Tata Steel: Production performance of Q1
July 3, 2006

Tata Steel completed the first quarter of FY07 on a buoyant note with a significant increase in its production. Hot metal production at 1.31 million tonnes and crude steel production at 1.21 million tonnes was higher by 8.2 per cent and 9.4 per cent respectively, as compared to volumes in the first quarter last year. The saleable steel production at 1.11 million tonnes registered an impressive increase of 17 per cent.

The first quarter sales at 1.12 million tonnes, has recorded an increase of 28 per cent, as compared to that of the corresponding period of last year. The sales to auto sector is 0.19 million tonnes and has increased significantly by 32 per cent. The sale of branded rebars, Tata Tiscon, has registered a notable increase of 42 per cent.

The company is undergoing a major restructuring of supply chain and the replenishment process under the “Theory of Constraints” initiative. Pilot projects have been rolled out under this initiative and they have started giving remarkable results in reducing stock outs and enhancing the sales.