Tata Steel's production performance for the first half of FY 2007
October 3, 2006

Tata Steel completed the first half of FY 2007 on a buoyant note with impressive increase in its production and sales volumes. Hot metal production at 2.641 million tonnes and crude steel production at 2.455 million tonnes was higher by 4 per cent and 5 per cent respectively, as compared to the volumes in the first half of last year. The saleable steel production at 2.368 million tonnes registered a significant increase of 10 per cent.

The increase in production volumes has been achieved despite the fact that the 'E' blast furnace, the smallest one at Jamshedpur, was taken down in the last week of June 2006 for relining and upgradation. The rated capacity of the furnace will go up from 1050 tonnes / day to 1350 tonnes / day. The furnace is expected to be put in service in the second week of this month. The upgraded furnace has been designed in house. This project is a precursor to many more upgradation to follow in other furnaces of the company.

The first-half sales at 2.298 million tonnes, has recorded an increase of 12 per cent as compared to that of the corresponding period of last year. The sales to auto sector is 0.41 million tonnes and has increased significantly by 31 per cent. The sale of branded rebars, Tata Tiscon, has registered a notable increase of 35 per cent.

The company is undergoing a major restructuring of supply chain and the replenishment process under the "Theory of Constraints" initiative. Solution for sales offers have been rolled out in flat products, long products, tubes, wires and TGS under the "Theory of Constraints" initiative. This initiative has been benefiting the distributors in terms of very few material stock outs along with lower inventories in their warehouses. The objective is to make the company's supply chain reliable and then capitalise on the advantage in the market.