Tata Steel - Company Profile 6i1j4s

Tata Steel Group

Company Profile Publication Date: 4 May 2010

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Tata Steel Group

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Tata Steel Group TABLE OF CONTENTS

TABLE OF CONTENTS Company Overview..............................................................................................4 Key Facts...............................................................................................................4 Business Description...........................................................................................5 History...................................................................................................................7 Key Employees...................................................................................................11 Key Employee Biographies................................................................................12 Major Products and Services............................................................................21 Revenue Analysis...............................................................................................23 SWOT Analysis...................................................................................................24 Top Competitors.................................................................................................30 Company View.....................................................................................................31 Locations and Subsidiaries...............................................................................33

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Tata Steel Group Company Overview

COMPANY OVERVIEW Tata Steel Group is one of India's largest integrated private sector steel companies. The group manufactures and distributes steel, welded steel tubes, cold rolled strips, bearings, and other related products. Tata Steel Group operates across Asia, Europe, and Australia. Tata Steel Group is headquartered in Mumbai, India and employs about 86,600 people. The group recorded revenues of INR1,473,292.6 million (approximately $32,147.2 million) in the financial year ended March 2009 (FY2009), an increase of 12% over FY2008. The operating profit of the group was INR141,279.5 million (approximately $3,082.7 million) in FY2009, compared with an operating profit of INR 141,213.4 million (approximately $3,081.3 million) in FY2008. The net profit was INR49,509 million (approximately $1,080.3 million) in FY2009, a decrease of 59.9% compared with FY2008.

KEY FACTS Head Office

Tata Steel Group Bombay House 24 Homi Mody Street Mumbai 400 001 IND

Phone

91 22 6665 8282

Fax

91 22 6665 7724

Web Address

http://www.tatasteel.com

Revenue / turnover 1,473,292.6 (INR Mn) Financial Year End

March

Employees

86,548

Bombay Ticker

500470

Indian National Stock Exchange Ticker

TATASTEEL

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Tata Steel Group Business Description

BUSINESS DESCRIPTION Tata Steel Group is a private sector steel group in India. It is the world's sixth largest steel company with capacity of 31 million tones per annum (tpa). Set up as Asia's first integrated steel plant and India's largest integrated private sector steel company, it is the world's second most geographically diversified steel producer, with operations in 26 countries and commercial presence in more than 50 countries. The group operates across Asia, Europe, and Australia. Tata Steel Group operates through two segments: steel and others. The steel segment comprises the subsidiaries, Tata Steel India, Tata Steel Europe, NatSteel Holdings, and Tata Steel (Thailand) Public Company. Tata Steel India produces hot metal, crude steel, and saleable steel. In FY2009, it produced 6.25 million tonnes (mt) of hot metal, 5.65 mt of crude steel, and 5.37 mt of saleable steel. Tata Metaliks, a subsidiary of Tata Steel India, is engaged in the business of manufacture and sale of pig iron. It operates two plants and has an annual total capacity of 650,000 tonnes. Tata Metaliks’s plants are located at Kharagpur (West Bengal, India) and Redi (Maharashtra, India) and consist of five mini blast furnaces and related facilities including captive power plants. Tata Metaliks also has a t venture called Tata Metaliks Kubota Pipes with Kubota Corporation, Japan for producing ductile iron pipes with an annual capacity of 110,000 tonnes. Tata Steel Europe operates through Corus, a subsidiary of Tata Steel Group. Corus is Europe's second largest steel producer with a crude steel production of more than 20 million tonnes. Corus has three main operating divisions: strip products, long products and distribution and building systems. Europe, principally the European Union (EU), is the most important market for Corus for both its steel and aluminum products. Principal end markets for Corus steel products are the construction, automotive, packaging, mechanical and electrical engineering, metal goods, and oil and gas industries. Corus has manufacturing operations in many countries with major plants located in the UK, the Netherlands, , , and Belgium. NatSteel Holdings, a 100% subsidiary of the Tata Steel Group, has presence in Singapore, China, Vietnam, Australia, and the Philippines. It produces products used in the construction of residential, industrial, and commercial buildings, as well as infrastructural works. The Singapore operations consist of steelmaking and rolling operations of capacity of 750,000 tpa, and downstream business. The downstream facility has a total production capacity of 750,000 tpa, including one of the largest single cut-and-bend operations in the world. NatSteel Asia operates two units in China comprising a rolling mill at Xiamen with a capacity of 500,000 tpa and a wire drawing plant at Wuxi with a capacity of 100,000 tpa.

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Tata Steel Group Business Description

In Vietnam, NatSteel is a 55% equity partner in a t venture with VN Steel and has a capacity of 130,000 tpa. In Australia, the downstream business has a capacity of 250,000 tpa. In Philippines, NatSteel is a 40% partner in the t venture with a capacity of 350,000 tpa. Tata Steel Group has 67.1% equity in Tata Steel (Thailand) Public Company (TSTH). TSTH, headquartered in Bangkok, has three main subsidiaries: Siam Iron and Steel Company (SISCO), NTS Steel Group (NTS), and The Siam Construction Steel Company (SCSC). TSTH manufactures long steel products and has an installed capacity of 1.7 million tonnes per annum. It is also currently setting up a mini blast furnace with an annual production capacity of 500,000 tons of hot metal.

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Tata Steel Group History

HISTORY Tata Steel Group's (Tata Steel) predecessor, Tata Iron and Steel Company, was established in 1907 as Asia's first private sector steel company. The company set up its first iron and steel plant in Jamshedpur, India, which began production in 1912. Over the century, the company became one of the most modern integrated steel plants in the world with up-to-date technology, facilities, business processes, and systems. It also acquired a number of subsidiaries/associates including: The Tinplate Company of India, Tayo Rolls, Tata Ryerson, Tata Refractories, Tata Sponge Iron, Tata Metalliks, Tata Pigments, Jamshedpur Injection Powder, TM International Logistics, Indian Steel and Wire Products, metaljunction.com, Dhamra Port, TRF, Jamshedpur Utility and Service Company, Hooghly Met Coke and Power, Tata BlueScope, Lanka Special Steel, and Sila Eastern Company. In 2002, Tata Steel acquired sophisticated research and development instruments for auto industry. Subsequently, the company signed a memorandum of understanding (MoU) with the government of Tamil Nadu for manufacture of titanium dioxide. In the same year, it also signed the automotive steel technology cooperation agreement with Nippon Steel Corporation of Japan and Arcelor of Europe, to work tly on technical developments. Tata Steel launched its first branded cold rolled steel called Tata Steelium in 2003. In 2004, the company entered the global minerals business. In the same year, the company sold its 54.9% stake in Stewarts and Lloyds of India to Indian Oiltanking (IOTL). Further in 2004, the company diversified into offering business software solutions in partnership with SAP India. Towards the end of the year, Tata Steel signed a MoU with the Government of Orissa (a state in India) for setting up a six million ton green-field integrated steel plant at Kalinganagar in Jajpur district of Orissa. In early 2005, Tata Steel acquired Singapore-based steel company NatSteel by subscribing to 100% equity of NatSteel Asia, which had steel assets in Singapore, Malaysia, Thailand, Vietnam, the Philippines, Australia, and China. Subsequently, the company signed an agreement with West Bengal Industrial Development Corporate (WBIDC) to setup a t venture company known as the Hooghly Met Coke and Power Company (HMCL). In addition, it signed a MoU with the Government of Chhattisgarh (a state in India) for setting up five million tons per annum greenfield integrated steel plant in the Bastar region of Chhattisgarh. In mid 2005, the company signed a t venture agreement with Iranian Mines & Mining Industries Development & Renovation Organisation (IMIDRO) to assist in steel-making projects and mining operations in Iran. Further in 2005, Tata Steel and BlueScope Steel agreed to enter into a partnership and form a new t venture company in India. The t venture company would build a new business across India and South Asia for manufacturing zinc/aluminum metallic coated steel, painted steel and roll formed steel products, and delivering pre-engineered buildings (PEBs) and other building solutions. In the

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Tata Steel Group History

same year, Tata Steel completed the acquisition of a 67.1% stake in Millennium Steel, one of the largest steel companies in Thailand with a capacity of 1.7 million tpa. In 2006, Tata BlueScope Steel, a 50:50 t venture between Tata Steel and Australia's BlueScope Steel, inaugurated its first rollforming and pre-engineered building facility near the IT Park at Hinjewadi, Pune. In the same year, the company entered into South Africa with the construction of its ferrochrome plant. Further in 2006, Tata Steel and Nippon Yusen Kabushiki Kaisha (NYK Line) entered into a t venture agreement for setting up a shipping company to cater to dry bulk and break bulk cargo. In early 2007, Tata Steel, through its wholly-owned subsidiary NatSteel Asia (NSA) entered into an agreement to acquire controlling equity stake in two rolling mills located in Haiphong, Vietnam. Subsequently, the company acquired 100% of equity stake in Rawmet Industries. In the same year, the company through its subsidiary, Tata Steel UK, acquired Corus Group, Europe's second largest steel producer. Further in 2007, Vietnam Steel Corporation, a Vietnam-based steel company, signed a MoU with Tata Steel for a proposed steel complex with an estimated capacity of 4.5 million tpa. Subsequently, the Government of Tamil Nadu signed a MoU with Tata Steel, for Tata Steel's titanium oxide project in Tuticorin District of Tamil Nadu. Later in 2007, Tata Steel and Riversdale Mining (Riversdale), an Australian based company, entered into a MoU under which Tata Steel would acquire a 35% stake in Riversdale's Mozambique Coal Project for A$100 million (approximately $86.8 million). The Mozambique Coal Project included the coal tenements of hard coking coal in Benga and Tete, located in the Tete province in Mozambique, which were fully owned by Riversdale through its subsidiary. Towards the end of 2007, Tata Steel and SODEMI (state owned company for mineral development) entered into a t venture agreement for the development of Mount Nimba Iron ore deposits in Ivory Coast (West Africa). Tata Steel and Steel Authority of India (SAIL) signed an agreement to establish a 50:50 t venture company for coal mining in India, in early 2008. The t venture would identify, acquire, and develop coal blocks in India. Subsequently, Tata Steel entered in to a t venture agreement with Al Bahja Group for the development of the Uyun Limestone deposits at Salalah in Oman. Further in 2008, Tata Steel announced that it would set up a t venture with MMTC for acquisition of mining projects in India and overseas. The t venture, in which the company would hold a 74% stake and MMTC the remainder, would focus on African countries, such as Angola and Namibia, and central Asian countries like Kazakhstan and Uzbekistan to bid for gold and diamond mines, and acquire coal and iron ore mines. Subsequently, Tata Steel signed a t venture pact with Jasper Industries to establish a coal-based power plant in the eastern state of Orissa. Later in 2008, Tata Steel, through its wholly owned subsidiary, Tata Steel Global Holding in Singapore, signed a t venture agreement with Vietnam Steel Corporation and Vietnam Cement Industries Corporation for a steel complex in Ha Tinh province in Vietnam. The company would own 65% stake

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Tata Steel Group History

in the steel complex project. In addition, Tata Steel would own a 30% stake in Thach Khe Iron Ore t Stock Company which would undertake mining in the Thach Khe iron ore mine. The steel plant was estimated to cost $5 billion. Subsequently, Tata Steel and Nippon Steel Hardfacing Company (NSH) signed an agreement on the transfer of overlay welding technology for surface conditioning of steel rolls used at different steelmaking processes. In the same year, Tata Steel announced the setting up of a new blast furnace at its Jamshedpur works unit as part of the INR140,000 million (approximately $3,477.6 million) brownfield expansion to augment its production capacity to 10 million tonne (MT) in over two years. Towards the end of 2008, the Liberian Government cleared Tata Steel of all allegations concerning involvement in any acts of impropriety, and invited it to the bidding process for the Western Cluster iron ore project in the country. In January 2009, Corus, the European business of Tata Steel, announced a series of strategic measures focusing on divestments, asset restructuring, and a company-wide efficiency and overhead review, to improve its competitive position. Subsequently, Corus, Marcegaglia, and Dongkuk Steel Mill signed a MoU under which Marcegaglia and Dongkuk would tly acquire a majority stake in Corus’ Teesside Cast Products business (T). In April 2009, Corus opened a new service centre in China, Aerospace Service Centre Suzhou, to supply the country’s growing aerospace industry. In May 2009, Tata Steel signed a MoU with the Department of Labour, Employment, and Training, Government of Jharkhand, to set up an industrial training centre at Tamar, Jharkhand. In July 2009, Corus announced proposals to improve the competitiveness of its Scunthorpe site in North East England, the UK, by aligning employment cost with anticipated steel demand. Subsequently, Tata Steel Global Minerals Holdings, an indirect wholly owned subsidiary of Tata Steel, acquired additional shares in Riversdale increasing its stake to 19.38%. In the same month, the Board of Directors of Tata Steel and HMPCL approved the merger of HMPCL with Tata Steel. The company held 100% of the share capital of HMPCL. In October 2009, Tata Steel and MMTC signed an agreement to establish a 74:26 t venture company for acquiring, development and operation of mines and processing of minerals and metals. In the following month, Tata Steel, through its subsidiary, Tata Steel Global Minerals Holdings, entered into t venture agreement with New Millennium Capital and LabMag Limited Partnership for development of the Direct Shipment Ore (DSO) Project in Canada. In December 2009, Corus announced an investment of E35 million (approximately $48.8 million) at its rail production facility in Hayange, , after securing a major new contract with the French railway operator SNCF. The company secured a contract worth about E350 million (approximately $488.1 million) to supply rails for up to six years to SNCF for the renewal and maintenance of the Reseau Ferre de (RFF) tracks.

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Tata Steel Group History

In January 2010, Tata Steel and NMDC signed a MoU for exploring possibilities of a strategic alliance to enhance iron ore resources. In the same month, the Tata Steel board approved a framework for a t venture with Nippon Steel Corporation (NSC) for the production and sales of automotive cold-rolled flat products at Jamshedpur, Jharkhand, India, to address the localization needs of Indian automotive customers for high-grade cold-rolled steel sheet. Tata Steel would hold 51% stake and NSC 49% in the t venture.

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Tata Steel Group Key Employees

KEY EMPLOYEES Name

Job Title

Board

Hemant M. Nerurkar

Managing Director

Executive Board

Kirby Adams

Chief Executive Officer and Managing Director, Tata Steel Europe

Executive Board

Ratan N. Tata

Chairman of the Board of Directors Non Executive Board

20320000 INR

B. Muthuraman

Deputy Chairman of the Board of Directors

Non Executive Board

50721000 INR

Nusli Neville Wadia

Non Executive Director

Non Executive Board

3640000 INR

S. M. Palia

Non Executive Director

Non Executive Board

6560000 INR

Suresh Krishna

Non Executive Director

Non Executive Board

1110000 INR

Ishaat Hussain

Non Executive Director

Non Executive Board

6490000 INR

Jamshed J. Irani

Non Executive Director

Non Executive Board

2820000 INR

Subodh Bhargava

Non Executive Director

Non Executive Board

4340000 INR

Jacobus Schraven

Non Executive Director

Non Executive Board

1100000 INR

Andrew Robb

Non Executive Director

Non Executive Board

1260000 INR

Abanindra M. Misra

Vice President, CSI and IR

Senior Management

4398628 INR

Anand Sen

Vice President, TQM and Shared Services

Senior Management

5116877 INR

Bimlendra Jha

Vice President, Long Products

Senior Management

2239353 INR

Hridayeshwar Jha

Vice President, Orissa Project

Senior Management

3378079 INR

Koushik Chatterjee

Group Chief Financial Officer

Senior Management

6050380 INR

N. K. Misra

Vice President and Group Head, Mergers and Acquisitions

Senior Management

3009162 INR

Partha Sengupta

Vice President, Raw Materials

Senior Management

2985896 INR

Radhakrishnan Nair

Chief Human Resource Officer

Senior Management

4114234 INR

Sanjiv Paul

Vice President, Corporate Services Senior Management

T. V. Narendran

Vice President, Safety and Flat Products

Senior Management

Varun K. Jha

Vice President, Engineering and Chattisgarh Project

Senior Management

A. Anjeneyan

Company Secretary

Senior Management

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Compensation

5269268 INR

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Tata Steel Group Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES Hemant M. Nerurkar Board: Executive Board Job Title: Managing Director Since: 2009 Age: 60 Mr. Nerurkar has been the Managing Director at Tata Steel Group since 2009. He has been the Executive Director of India and South East Asia at Tata Steel since 2009. Mr. Nerurkar also serves as the Vice President of Kalinganagar Project, Orissa. He ed Tata Steel in 1982 and has held various positions including Chief Metallurgist, Senior Deputy Manager (LD-2 Projects), Deputy General Manager (Steel and Primary Mills), General Manager (Marketing), Senior General Manager (Supply Chain) and Chief Operating Officer (Steel). He has over 35 years of experience in steel industry in various functions. Mr. Nerurkar is an executive with multifaceted experience ranging from project execution, manufacturing, Quality Control, Supply Chain and Marketing. He became the Vice President (Flat Products) in 2002 and in 2007 was appointed Chief Operating Officer (Steel). Currently, Mr. Nerurkar serves as the Chairman at TM International Logistics, Tata Metaliks, Centennial Steel, and JAMIPOL. He is also the Vice Chairman at Tata Steel (Thailand) Public Company, and a Director at NatSteel Asia, NatSteel Holdings, and Tata BlueScope Steel.

Kirby Adams Board: Executive Board Job Title: Chief Executive Officer and Managing Director, Tata Steel Europe Since: 2009 Mr. Adams has been the Chief Executive Officer and Managing Director at Tata Steel Europe, a subsidiary of Tata Steel Group, since 2009. He has been the Chief Executive Officer at Corus Group since 2009 and is also its Managing Director. Previously, Mr. Adams was the Managing Director and Chief Executive Officer at Bluescope Steel (formerly BHP Steel) from 2002 to 2007. Previously, he had served in various positions at BHP Billiton including the President at BHP Services, Group General Manager and as the Chief Executive Officer at BHP Service Companies.

Ratan N. Tata Board: Non Executive Board Job Title: Chairman of the Board of Directors

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Tata Steel Group Key Employee Biographies

Mr. Tata is currently the Chairman of the Board of Directors at Tata Steel Group. He is the Chairman at Tata Sons, the holding company of the Tata Group. Mr. Tata ed Tata Steel in 1962. After serving in various other Tata companies, he was appointed Director-in-charge at National Radio & Electronics Company (NELCO) in 1971. In 1981, he was named the Chairman at Tata Industries, the second Tata promoter company. Currently, Mr. Tata serves as a Director at The Bombay Dyeing & Manufacturing Company, Haldia Petrochemicals, Antrix Corporation, and Varuna Overseas, UK.

B. Muthuraman Board: Non Executive Board Job Title: Deputy Chairman of the Board of Directors Age: 64 Mr. Muthuraman is currently the Vice Chairman of the Board of Directors at Tata Steel Group. He ed Tata Steel in 1966 as a graduate trainee. Between 1968 and 1976, he worked in the areas of iron making and engineering development. Later, Mr. Muthuraman was transferred to the marketing and sales division of the company. he became the Director of Marketing in 1991 and Vice President (Marketing and Sales) in 1994. Mr. Muthuraman was made Executive Director for Special Projects in 2000. He was appointed the Managing Director of the company in 2001. Currently, Mr. Muthuraman serves as the Chairman at Natsteel Asia, Tata Steel (Thailand) Public Company and The Tinplate Company of India. He is also a Director at Tata - New York, Director, Tata International, Tata Industries, and MICO Industries.

Nusli Neville Wadia Board: Non Executive Board Job Title: Non Executive Director Mr. Wadia is currently a Non Executive Director at Tata Steel Group. He is the Chairman and Managing Director at Nowrosjee Wadia & Sons. He is also the Chairman at The Bombay Dyeing & Manufacturing, Gherzi Eastern, The Bombay Burmah Trading, B R T, N W Exports, Britannia Industries, Leila Lands (Malaysia), National Peroxide, Citurgia Biochemicals, and Wadia BSN India. Mr. Wadia serves as a Director at Anil Starch Products, Tata Chemicals, Atul Products, Naira Holdings (B.V.I.), The Radley Cotton Mills (Canada), ABI Holdings (UK), and Associated Biscuits International (UK).

S. M. Palia Board: Non Executive Board Job Title: Non Executive Director Mr. Palia is currently a Non Executive Director at Tata Steel Group. From 1964 to 1989 he held various responsible positions at IDBI including that of an Executive Director to the Company. He also serves as the Director at SBI Home Finance, Gujarat Venture Finance, Champdany Industries,

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Tata Steel Group Key Employee Biographies

IFB Finance, Kalyanpur Cements, GRUH Finance, Down Town Hospitals, Financial and Management Services, Canbank Venture Capital Fund, Saline Area Vitalisation Enterprises, North Eastern Development Finance, and Shibir India.

Suresh Krishna Board: Non Executive Board Job Title: Non Executive Director Mr. Krishna is currently a Non Executive Director at Tata Steel Group. He is also the Chairman and Managing Director at Sundram Fasteners and the Chairman at Sundram Clayton, Upaasana Finance, Sundram Telematics, Sundram Non-Conventional Energy Systems, Sundram Numeric, and Unipaat. Mr. Krishna also serves as the Director at Lucas, TVS Sundram Iyengar and Sons, and TVS Sewing Needles.

Ishaat Hussain Board: Non Executive Board Job Title: Non Executive Director Mr. Hussain is currently a Non Executive Director at Tata Steel Group. He graduated in Economics from St Stephens College, New Delhi. He is a fellow of the Institute of Chartered ants in England and Wales (FCA). He ed the Board of the Indian Tube Company (a Tata Steel associate company) in 1979. His ed Tata Steel in 1981, when Indian Tube merged with Tata Steel. He was the Senior Vice President and Executive Director of Finance at Tata Steel for almost 10 years, before he finally moved to Tata Sons.

Jamshed J. Irani Board: Non Executive Board Job Title: Non Executive Director Dr. Irani is currently a Non Executive Director at Tata Steel Group. He ed The Tata Iron and Steel Company (TISCO) as Assistant to Director, Research & Development. He was appointed the General Superintendent in 1978, the General Manager in 1979, the President in 1985 and the Managing Director in 1992. After holding the Chief Executive Officer's office for almost a decade, he retired as the Managing Director at Tata Steel in 2001. Currently, Dr. Irani serves as the Chairman at Tata Refractories, TRF, and Kansai Nerolac Paints. He is a Director at Tata Sons, Tata Motors, Tata Teleservices, BOC (India), Electrosteel Castings, and Repro India.

Subodh Bhargava Board: Non Executive Board

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Tata Steel Group Key Employee Biographies

Job Title: Non Executive Director Since: 2006 Mr. Bhargava has been a Non Executive Director at Tata Steel Group since 2006. He was the Group Chairman and Chief Executive Officer at the Eicher Group of companies. Currently, he serves as the Chairman Emeritus of Eicher. Mr. Bhargava was the President of the Confederation of Indian Industry in 1994 and 1995, the President of the Association of Indian Automobile Manufacturers from 1993 to 1994, and the Vice President of the Tractor Manufacturers Association from 1991 to 1992. He has held positions with various state governments, including as a member of the Insurance Tariff Advisory Committee and the Economic Development Board of the State of Rajasthan. Mr. Bhargava is currently a Director at VSNL, Wartsil Industries, Samtel Colour, Rane Engines Valves, TRF, SRF, Batliboi, and DCM Engineering.

Jacobus Schraven Board: Non Executive Board Job Title: Non Executive Director Age: 65 Mr. Schraven is currently a Non Executive Director at Tata Steel Group. Prior to this, he was appointed a Non Executive Director and the Deputy Chairman at Corus in 2004. Additionally, in 2005, he was appointed a member and the Chairman of the Supervisory Board at Corus Nederland. Until 2005, he was the President of the Confederation of the Netherlands Industry and Employers (VNO-NCW). Currently, Mr. Schraven is a member of the Supervisory Boards of NUON, Oranje Nassau Groep and Fortis OBAM. He is also the Chairman of the Board of Trustees at the Erasmus Rotterdam Medical Centre and at the Netherlands Normalisation Institute (NEN).

Andrew Robb Board: Non Executive Board Job Title: Non Executive Director Since: 2007 Mr. Robb has been a Non Executive Director at Tata Steel Group since 2007. He ed the board of Corus Group and became the Chairman of the Audit Committee in 2003. Following the takeover of Corus by Tata Steel in 2007 Mr. Robb remained on the Board. He served as the Financial Controller and Finance Director at Peninsular & Oriental Steam Navigation since 1983 and then became the Finance Director at Pilkington from 1989 to 2001. Mr. Robb served as a Director at Pilkington Group until 2003. He has been the Chairman of the Board at Corus Group since 2009 and its Independent Director since 2003. Currently, Mr. Robb serves as a Director at Kesa Electricals, PayPoint, Laird, and Yaohua Pilkington Glass Company.

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Tata Steel Group Key Employee Biographies

Abanindra M. Misra Board: Senior Management Job Title: Vice President, CSI and IR Since: 2010 Age: 57 Mr. Misra has been the Vice President for CSI and IR at Tata Steel Group since 2010. Prior to this appointment, as the Vice President for Raw Materials and Coke, Sinter & Iron he had been in charge of the Mines and Collieries, Ferro Alloys Division and also the Iron Making Division. He ed Tata Steel in 1973 as a graduate trainee. Mr. Misra was the Vice President for Human Resources during his long years of service. He had worked in the operations of Steel Plant for many years in various capacities such as Technical Officer and Divisional Manager for Foundries. In 2002, he was appointed as the General Manager for West Bokaro Colliery Division at Tata Steel. He is currently the Chairman at Tata Steel KZN, South Africa, Tata Sponge Iron and at Rawmet Ferrous Industries, Orissa. He is also the Chairman at Indian National Suggestion Schemes Association (INSSAN), Eastern India Council. He had also been the Chairman at the Institute of Indian Foundry men, Jamshedpur Chapter and the Chairman at CII Bokaro & Dhanbad Council in the past.

Anand Sen Board: Senior Management Job Title: Vice President, TQM and Shared Services Since: 2010 Age: 50 Mr. Sen has been the Vice President for TQM and Shared Services at Tata Steel Group since 2010. Previously, he was the Vice President for TQM and Flat Products Division. Mr. Sen started his career as a graduate trainee at Tata Steel in 1981 and worked in Scientific Services initially. In 1984, he was selected as an Application Engineer and was posted to Mumbai. In 2001, he was placed as the Chief of Marketing and Sales for Flat Products.

Bimlendra Jha Board: Senior Management Job Title: Vice President, Long Products Since: 2010 Age: 41 Mr. Jha has been the Vice President for Long Products at Tata Steel Group since 2010. Previously, he was the Principal Executive Officer in Managing Director’s Office, Tata Steel. Mr. Jha has extensive

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Tata Steel Group Key Employee Biographies

experience in the areas of steel plant refractories, steel marketing and sales, business process re-engineering, brand management, change management and managing multi-project environment in equipment manufacturing. He currently serves as a Director at JAMIPOL and The Dhamra Port Company.

Hridayeshwar Jha Board: Senior Management Job Title: Vice President, Orissa Project Since: 2010 Age: 54 Mr. Jha has been the Vice President for Orissa Project at Tata Steel Group since 2010. Prior to this appointment, he had been the Vice President for Safety and Long Products. Mr. Jha has been a member of the Board and holds the directorship at NatSteel Asia, Singapore, Raw Met, TS Asia, Tata Steel Thailand, TM International Logistics, India and Tata Refractories. Mr. Jha has done his Post-graduate Diploma in Business Management from the Xavier Institute of Business Management. He completed his Executive Development Programme from CEDEP, INSEAD .

Koushik Chatterjee Board: Senior Management Job Title: Group Chief Financial Officer Since: 2008 Age: 40 Mr. Chatterjee has been the Group Chief Financial Officer at Tata Steel Group since 2008. He ed Tata Steel in 1995. During 1996-98, he was also a visiting faculty at XLRI, Jamshedpur in Corporate Finance. In 1998, Mr. Chatterjee was transferred to the Tata Steel Head Office in Mumbai and subsequently to Tata Sons in the Group Executive Office (GEO). He became the General Manager for Corporate Finance at Tata Sons in 2002. During his tenure in Tata Sons, Mr. Chatterjee was involved in mergers & acquisitions activities including privatizations and t ventures. He was also the lead facilitator in the group wide roll out of economic value added (EVA) for the major Tata companies. Currently, Mr. Chatterjee serves as a Director at Tata Steel UK, NatSteel Asia, Tata Steel (Thailand) Public Company, Southern Steel, Malaysia and others.

N. K. Misra Board: Senior Management Job Title: Vice President and Group Head, Mergers and Acquisitions Age: 53

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Tata Steel Group Key Employee Biographies

Mr. Misra is currently a Vice President and the Group Head for Mergers and Acquisitions at Tata Steel Group. He ed Tata Steel in 1981 as an s Officer at collieries Division and was further deputed to its associate company Kumardhubi Metal Casting and Engineering in 1984. He ultimately rose to occupy a key position of the Chief Financial Officer. In 1993, he reverted to his parent organization and was appointed the Head for Finance and s at Bearings Profit Centre and Tubes Profit Centre, respectively, for seven years. He has done his Bachelor of Science degree from Luckhnow University in 1976 and is a member of Institute of Chartered ants of India. He completed the General Management Programme from CEDEP/INSEAD, .

Partha Sengupta Board: Senior Management Job Title: Vice President, Raw Materials Since: 2010 Age: 51 Mr. Sengupta has been the Vice President for Raw Materials at Tata Steel Group since 2010. He ed the company as a graduate trainee in 1980. After stints in R&D and Scientific Services, he was transferred to Marketing Division in 1991, where he worked till 1995. Thereafter, Mr. Sengupta served as the Commercial Manager in Managing Director’s office, Kolkata. In 1996, he took charge to re-structure the order fulfillment process as Head of the Customer Order Management Department. Mr. Sengupta was then involved in re-engineering the outbound supply chain and creation of Customer Service Division, which he headed as Chief till 2002. In 2002, Mr. Sengupta moved to Mumbai in Tata Special Steel and supervised its merger into Tata Steel and was placed as the Executive-in-Charge of Wire Division in 2003. In 2005, he took over as the Principal Executive Officer to the Managing Director. Mr. Sengupta was given additional charge of overseeing the Jharkhand Steel Project. In 2007, he took over as the Vice President for Corporate Services, Tata Steel. He is a currently a Director at the JUSCO Board and Tata Pigments.

Radhakrishnan Nair Board: Senior Management Job Title: Chief Human Resource Officer Age: 49 Mr. Nair is currently the Chief Human Resource Officer at Tata Steel Group. He has 23 years of service with substantial experience in Indal (when it was a subsidiary of Alcan Montreal), Eicher, Mahindra Ford, Citibank, Mahindra British Telecom and Suntech Business Solutions.

Sanjiv Paul Board: Senior Management Job Title: Vice President, Corporate Services

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Tata Steel Group Key Employee Biographies

Since: 2010 Mr. Paul has been the Vice President for Corporate Services at Tata Steel Group since 2010. He ed the company as a graduate trainee in 1986. On completing his training in 1988, he worked in various functions like SMS-3, LD1, LD2 and Slab Caster, moving steadily up the professional ladder. In 2001, Mr. Paul was placed as the Principal Executive Officer to the then Managing Director at Tata Steel, Mr. B. Muthuraman. In 2003, he became the General Manager for Town Services Division and was actively involved in the incorporation of this division as a separate business and legal entity, Jamshedpur Utilities and Services Company (JUSCO). In 2003, Mr. Paul became its first Managing Director, a position that he held March 2010.

T. V. Narendran Board: Senior Management Job Title: Vice President, Safety and Flat Products Since: 2010 Mr. Narendran has been the Vice President for Safety and Flat Products at Tata Steel Group since 2010. He ed the company in 1988. Mr. Narendran worked in the International Trading Division of Tata Steel from 1988 to 1997. From 1997 to 2001 he worked in Tata Steels’ marketing and sales division and from 2001 to 2003 he was the Chief of Marketing and Sales for Long Products. From 2003 to 2005 Mr. Narendran worked with Mr. Muthuraman, the then Managing Director at Tata Steel as his Principal Executive Officer. Mr. Narendran was actively involved in the Tata Steel’s first overseas acquisition, NatSteel and was seconded there as an Executive Vice President in 2005. He ran operations in NatSteel thereafter as the Deputy President for Operations and took over as the President and Chief Executive Officer in 2008.

Varun K. Jha Board: Senior Management Job Title: Vice President, Engineering and Chattisgarh Project Age: 57 Mr. Jha is currently the Vice President for Engineering and Chattisgarh Project at Tata Steel Group. He ed the company in 1972 as a graduate trainee in the Engineering Division. Mr. Jha has worked in various capacities in the Engineering Division and Modernisation Group and was responsible for project management and construction of a large number of projects under the modernization programme.

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Tata Steel Group Key Employee Biographies

In 1993, Mr. Jha worked for about a year looking after the maintenance of electrical and electronic equipment for hot strip mill and other new facilities. From mid 1994 he has led Information Technology Services. In 2003, Mr. Jha led the project to develop IT strategy for the company. He is currently a member of Board of Directors at Tata Yodogawa.

A. Anjeneyan Board: Senior Management Job Title: Company Secretary Since: 2009 Mr. Anjeneyan has been the Company Secretary at Tata Steel Group since 2009. He has experience of 25 years. Prior to ing his present assignment, he worked with ACC as the Company Secretary.

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Tata Steel Group Major Products and Services

MAJOR PRODUCTS AND SERVICES Tata Steel Group is one of India's largest integrated private sector steel companies. The company's key products include the following: Raw materials Flat products: Hot rolled products Cold rolled products Galvanized products Long products: Construction rebars Bearings and auto assemblies: Self - aligning clutch release bearings Double row self - aligning ball bearings Hub unit bearings, tapered roller bearings Magneto bearings Double - row angular ball bearings Clutch release bearings Special purpose ball bearings Non standard ball bearings Center bearings Deep groove ball bearings Wires: Tyre bead wire, spring wire, spoke wire, and ball bearing wire for the auto segment LRPC, PC wires for construction segment Cable armor, ACSR for power segment Card clothing wire for textile industry Galvanized wires for farming and fencing MIG welding wire for welding purposes Steel wool wires for miscellaneous use Tubes: Commercial tubes Structural tubes

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Tata Steel Group Major Products and Services

Precision tubes Plants and equipment Agricultural implements: Hoes Sickles Crowbars Shovels Pick axes Hammers TP series hoes (Powrah) Garden tools and files Brands: Galvano Tata Agrico Tata Bearings Tata Pipes Tata Shaktee Tata Steelium Tata Tiscon Tata Wiron

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Tata Steel Group Revenue Analysis

REVENUE ANALYSIS Overview Tata Steel Group recorded revenues of INR1,473,292.6 million (approximately $32,147.2 million) in FY2009, an increase of 12% over FY2008. For FY2009, India, the group's largest geographic market, ed for 17.9% of the total revenues. Tata Steel Group generates revenues through two segments: steel (91% of the total revenues, before adjustments, in FY2009), and others (9%). Revenue by segment In FY2009, the steel segment recorded revenues of INR1,334,818.2 million (approximately $29,125.7 million), an increase of 13.4% over FY2008. The others segment recorded revenues of INR131,755.3 million (approximately $2,874.9 million) in FY2009, a decrease of 1.6% compared with FY2008. Revenue by geography India, Tata Steel's largest geographical market, ed for 17.9% of the total revenues in FY2009. Revenues from India reached INR262,995.7 million (approximately $5,738.6 million) in FY2009, an increase of 30.4% over FY2008. Other countries ed for 82.1% of the total revenues in FY2009. Revenues from other countries reached INR1,210,296.9 million (approximately $26,408.7 million) in FY2009, an increase of 8.7% over FY2008.

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Tata Steel Group SWOT Analysis

SWOT ANALYSIS Tata Steel Group is one of India's largest integrated private sector steel companies. It is the world's sixth largest steel company with capacity of 31 million tones per annum (tpa). The group is the world's second most geographically diversified steel producer, with operations in 26 countries and commercial presence in more than 50 countries. Tata Steel Group's strong market position gives it advantage of scale and increases its bargaining power. Increasing consolidation in the global steel industry, would however, create larger entities, which would increase competition resulting in decreased market share and earnings growth of the group. Strengths

Weaknesses

Strong market position Integrated steel operations in India Strong research and development (R&D) capabilities

Dependence on third party suppliers for raw material in Europe Dependence on Europe

Opportunities

Threats

Expansion in India t ventures to develop mining activities Anticipated demand for steel in India

Consolidation in the global steel industry Environmental regulations Economic or industry downturn

Strengths

Strong market position Tata Steel Group, an integrated steel company, is the world's sixth largest steel company with capacity of 31 million tones per annum (tpa). Set up as Asia's first integrated steel plant and India's largest integrated private sector steel company, it is the world's second most geographically diversified steel producer, with operations in 26 countries and commercial presence in more than 50 countries. Tata Steel India is the largest producer of Manganese alloys in India with a market share of approximately 14%. Tata Steel Europe operating through Corus is Europe’s second largest steel producer. In FY2009, Tata Steel Europe’s market share for main carbon steel products in the UK was about 50%. NatSteel Holdings had about 58% of market share for steel in Singapore in FY2009. Further, Tata Steel (Thailand) Public Company (TSTH), in which Tata Steel Group has 67.1% equity, is the largest producer of long steel products in Thailand, with a manufacturing capacity of 1.7 million tonnes per annum.

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Tata Steel Group SWOT Analysis

The group's strong market position gives it advantage of scale and increases its bargaining power. Integrated steel operations in India The steel business of Tata Steel Group in India is integrated. Majority of its raw material requirements are provided through its mining operations in the country. Tata Steel India is self-sufficient in iron ore due to its captive mines. In addition, it is self-sufficient to about 52% of its coking coal requirement. The iron ore units owned by Tata Steel India are located in Noamundi, Joda, and Katamandi in the states of Jharkhand and Orissa. These units produce nine million tpa of various grades of high quality iron ore including rich blue dust ore. The company owns two collieries in West Bokaro and Jharia. The West Bokaro unit is an open cast mine and the Jharia unit is an underground mine. The coal mines are located about 150 kilometers from the steel plant at Jamshedpur and produce superior grades of clean coal. In FY2009, the West Bokaro unit produced 5.68 million tones of raw coal and the Jharia unit 1.587 million tones. These captive mines shield the group from fluctuations in raw material prices. The integrated steel operations in India made the group one of the cost-effective steel manufacturers in the country. Tata Steel India is the country’s largest integrated private sector steel company. The Indian operations being one of the most competitive assets in the group’s business portfolio offer a competitive advantage with a leading market position in the country. Strong research and development (R&D) capabilities Tata Steel Group has strong research and development (R&D) capabilities. The group conducts research to develop new products and improve existing products, as well as to enhance manufacturing and production methods and improve service. Tata Steel Group operates four research centers: Tata Steel Limited’s (TSL) laboratories in Jamshedpur and the Tata Steel Europe’s (TSE) technology centers in IJmuiden, Netherlands and Rotherham and Teesside, the UK. The group is undertaking research activities in several areas. Tata Steel Group is currently working on various projects that include economic mineral beneficiation aimed at identifying ways to maximize use of raw materials from captive sources; new generation high strength steels to develop high strength steels, advanced coatings developments, production of ferro chrome with less energy; hydrogen harvesting, developing state-of-the-art thin film photovoltaic systems, and development of efficient coolants and lubricants for rolling. The group is also working on reducing carbon dioxide (CO2) emissions across its operations. Tata Steel India is currently working on several projects that could yield a reduction of two million tonnes of CO2 a year. Tata Steel Europe is also working with other steel makers in Europe on a major R&D project, ultra low CO2 steelmaking S (ULCO) with the objective of reducing carbon emissions per tonne of steel produced, by 50% by 2050. As of March 2009, the patent portfolio of Tata Steel Group comprised over 850 patent applications at various stages between filing and grant and over 850 valid patents granting national exclusive

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Tata Steel Group SWOT Analysis

rights owned by the respective group companies. The Tata Steel Group intellectual property rights portfolio also comprised about 250 pending trademark applications and over 1500 ed trademarks for products.The company's strong R&D capabilities provide it with a competitive advantage and help it to improve the efficiency of its products and processes.

Weaknesses

Dependence on third party suppliers for raw material in Europe The raw material self-sufficiency for the Tata Steel Group is currently at 25%. The group plans to increase self-sufficiency of raw materials to 50% in the medium to long term. Although the Indian operations of the group are integrated, Tata Steel Group’s European operations do not have captive iron ore and coal resources. The business imports raw materials for its steel business. In FY2009, approximately 22 million tonnes of iron ore and 11 million tonnes of coal were imported by Tata Steel Europe. The iron ore was imported mainly from Australia, Canada, South Africa, and South America, and the coal from Australia, Canada, and the US. The European business is susceptible to the fluctuations in the iron and coal prices. Therefore, dependence on third party suppliers for raw material in Europe increases the business risk for the group. Dependence on Europe Europe is the key market for Tata Steel Group. In FY2009, the company generated about 65% of its revenues from Europe. The depressed levels of demand in the region had a major impact on stainless steel markets. Minor changes in price levels, periodic demand growth, or currency rates in specific market areas and regions can affect Tata Steel Group's competitive position and financial performance. The company’s business is also exposed to any adverse changes in the policies and regulations related to the steel sector in the region. Therefore, dependence on Europe for majority of its revenues increases business risk for the company.

Opportunities

Expansion in India Indian operations are one of the most competitive assets in the global steel industry. The expansion of Indian operations is a key strategy for Tata Steel Group. The group is currently expanding its steel making capacity by three million tones at Jamshedpur. The expansion will involve setting up a new ‘I’ blast furnace, LD shop, a thin slab caster and rolling facilities of 2.4 mtpa, new coke ovens of 1.4 mtpa capacity, and pelletising plant of six mtpa. It also includes the development of iron ore mines and other raw materials sources including coal and logistic linkages for the plant.

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Tata Steel Group SWOT Analysis

The expansion is expected to be completed by 2011. Upon its completion, Jamshedpur will be a single site with 10 million tonne capacity. The expansion at Jamshedpur will enable Tata Steel Group to reduce the operating costs over a large volume of production and strengthen its market share in the flat products segment. Other expansion projects in India include the ongoing greenfield project in Orissa and Chhattisgarh. The group's expansion of Indian operations would help it to generate incremental revenues and reduce its dependence on Europe. t ventures to develop mining activities The steel production in India is expected to grow to over 120 million tonnes by 2015. Tata Steel Group is pursuing opportunities to cater to the raw materials requirement of increasing steel demand and other mineral based industries. In October 2009, Tata Steel and MMTC signed an agreement to establish a 74:26 t venture company for acquiring, development, and operation of mines and processing of minerals and metals. MMTC, a central public sector unit, is India’s largest trading company. It is engaged in international trading of minerals, metals, precious metals, fertilizers, coal and hydrocarbons, and agro commodities. Furthermore, in January 2010, Tata Steel Group signed a memorandum of understanding with NMDC for exploring possibilities of a strategic alliance to enhance iron ore resources. NMDC, a central public sector unit, is India’s single-largest iron ore producer and is involved in mineral exploration and mining. The two companies will explore possibilities of entering into t ventures for the purpose of acquisition, exploration, and development of mines, extraction and processing of minerals, setting up integrated steel plants, and any other business of mutual interest. Tata Steel Group has major plans to expand its Indian operations and is looking at enhancing its iron ore resources and developing technology for using lower grades of iron ore in the country. NMDC plans to establish a presence in steel making leveraging its mining operations. These t ventures will strengthen the long-term raw material security for Tata Steel India and ensure smooth supply of raw materials for future capacity additions. Anticipated demand for steel in India The demand for steel is expected to increase in India. In the Union Budget 2009-10, an outlay of INR54,000 million (approximately $1,178.3 million) was announced for urban development and housing and an additional 25% of outlay for rural infrastructure. The focus on infrastructure spending, allocation of funds for railways and highways, emphasis on power sector growth, and focus on rural and urban development in the Union Budget 2009-10 will boost the demand for steel in the country. Furthermore, the changes in income tax slabs will result in more disposable income in the hands of consumers. This will in turn boost demand for consumer durables which use value added steels. In addition, the reduction in home finance rates will benefit the housing sector and in turn result in higher consumption of steel. Tata Steel Group, being one of the leading players in the Indian steel market could benefit from the positive outlook for the steel industry.

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Tata Steel Group SWOT Analysis

Threats

Consolidation in the global steel industry In recent years, there has been a trend toward industry consolidation among steel companies. The consolidation of Mittal and Arcelor in 2006 has created a company with approximately 10% of global steel production capacity. In 2007, Mitsui & Co acquired Steel Technologies, a processor and converter of flat rolled steel, through its wholly owned subsidiary Mitsui & Co. (U.S.A.). In 2008, General Steel Holdings, a manufacturer of hot-rolled steel sheets, acquired a 99% stake in Maoming Hengda Steel Group, a steel products processor. In the same year, Wugang Group, a producer of steel, formed a coke t venture with Henan Pingdingshan Coal Group, a coal producer. The trend continued in 2009 and 2010. In May 2009, Ternium, a Luxembourg-based manufacturer of flat and long steel products, sold its entire 59.7% stake in Sidor, a Venezuela-based company engaged in the manufacturing and distribution of steel products, to Corporacion Venezolana de Guayana (CVG) for $1,970 million. In February 2010, Worthington Industries, through its subsidiary Worthington Steel Company, acquired the steel processing assets of Gibraltar Industries. Competition from global steel manufacturers with expanded production capacity, such as ArcelorMittal and new market entrants, could result in significant price competition, declining margins, and reductions in revenue for the company. Environmental regulations The business of Tata Steel Group is subject to extensive environmental regulatory requirements relating to occupational safety and health, environmental protection, pollution prevention, industrial waste disposal, and management of potentially toxic substances. With rising awareness of the damage to the environment caused by industry, especially regarding global warming, regulatory standards have been continuously tightened in recent years. One of the most important developments in this area has been the introduction of the Kyoto Protocol for the reduction of greenhouse gases. The protocol calls on industrialized countries to reduce their greenhouse gas emissions level by 5.2% on an average annually during 2008-12. The environmental regulations impose expenses on the companies for environmental cleanups. In case of environmental pollution, they impose the payment of fines and compensation which could affect the company’s operations. Increasing pressures from the regulatory authorities is expected to increase the compliance cost of Tata Steel Group. Economic or industry downturn Downturn or weakness in the economy in general or in key industries may adversely affect Tata Steel Group’s customers, which may cause the demand for the company’s products and services to decline. Many of the company’s customers are in industries and businesses that are cyclical in

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Tata Steel Group SWOT Analysis

nature and affected by changes in general economic conditions or conditions specific to their respective markets. Product demand in Tata Steel Group’s customers’ end markets is based on numerous factors such as interest rates, general economic conditions, consumer confidence, and other factors beyond the company’s control. Downturn in demand from industries the company serves, or a decrease in the margins that Tata Steel Group can realize from sales of its products to customers in any of these industries, could adversely affect the company’s financial results.

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Tata Steel Group Top Competitors

TOP COMPETITORS

The following companies are the major competitors of Tata Steel Group

Steel Authority of India Ltd. Essar Steel Limited Ispat Industries Limited Jindal Steel & Power Ltd Mukand Limited ArcelorMittal JSW Steel Ltd Lloyds Steel Industries Ltd POSCO ThyssenKrupp AG United States Steel Corporation SeverStal Ryerson Inc Nucor Corporation Nippon Steel Corporation Shanghai Baosteel Group Corporation

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Tata Steel Group Company View

COMPANY VIEW A statement by Ratan N. Tata, Chairman of the Board of Directors at Tata Steel Group, is given below. The statement has been taken from the company’s annual report for FY2009: Global Meltdown After decades of global growth, the world watched in horror as financial institutions collapsed, first in the United States followed by Western Europe and the United Kingdom. The crisis then spread to nations in Eastern Europe, Asia and other geographies. This global meltdown had a widespread and devastating effect on the world-wide banking system, stock markets, pension funds, individuals’ net worth and ownership of assets. It was a financial crisis of proportions approaching that at the time of the Great Depression of 1929. In their efforts to restore fiscal stability and credibility of the banks, various governments stepped in with financial packages to assist banks and other financial institutions, with a view to normalising the financial sector. However, in most cases, these funds were used by the receiving institutions to shore up their own balance sheets, and very little reached the “real economy”. The resultant lack of liquidity in the market, resulted in the drying up of consumer credit and working capital, leading to an unprecedented reduction in demand and the consequent inability of companies to finance their operations. This led to a domino-effect downward spiral in various industrial sectors like construction, automobiles, consumer products and capital goods. The effects of this downturn were initially felt in the industrialised nations but spread quickly to most other countries around the world. The global downturn also had a major effect on various industries dependant on steel. Major contraction in the construction projects, automobiles, white goods demand from the third quarter of 2008-09 resulted in the global demand for steel dropping by 21% compared to the level consumed in the same quarter of the previous year. While the economic scenario in India may look similar to that in the West, the situation was entirely different. Unlike the international banks and financial institutions, Indian banks did not hold toxic paper nor had they invested in sub-prime assets. Their loan portfolios were, by and large, healthy. What did happen was that in June 2008, the Reserve Bank of India raised the Repo Rates and the Cash Reserve Ratio of the banks, consciously curtailing liquidity in the system to combat inflation which had reached a level of around 11%. Predictably, the economy began to slow down in several sectors. The corporate sector and particularly small businesses increasingly faced difficulties in running their businesses, due to the lack of available finance and credit facilities. GDP growth declined from a level of 9% to 6.7% as new investments were deferred and output fell. The situation was compounded when, as a result of the financial crisis in Western Europe and the United States, foreign financial institutions and foreign investors hurriedly liquidated their investments

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Tata Steel Group Company View

in India, leading to the collapse of Indian stock prices. Therefore from the second half of 2008-09 Indian industry was constrained to operate with very limited access to working capital, an inability to raise funds from market sources and a drastic drop in consumer demand. The good news is that the economic revival in India is beginning to take place faster than most people expected and with the new government’s plans for increased spending in infrastructure as well as rural development, the recovery in India is expected to be robust. Many believe the US economy has bottomed out, but that UK, Europe and Russia may fall still further. The general view is that an economic recovery in the Western world would probably only be in late 2010. Tata Steel The effects of the world economic downturn seriously impacted our Company’s global operations in the second half of the year under review. The demand for steel declined by 26% in the UK and Europe in the third quarter compared to a year earlier and after a further contraction in the fourth quarter, demand had fallen by 57% in the UK and 44% in Europe compared with a year ago. This reflected in a sharp downturn in private construction projects, as well as large falls in automotive and mechanical engineering, amplified by severe destocking by both end s and service centers. Indian operations witnessed a less pronounced drop in demand of 11% in the third quarter, reflecting the reduced activity in infrastructure and commercial vehicles. There are however signs that the infrastructure and road building activities in India are gaining momentum, as a result of some of the government’s actions to revive the economy. Tata Steel has taken aggressive steps to meet the challenges of these difficult times through major initiatives in cost reduction, process improvement and production rationalisation. The highest priority is being given to expanding steel producing capacity in Jamshedpur, and ensuring raw material security for the European operations which do not have captive iron ore and coal resources. Production rationalisation is also being undertaken in Europe and the UK to right-size manufacturing facilities to be in sync with the lower off -take by the market. The same approach is also being taken in the Company’s Asian subsidiaries. The past year and probably the next 12-18 months are likely to be difficult and challenging times for Tata Steel. However, the spirit of the Company’s employees, coupled with their commitment to meet the challenges, I am sure, will see Tata Steel come out of this difficult period, as a more cost-effective steel manufacturer with a stronger global market presence and an enhanced capability in producing new grades of steel products to better serve its customers. In ending I would like to thank all my colleagues and our unions at Tata Steel for their and understanding through the year. They have collectively made the Company what it is today, and will help lead the Company into tomorrow. I would also like to thank our shareholders for the trust they have reposed in the Company over the years.

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Tata Steel Group Locations and Subsidiaries

LOCATIONS AND SUBSIDIARIES Head Office Tata Steel Group Bombay House 24 Homi Mody Street Mumbai 400 001 IND P:91 22 6665 8282 F:91 22 6665 7724 http://www.tatasteel.com

Other Locations and Subsidiaries Tata Steel Limited Tata Centre 43 Jawaharlal Nehru Road Kolkata 700 071 IND

Tata Steel Limited Bistupur Jamshedpur 831 001 IND

Corus 30 Millbank London SW1P 4WY GBR

NatSteel Australia Pty Limited Nexus Industry Park Building 2 43-47 Lyn Parade Prestons NSW 2170 AUS

NatSteel Asia Private Limited 22 Tanjong Kling Road Singapore City 628048 Singapore SGP

Tata Steel Asia Limited Unit E2 23rd Floor Jiushi Fuxin Mansion 918 Huai Hai Road Shanghai 200020 CHN

NatSteel – Vina Co Ltd Luu Xa Thai Nguyen Town Thai Nguyen Province VNM

Tata Steel (KZN) (PTY) Limited Tata House 39 Ferguson Road (Near Ferguson & Rivonia Road) Illovo 2196 Johannesburg 55253 ZAF

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