in close coordination with the stores department.
In the case of discrepancy, transaction related to particular material code, where discrepancies have been noticed, are inspected thoroughly and necessary corrections effected wherever 8. In the case of corrections in the bin card balances, the same will be communicated to the Stock Verification section, especially in the case where stock verification has already been done by that section.
The responsibility of ensuring that all receipts are completely reported to EDP rests with the Stores Review group of Stores Accounts section. In case there is any difference, investigations are made so as to ensure proper reporting of issues in the monthly report. This tabulation lists out items where the quantity is positive but value is zero or negetive or where quantity is nil but value is positive or 8.
Quantity Mistakesin Issue Vouchers due to Punching Errors; Major errors are generally reconciled when current PSL is reviewed and minor errors are revealed at the time of reconciliation of PSL balances with bin card balances. If the quantity is puncged wrongly vaoue is also calculated wrongly by the computer.
However, still a few companies have to depend up on suppliers for the raw materials. The only effort which can be done towards ensuring that the buyers are saved in the curb or ceiling laid by the government on the prices which can be charged by the companies on its product.
However, most of the sale of steel is to the other industries or to through the distribution network and very less to the common man. The usage of aluminum has been constantly growing in the automobile sector which used to be the major customer of the steel industry.
It operates in more than 20 countries and has a commercial presence in over The company was established in Jamshedpur, India, in With these, the company has created a manufacturing and marketing network in Europe, South East Asia and the Pacific-rim countries, currently ranked th on Fortune Global ; it is based in Jamshedpur, Jharkhand, India.
It is part of Tata Group of companies. Tata steel is the 8th most valuable brand according to an annual survey conducted by Brand Finance and The Economic Times in Its main plant is located in Jamshedpur, Jharkhand, with its recent acquisitions; the company has become a multinational with operations in various countries.
The registered office of Tata Steel is in Mumbai. The company was also recognized as the world's best steel producer by World Steel Dynamics in It has the capacity to produce over 30 million tonnes of crude steel every year. The company produces crude steel and basic steel products, and makes steel for building and construction applications through Tata BlueScope Steel, its joint venture with Australia's BlueScope Steel.
Tata Steel has also set up joint ventures for the development of limestone mines in Thailand, the procurement of low-ash coal from Australia and coking coal from Mozambique, and the setting up of a deep-sea port in Orissa in India. The company is exploring opportunities in the titanium dioxide business in Tamil Nadu, India, and will soon be producing high carbon ferrochrome from its plant in South Africa.
It also raised debt capital from the market to finance the takeover. Infusion of debt in the capital structure has long term implications on its capital budgeting decisions and has also impacted the dividend and investment decisions.
Indian Steel Industry is gradually trying to trying to offset the effects of recession by concentrating on transportation and construction projects that are usually funded by the Government. This indicates robust growth opportunities in the steel sector and subsequently this is going to reflect on the capital structure of the steel companies including Tata Steel. The economic times company of the year award.
The best establishment award by the president of India, Mrs. Pratibha Devi Singh Patil. The super brand award of Tata Tiscon. Companies with highest corporate image by Nielsen. The times of India CSR award. The rashtriya khel protsahan purashkar. The Ispat paryavaran purashkar special award. The outstanding award for employee relation and welfare to siam industrial wires SIW Thailand. The good governance for environment in the factory and enterprises award to SIW.
The corporate social responsibility department of industrial work to SIW. He envisaged and conceived a steel town to the very last detail, later to be named as Jamshedpur.
Thus , even though it was Jamshedji Tata who had envisioned the mammoth projects, it was in fact Dorabji Tata who actually brought the ventures to existence and fruition. He was the first chairman of the gigantic Tata enterprises. It was in that the village of Sakchi was discovered at the confluence of two rivers, Subarnarekha and Kharkhai and the railways station of Kalimati.
The Tata Iron and Steel Company was floated. Thus, even though it was Jamshedji Tata who had envisioned the mammoth projects, it was in fact Dorabji Tata who actually brought the ventures to existence and fruition. He assumed Chairmanship of Tata Steel at the young age of 34, but his charismatic, disciplined and forward looking leadership over the next 50 years led the Tata Group to new height of achievement, expansion and modernization.
He was never interested for Micro- Management. It was he who zeroed in on Sumant Moolgaokar, the engineering genius who successfully steered our company for many years. He was a visionary whose thinking was far ahead of his time, which helped Tata Group launching its own Airline, now known as Air India. He is one of the most well known and respected industrialists in India. Tata was born into wealthy and famous family of Mumbai.
His childhood was troubled as his parents separated in the mid s, when he was about seven and his younger brother was five. His mother moved out and both he and his brother were raised by his grandmother Lady Navarjbai.
Ratan Tata completed his degree in architecture with structural engineering from Cornell University in , and the Advance management Program from Harvard Business School in He was first sent to Jamshedpur to work at Tata steel. He worked on the floor with the other blue collar employees, shoveling limestone and handling the blast furnaces.
Ratan N. Tata Mr. Muthuraman Mr. Nusli N. Wadia Mr. Iahaat Hussain Mr. Subodh Bhargava Mr. Jacobus Schraven Dr. Jamshed J. Irani Mr. Andrew Robb Mr. Palia Mr. Suresh Krishna Mr. Kirby Adams Mr. Nerurkar Kirby Adams Dr. Debashish Bhattacharjee Andrew Page Dr. Anjeneyan Helen Matheson Dr. Partnership with Corus On partnership with Corus group, the combined entity will be the 6th largest steel producer and the 2nd most geographically diversified steel company in the world.
Tata Steel, Thailand1. Low ash coal in Australia. Bar mill Merchant mill. The means envisaged to achieve this are high technology and productivity, consistent with modern management practices. VISSION: We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship We make the difference through: Our people, by fostering team work, nurturing talent, enhancing leadership capability and acting with pace, pride and passion. Our offer, by becoming the supplier of choice, delivering premium products and services, and creating value for our customers.
Our innovative approach, by developing leading edge solutions in technology, processes and products. Our conduct, by providing a safe working place, respecting the environment, caring for our communities and demonstrating high ethical standards. The division also operates a wholly owned subsidiary in Sri Lanka. Galvanized corrugated sheets. Re-bars It is the most valued brand in plumbing segment.
It has made deep inroads in the highly competitive auto market. It services requirements in a wide gamut of industries including automotive, agriculture, fencing and power.
Galvano offers commitment to deliver high performaces to meet diverse and stringent needs of the General Engineering Segment. TRF Ltd: An engineered-to-order equipment and systems provider. It manufactures, processes and distributes metal products as well as provides design, technology and consultancy services. These initiatives span the entire supply chain, from raw materials to logistics and value-added manufacturing. Company is executing a 2. The expansion project will involve setting up the following new facilities: a 3.
The configuration and capacity of these new facilities have been chosen with a strategic rationale. The Company continues to pursue its long-term strategy to build green field capacity in India, including in Orissa. Significant progress has been made by the management of the Joint Venture Company with Riversdale Mining in Mozambique towards the development of the Benga reserves, as is shown by the Benga Coal and Benga Power projects receiving environmental clearance.
The Company is also one of the largest shareholders in Riversdale Mining Limited, which is listed in Australia. Tata has made huge investments in politically unstable countries like Iran or Thailand. The company contributes to the nation by being a model in terms of corporate social responsibilities and citizen. Indeed, it is a way to face the political environment risks.
By acquiring Corus, Tata had gained the fifth place in world steel production. The fluctuations of the currency rates had been a risk for the Corus acquisition, which had thus been financed by amount of debt. Consequently, it broke Tata in its predicted investments and capacity expansions plans.
It was facing the fear for recession on negative economical growth. Then, the steel industry is really linked with the economical context. It means the steel industry production depends on energy prices; demand in the automotive market or in the construction market. It proves the good ethical behavior of the company and that CSR has a huge place in the business strategy.
Tata takes part in social development programs. For instance, the company helped gave medical treatment in rural areas and slums. Advances in technology India have really skilled specialists in different fields, especially in IT applications.
It means that it helps corporations to make savings on operating costs and to develop more efficient and effective ways of harvesting and processing the natural reserve. India Operations capable of meeting its own iron ore requirements. Raw material security building through global operations. Leading sales and distribution capability.
Low ware labor availability. Unscientific Mining. Low Productivity. China accounts for one third of total production i. The world steel industry outlook is promising with production seen rising to 1. The future outlook for the worldwide steel industry is very good. Demand is also seen growing with apparent steel use expected to total 1. China's apparent steel use is expected to grow by over 10 percent in and by 10 percent in China accounted for 35 percent of the world total this year.
In the European Union a total of million tonnes of steel were produced in , up 1. World steel production capacity is seen increasing by nearly 19 percent between and The steel industry has undergone a few structural changes in the past years. So, the outlook for the next few years is likely to be driven by the kind of consolidation that has taken place in the past few years.
The other factor that is likely to affect outlook is the extent of demand emerging from BRIC countries. In addition to these two major factors, a cost-push is coming from raw material suppliers. Hence, steel manufacturers have to contend with strong demand on one hand, and costpush on the other.
The outlook for the domestic industry looks bright, since India has good iron ore deposits skilled manpower and growing demand for steel.
There is an apprehension that if China slows down, it may dump its surplus steel into India. An analysis of global data shows that even if an economy slows down, steel consumption does not fall dramatically. But that doesnt mean growth will not take place. China produced around million tonnes mt of steel last year, out of which, 66 mt was exported and the rest was consumed within the country. The measures undertaken by the Chinese government recently will reduce exports significantly in the current year.
There is also a change in the consumption pattern. For instance, if construction activity slows down, the consumption of white goods will pick up and demand for flat steel products will go up.
The new capacities coming up in China are on the flat products side and not on the long products side. Overall, the impact on the supply side will be less. Since the cost of production is very high and exports are not allowed, many of these plants will be closed down by This will reduce the supply of steel.
Theres a feeling that India doesnt have much iron ore, considering the recent capacity expansion plans of domestic and foreign steel companies in India. There is a possibility that if we continue exporting iron ore, we may run out of reserves. Currently, we export mt ever year and this is steadily increasing. Ideally, we should increase our steel production capacity we are a net importer of steel so that rather than exporting iron ore, we can add value to it. India should also look at investing in exploring new mines.
Indian Steel Industry-An Overview India has traditionally been one of the major producers of steel in the world. Till the s the steel industry of India was regulated and controlled by government policies. After the economic reforms of the early s, the Indian steel industry has evolved significantly to conform to India has set a vision to be an economically developed nation by The steel industry is expected to play a major role in India's economic development in the coming years.
The steel industry of India has a very high growth potential and is expected to register significant growth in the coming decades. India is expected to emerge as a strong force in the global steel market in coming years. Major aspects that are expected to play a significant role in the growth of the steel industry in India are Construction Housing Ground transportation. Hi-tech engineering industries such as power generation, petrochemicals, fertilizers The current scenario of the Indian steel industry indicates that there is huge growth potential in this industry.
The per capita-consumption of steel in India, according to latest available estimates, is only 29 kg. This is much less compared to the global average of kg. The per capita consumption level of developed nations like the United States of America is kg.
In this respect, one of the major initiatives that need to be taken is to focus on increasing the consumption of steel in the rural areas of India. The potential for the growth of consumption of steel in the rural areas of India for purposes like rural housing, rural infrastructure, etc is high which needs to be tapped efficiently.
In order to realize the growth potential in the steel industry of India, it is essential to ensure that the industry can remain competitive. One of the major aspects in this regard is the availability of inputs. Shortage of inputs like coke has led to increase in costs earlier. Moreover proper infrastructure facilities like transport infrastructure, power etc are of prime importance in maintaining the competitiveness of the industry. This has helped in the growth of Indian steel industry.
The increased consumption of the finished steel products in the domestic market acted as a positive catalyst in the growth process of the Indian steel industry.
The favorable market condition has helped the companies operating in Indian steel industry to expand their operations and earn huge profit. India continually posts phenomenal growth records in steel production. In India produced Furthermore the steel production capacity of the country has increased rapidly since , India produced nearly Both primary and secondary producers contributed their share to this phenomenal development, while these increases have pushed up the demand for finished steel at a very stable rate.
In , a substantial number of economic reforms were introduced by the Indian government. These reforms boosted the development process of a number of industries the steel industry in India in particular which has subsequently developed quite rapidly. In , the total consumption of finished steel was In , the total amount of domestic steel consumption was With the increased demand in the national market, a huge part of the international market is also served by this industry.
Today, India is in seventh position among all the crude steel producing countries. The top companies of the Indian steel sector mostly operate in four different forms like producers of pig iron, producers of stainless steel, producers of finished steel products, and producers of semi-finished steel. The companies functional in the steel industry of India are both public sector companies and private sector companies.
The rate of production of steel in India has been going up at a steady rate in the last few years. In the recent times Orissa and Jharkhand have been identified as the potential steel destinations of India - the ones that would provide the Indian steel industry with its necessary raw material.
There are also a number of steel companies in India like Tata and Arcelor -Mittal that are either coming up or have established themselves as prominent forces in the world steel scenario. In the recent years a number of major steel corporations of the world have come flocking to India to avail the benefits of the flourishing steel industry of India.
The number of steel projects in India has increased as well and this implies that the number of companies lining up to participate in these projects would be increasing.
It was the vision and foresight of Mr. Jamshedji Nusserwanji Tata, that on 27th February, , the first stake was driven into the soil of Sakchi. His vision helped Tata steel overcome several period of adversity and strive to improve against all odd. He untiringly strove to create an organization that could provide India with the strength to stand on its own feet. Tata Steel is the worlds sixth largest steel company, with an annual crude steel capacity of 30 million tonnes per annum.
It is the second largest private sector steel company in India in terms of domestic production. Ranked th on fortune global , it is based in Jamshedpur, Jharkhand, India. Tata steel Jamshedpur India works has a crude steel production capacity of 6.
Through investments in Corus , millennium steel renamed Tata steel Thailand and Nat steel holdings, Singapore , Tata steel has created a manufacturing marketing network in Europe , south east Asia and the pacific rim countries. Tata steel has proposed a 0. Natsteel holdings produce about 2MTPA of steel products across its regional operations in seven countries. Tata steel has lined up a series of Greenfield projects in India and outside which includes: a 6 million tonnes plant in Orissa b 12 million tonnes plant in Jharkhand c 5 million tonnes plant in Chhattisgarh d 3 million tonnes plant in Iran e 6.
The iron ore mines and collieries in India give the company a distinct advantage in raw material sourcing. Tata Steel is also striving towards raw materials security through joint venture in Thailand, Australia, Mozambique, Ivory Coast and Oman. Tata Steel has signed an agreement with Steel Authority of India Limited to establish a joint venture company for coal mining in India. Also Tata Steel has brought Managing Director B. Muthuraman stated that of the million tonne, Tata Steel is planning a balance between greenfield facilities and acquisitions.
Overseas acquisitions have already added up to Tata is looking to add another 29 million tonnes through the acquisition route. We make difference through Our PEOPLE- By fostering team work, nurturing talent, enhancing leadership capability and acting with pace, pride and passion.
Our OFFER- By becoming supplier of choice, delivering premium products and services and creating value with our customers. Mission:Consistent with the vision and values of the founder, Jamshetji Tata, Tata Steel strives to strengthen Indias industrial base through the effective utilization of staff and materials, the means envisaged to achieved this are high technology and productivity, consistent with modern management practices.
Tata Steel recognizes that while honesty and integrity are the essential ingredients of a strong and stable enterprise, profitability provides the main spark for economic activity. Overall, the company seeks to scale the heights of excellence in all that it does in an atmosphere free from fears, and thereby reaffirms its faith in democratic values.
The high quality of the product makes them the 1st choice in agricultural equipment procurement both in public and in private sector. TATA bearing and auto components happen to be the preferred choice of the key players in the targeted industry segment. Rebar from the long Product Division are produced under the brand name Tiscon and are the 1st of its kind to have been introduced in India Tiscon has been the 1st rebarin the country to be awarded the super brand status in the constant rebar category.
The companys long term strategy has been designed to have greater control over raw material. A wide range of wires manufactured by TATA STEELs wire division cater to the needs of the various industry segments such as automobiles, infrastructure, power and general engineering. Modern EAF has features such as high transformer capacity, Oxygen lances, Oxy fuel burners, coal injection system, bottom purge holes, water cooled boxes above the slag line, water cooled roof, EBT eccentric bottom tap hole , Charge hoppers with vibrators etc.
To reduce the power consumption, hot DRI directly reduced iron charging facility is available in modern furnaces. EAF process uses predominantly scrap. DRI is used when the scrap is not available. It employs hot metal, scrap and DRI to different proportions as per their availability. BOF is a very widely used0 process and does not require external heat, as the process utilises the heat generated by the exothermic reactions during the melting operation.
Hot metal and scrap are used for melting. Oxygen is blown through a multi-hole lance to carry out the refining operation. Modern converters have tueyers at the bottom through which Argon or Nitrogen gas is purged. Instrumentation in LD has improved for better productivity. Developments include better multi-hole lances, improvement of blow profile by mathematical models, and use of Magcarb bricks to improve the lining life.
Some of the developments in steel making process at Tata Steel include a Stack temperature measurements, b suitable flux practices, c installation of sub lance, d Development of SMART lance, e practices to avoid the converter slag in to steel ladle at the time of tap, f Auto alloy additions, g bottom purging of steel ladle etc.
Secondary refining technology for the production of special grade steels has been introduced. Continuous Casting Technology Continuous casting technology has replaced ingot technology, resulting in higher yield and a substantial increase in productivity and quality.
Thin slab casting and strip casting have also been developed to reduce overall CAPEX cost of steel production. Hot Rolling Technology Developments in Hot rolling technologies include:. Implementation of High performance descalers Water pressure: bar for better removal of furnace scale prior to rolling. Instituting Vertical Edgers and short stroke hydraulic cylinders for better width control of the finished product. Development of Semi HSS and oil lubrication in improving the productivity and quality performance of the roughing stand of the hot strip mill.
Introduction of heat shield, edge heating by Induction heaters prior to finish rolling, semi continuous rolling, coil box etc. Some of the developments implemented in the finishing mill include: o o o o o o o o o. Development of 6 HI mills for rolling coils with excellent shape control. These mills achieve heavy reduction per pass higher productivity with good thickness and flatness controls. PLTCM pickling line and Tandem Cold mill converts hot rolled coils to cold rolls continuously in a very short period of time.
High Productivity and good quality are achieved in these mills. The modern mills have auto shape and hydraulically controlled AGC auto gauge control. Work rolls and the intermediate rolls are bent to obtain the desired roll gap profile. Pickling facility is equipped with tension leveller to loosen the scale and improve the strip shape prior to pickling. Hot hydrochloric acid is used to obtain complete removal of surface scale of hot rolled coil prior to cold rolling.
Some of the modern pickling lines use Turbo pickling to hasten the scale removal. Single stand reversing mills are available for the production level of TPA. The concept of twin stand mill has been developed to meet the intermediate production capacity around 0.
Modern pickling units are equipped with ARP acid regeneration plant to regenerate the acid thereby reducing pollution. The concept of twin stand mill has got developed to meet the intermediate production capacity around 0. Electrolytic cleaning line removes the rolling oil, which is present on the cold rolled surface. The facility helps to achieve clean and bright surface after cold rolling. There are two types of annealing Batch Annealing and Continuous Annealing.
Batch Annealing is chosen when the volume involved per size is small fragmented orders. Pure Hydrogen is preferred in modern annealing furnaces because of superior heat transfer; higher annealing base productivity and good CR surface quality.
Continuous annealing line generally has capacity 0. Because of higher productivity, many integrated steel plants prefer continuous annealing. The mechanical properties and surface quality of CR coils are good and consistent. High strength steels can be produced by only CAL process. Galvanising is a process by which the steel is coated by passing it through a molten zinc bath.
The coating thickness is controlled by wiping with air or nitrogen, when the strip comes out of the zinc bath. Zinc coating on steel prevents the corrosion of iron by sacrificial protection Cathodic Protection.
Steel analysts are expecting new wave of consolidation to take place in the next three years. Global giants are re focussing on positive markets by applying their resources to the core business where they are most needed. This creates opportunities to gain more market share from competitors who diversify and spilt their focus. Acquisition and strategic alliances are also critical to strengthen, refocus and position companies for increased growth and profitability.
The Tata Steel group is strongly pursuing its long term strategy for acquiring and developing mining projects for its raw material security for iron ore and coking coal. The group has been concentrating in the geographies that are logistically favourable with respect to its plan in Europe and Asia. Value creating partnership with suppliers. Improve the quality of life of the communities we serve.
Corus is Europes second largest steel producer. With main steelmaking operations in the UK and the Netherlands, Corus supplies steel and related services to the construction, automotive, packaging, mechanical engineering and other markets worldwide. Headquartered in Bangkok, Tata Steel Thailand is a major steel producer in Thailand and is the largest producer of long steel products with a manufacturing capacity of 1.
NatSteel Holdings is headquartered in Singapore and is a leading supplier of premium steel products for the construction industry. NSH produces about 2 MT of steel products annually across its regional operations. The plant is slated to be commissioned by October with an annual production capacity of , tonnes during Phase I. The company was also recognised as the worlds best steel producer by the world steel Dynamics in The company is listed in Bombay stock exchange and National stock exchange.
Established in , it is the first integrated steel plant in Asia and now in the worlds second most geographically diversified steel producer and a Fortune company. Mr Muthuraman told reporters that "India demand grew by 5. So we actually took higher market share. It is because of the product and service quality. He said that during the first quarter this fiscal, sales the firm's domestic operations rose from 1.
However, sales in monetary terms came down to INR 5, crores in the period under review from INR 6, crore in the first quarter of due to falling steel prices. He said that there is a considerable scope to create value in steel by providing quality products and quality service adding that focus on quality and branding resulted in rich dividends to the company compared to other players. Stating this, Mr B.
It may be mentioned here that hot rolled products such as plates, sheets and coils are widely traded all over the world because of their varied applications.
Hence they are used as the industry benchmark. Mr Muthuraman said the company had launched several initiatives to reduce costs right from the mining of coal to procurement of raw materials. Moreover, outsourcing of those activities that do not form the core of Tata Steel's business was also progressing well.
Kearney had been appointed consultants for helping out the company with its efforts in this direction. Beginning from this year, Tata Steel, one of India's most respected companies, embarked on its journey to become an EVA positive company.
EVA, or economic value addition a relatively new concept in the corporate world , is the difference between the return on net assets and the weighted average cost of capital multiplied by the invested capital. Mr Muthuraman said that there were only a handful of steel companies in the world who have a positive EVA and as of now Tata Steel was not among them. To become an EVA positive company Tata Steel would "mobilise all its resources and efforts through value-based management that will help the company earn better returns than the cost of capital.
Tata Steel expects to complete the journey in about three years time. With the progress made in this direction in the last few months it looks possible to achieve it ahead of the target. Alongside its journey towards transforming itself from an EVA negative to a EVA positive status, Tata Steel is laying special emphasis on another area managing knowledge, according to Mr Muthuraman.
Knowledge is being regarded in the 21st century as the fourth factor of production the three conventional ones being land, labour and capital. The central theme of knowledge management is to leverage knowledge and reuse knowledge resources that already exist in a company so that people seek out best practices rather than reinvent the wheel.
Referring to the current year, the Tata Steel Managing Director said that production and market reports were good and hot metal production would be more than the targeted amount.
The company had improved its product mix and would be selling more of branded products. To a question on future growth areas, he said that entry into some non-steel areas was still being probed. On acquisitions he said that the company as part of its EVA positive enterprise would look out for acquisitions as a means to enhance shareholder value. In the five years, we can see highly fluctuating figures of net working capital.
In the year the net working capital is moderately low but positive. But in the year , the figure falls and becomes negative. This is because of fall in the amount of loans and advances by almost crores. In the subsequent years, the net working capital becomes positive and also improves.
In the net working capital increases to The increase is majorly due to increase in inventories, loans and advances and cash and bank balances. Changes in Net working capital This indicates poor working capital management of the company. The fall is basically due to increase in the provisions in the two years. In the year , the net working capital increases and becomes positive indicating improved working capital management.
The raise is due to increase in inventories, cash and bank balances and loans and advances. In , it has decreased by Contrary to this, the ratio increased by The fall was due to increase in current liability as well as decrease in fall in cash balance of TATA STEEL, which indicates that the company maintains low cash balance for the company.
In the ratio has increased by In the ratio has crossed the standard of which is a good sign for the company. This increase in quick ratio was due to increase in liquid assets and the reason behind this increase was increase in value of stock as compared to previous year. In the year , the increase is by 6. In spite of increase in the gross profit, the ratio falls because the total amount of sales also increases. But in the year the ratio increases by There is a positive change increase in the year by 6.
Although the sales are increasing, the proportionate increase in operating profit is much more in The above chart and table of Tata steel ltd. In , the sales has increased but the debtor has decreased, this shows that Tata Steel has concentrated more on cash sales and this has resulted in an increase in the ratio, which is very good sign for further short term investment or for purchasing stocks.
Creditors turnover ratio denotes that in how quickly a company is able pay back its suppliers. So higher the Creditors turnover ratio better it is for the manufacturing company as well as the supplier, as they can maintain a better relationship between them.
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