II. Tata Steel Group operations

Tata Steel Group deliveries at 24.1 million tonnes were almost at par with previous year (24.2 million tonnes). Deliveries of Tata Steel India, NatSteel Holding and Tata Steel Thailand were higher by 13%, 7% and 3% respectively, whereas deliveries at Tata Steel Europe were lower by 7% as compared to the previous year. The deliveries in Tata Steel India were higher by almost a million tonnes compared to the previous year due to the commissioning of the new capacity expansion in Jamshedpur. The deliveries at Tata Steel Europe were lower due to the economic conditions in Europe, rebuilding of Blast Furnace 4 (BF4) at Port Talbot during most part of the year and the impact of restructuring at Long products. The turnover for the Group at Rs.1,34,712 crores during the Financial Year 2012-13 was 1.4% higher than the turnover in the Financial Year 2011-12 (Rs. 1,32,900 crores). While the Group's operation in India and South East Asia registered an increase in turnover, the same was partially offset by a decrease in turnover at its European operations. EBITDA for the Group in the Financial Year 2012-13 was Rs.12,654 crores as compared to Rs.13,533 crores in the Financial Year 2011-12.

The Group reported a consolidated loss after tax (after minority interest and share of profit of associates) of Rs.7,058 crores during the Financial Year 2012-13 (Profit of Rs.5,390 crores in the Financial Year 2011-12), which also included an exceptional charge on the impairment of Rs.8,356 crores.

1. Tata Steel India

a) Steel division

The production and sales figures of the steel division of the Company are shown in the following table:

The trend of steel production and sales is shown below:

The major production and sales highlights for the Financial Year 2012-13 are shown below:

Production

Sales

• Overall sales at 7.48 million tonnes grew by 13% over last year (6.63 million tonnes in the Financial Year 2011-12).
• Due date performance (which measures delivery compliance) was sustained at 96% in Flat products and improved from 96% to 98% in Long products.

Flat Products

• The sales of Flat products at 4.49 million tonnes increased by 20% in the Financial Year 2012-13 (3.74 million tonnes in the Financial Year 2011-12).
• The division achieved the best ever sales performance in Tata Shaktee GC sheets and Durashine (0.26 million tonnes).

Long Products

• The sales of Flat Products at 2.99 million tonnes increased by 3% in the Financial Year 2012-13 (2.90 million tonnes in the Financial Year 2011-12).
• The division achieved the highest ever annual sales of Tata Tiscon in the retail segment at 1.16 million tonnes.

b) Ferro Alloys and Minerals Division

The trend of production and sales volumes of the Ferro Alloys and Minerals division is shown below:

The total sales volume in the Financial Year 2012-13 was 1,152k tonnes against the volume of 1,351k tonnes in the Financial Year 2011-12.

Growth in the Financial Year 2012-13 continued to be subdued globally, with EU remaining in recession and fiscal cliff issues plaguing US.

The outlook for next year is of cautious optimism, with China's growth coming under pressure and the continuing liquidity crunch in India. Global stainless steel production is likely to see a growth in the range of 5-6%, primarily driven by China. Demand for ferro alloys is likely to marginally increase, growing at about 5%. In the next year, the division has plans to increase its production of manganese alloys, with a focus on cost reduction. Buoyed by the success of the launch of 'Tata Silicomag', first ever branded ferro alloys in the world, the division plans to ramp up its sales by launching the same in different territories in India.

The division won the 'National Safety Award' for its Sukinda mines in the lowest injury frequency category and was recognised as 'Overall Best Performer' during the Odisha Metalliferous Mines Safety campaign for 2012-13. Sanjivani, an all lady quality circle team from Sukinda was awarded the 3 star (Gold) award at the International convention on Quality Control Circle, 2012 at Kuala Lumpur, Malaysia.

c) Tubes Division

The trend of production and sales volume of the tubes division over the last five years is shown below:

During the Financial Year 2012-13, the Tubes division registered a steady volume growth in production and sales by 5% and 3% respectively, despite the slow down in the market.

The key performance highlights of the division are as under:

• During the year, the division developed new products like Red Oxide Pipes, Thin Organic Coated Galvanised Tubes and GP Tubes for retail segment.
• 'Tata Structura' sales registered 20% volume growth during the year with best ever sales at 1,35,000 tonnes.

The Tubes division received the Zee Business 'Good Home Award' 2012 in pipes category for 'Tata Pipes'. The division's small group activity (SGA) team was adjudged 'Winner of State and Regional Finals of 25th QC Convention' organised by the Confederation of Indian Industry (CII).

d) Bearings Division

The performance of the bearings division in terms of production and sales volume is shown below:

During the Financial Year 2012-13, the division registered lower production and sales volumes due to de-growth in the auto sector, especially motorcycles and commercial vehicles.

During the year, the division commissioned a new line of bearings 'HUB Bearings', specifically used in passenger vehicles.

During the Financial Year 2012-13, the division was bestowed with a number of awards and accolades. The division was conferred with the Gold award by Economic Times and Frost & Sullivan for excellence in Manufacturing and Supply Chain. It also received the Bajaj Auto Gold Award for delivery, cost and quality besides 'Zero PPM' rating from Toyota, Tata Motors and Rane Madras for supplies of bearings.