Business Drivers (2 minutes) How does the company make money and what are the major costs?

? You need to show how you have projected the revenues and costs and balance sheet items for the company for the next few years The Indian steel industry is strong because of easy availability of raw material and workforce The growth of the construction industry, which is growing at a rate of around 8-9% is one of the major consumers of steel in the country. The 12 five-year plan by the Indian government, has allocated investment of US$ 1 trillion for the core infrastructure sector, comprising power, roads, railways, ports, airports, which are some of the major consumers of steel. The expansions in the Indian automotive industry and the oil and gas sector Current market situation The Indian steel industry per capita consumption is around 55 kg compared to the worlds average consumption of 206 kg of steel. The steel sector contributes to nearly 2% of the GDP and employs over 500.000 people In order to preserve iron ore resources for domestic use on cheaper rates, export duty on iron ore has been increased to 30% ad valorem on all varieties of iron ore in 2011 The Indian steel industry is making a mark in the Asian region with Indias leading steel company, TATA Steel being the 10th largest steel producing company in Asia between Shougang in China on the 9th and Shandong Iron and Steel Group in China on the 11th position.

Data required for projection: Tata Steels 2.9 million tonnes expansion in Jamshedpur is expected to go onstream during the Financial Year 2012-13, taking Jamshedpurs capacity to 9.7 million tonnes/annum. The Companys new 6 million tonnes/annum greenfield steel plant in Odisha is under construction and, subject to essential captive mining approvals from the Government, the first phase of 3 million tonnes is scheduled to commence in 2014 Tata Steel by 2014, would have a global steel capacity of 33.5 million tonnes, and will add a further 3 million tonnes on the full implementation of the Odisha project

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