Definición y uso de vistas materializadas en PostgreSQL

Before reducing the inventory level company has to plan properly on the basis of past experience and future planning. Inventory planning is the integral part of inventory management

estimated on the basis

of sales forecast and the

take care of the sale of finished goods such as steel slabs, ingots etc.

As per the production plan, in Tata-Steel it is called Annual Business Plan, which state that there would be a production of certain quantities for the required items. This ABP is based on cost accountancy and it takes into concentration all the related cost associated with the production of the goods.

This ABP is circulated in the departments as HSM, CRM, LD#1,LD#2, Blast Furnace A-G, Tube Division of the Tata Steel. As per the inventory planning the budgeting for the raw materials and stores & spared parts is allocated.

26 | P a g e INDUSTRY OVERVIEW

Global Steel industry

The current global steel industry is in its best position in comparison to last decades. The price has been rising continuously. The demand expectations for steel products are rapidly growing for coming years. The shares of steel industries are also in a high pace. The steel industry is enjoying its 6^th consecutive years of growth in supply and demand. And there is many more merger and acquisitions which overall buoyed the industry and showed some good results.

The subprime crisis has lead to the recession in economy of different countries, which may lead to have a negative effect on whole steel industry in coming years. However steel production and consumption will be supported by continuous economic growth.

The countries like China, Japan, India and South Korea are in the top of the above in steel production in Asian countries. China accounts for one third of total production i.e.

419m ton, Japan accounts for 9% i.e. 118m ton, India accounts for 53m ton and South Korea is accounted for 49m ton, which all totally becomes more than 50% of global production.

Apart from this USA, BRAZIL, UK accounts for the major chunk of the whole growth.

The world steel industry the worldwide steel industry is very good. Demand is also

Brazil, Russia, India and China (BRIC) were leading growth with an expected increase of 11.1 per cent for 2008 and 10.3 percent for 2009. China's apparent steel use is expected to grow by over 10 percent in 2008 and by 10 percent in 2009. China accounted for 35 percent of the world total this year.

In the European Union a total of 210 million tonnes of steel were produced in 2007, up 1.6 percent from the previous year. World steel production capacity is seen increasing by nearly 19 percent between 2007 and 2010. The steel industry has undergone a few structural changes in the past 3-4 years. So, the outlook for the next few years is likely to be driven by the kind of consolidation that has taken place in the past few years. The other factor that is likely to affect outlook is the extent of demand emerging from BRIC countries.

27 | P a g e In addition to these two major factors, a cost-push is coming from raw material suppliers.

Hence, steel manufacturers have to contend with strong demand on one hand, and cost-push on the other. The outlook for the domestic industry looks bright, since India has good iron ore deposits skilled manpower and growing demand for steel. There is an apprehension that if China slows down, it may dump its surplus steel into India. An analysis of global data shows that even if an economy slows down, steel consumption does not fall dramatically.

In the case of China, a slowdown can mean that the growth rate may fall from 19-20% to a lower level. But that doesn‗t mean growth will not take place. China produced around 470 million tonnes (mt) of steel last year, out of which, 66 mt was exported and the rest was consumed within the country. The measures undertaken by the Chinese government recently will reduce exports significantly in the current year. There is also a change in the consumption pattern. For instance, if construction activity slows down, the consumption of white goods will pick up and demand for flat steel products will go up.

The new capacities coming up in China are on the flat products side and not on the long products side. Overall, the impact on the supply side will be less. Similarly, the cost of production is very high — it costs around $500 per ton to produce more than 100 mt of steel in China. Since the cost of production is very high and exports are not allowed, many of these plants will be closed down by ‗09-10.This will reduce the supply of steel.

There‗s a feeling that India doesn‗t have much iron ore, considering the recent capacity expansion plans of domestic and foreign steel companies in India.

There is a possibility that if we continue exporting iron ore, we may run out of reserves. Currently, we export 90-100 mt ever year and this is steadily increasing. Ideally, we should increase our steel production capacity — we are a net importer of steel — so that rather than

exporting iron ore, we can add value to it. India should also look at investing in exploring new mines.

Indian Steel Industry-An Overview

India has traditionally been one of the major producers of steel in the world. Till the 1990s the steel industry of India was regulated and controlled by government policies. After is expected to emerge as a strong force in the global steel market in coming years.

Major aspects that are expected to play a significant role in the growth of the steel industry in India are -

 Construction

 Housing

 Ground transportation

28 | P a g e Hi-tech engineering industries such as power generation, petrochemicals, fertilizers The current scenario of the Indian steel industry indicates that there is huge growth potential in this industry. The per capita-consumption of steel in India, according to latest available estimates, is only 29 kg. This is much less compared to the global average of 140kg. The per capita consumption level of developed nations like the United States of America is 400kg. In this respect, one of the major initiatives that need to be taken is to focus on increasing the consumption of steel in the rural areas of India.

The potential for the growth of consumption of steel in the rural areas of India for purposes like rural housing, rural infrastructure, etc is high which needs to be tapped efficiently.

In order to realize the growth potential in the steel industry of India, it is essential to ensure that the industry can remain competitive. One of the major aspects in this regard is the availability of inputs. Shortage of inputs like coke has led to increase in costs earlier. Moreover proper infrastructure facilities like transport infrastructure, power etc are of prime importance in maintaining the competitiveness of the industry.

This has helped in the growth of Indian steel industry. The industry recorded the highest growth rate in the period from 2004-2005, when the growth rate of the steel sector was 4%. The increased consumption of the finished steel products in the domestic market acted as a positive catalyst in the growth process of the Indian steel industry. The favorable market condition has helped the companies operating in Indian steel industry to expand their operations and earn huge profit.

India continually posts phenomenal growth records in steel production. In 1992

India produced 14.33 million tones of finished carbon steels and 1.59 million tones of pig iron.

Furthermore the steel production capacity of the country has increased rapidly since 1991-2008, India produced nearly 46.575 million tones of finished steels and 4.393 million of pig iron.

Both primary and secondary producers contributed their share to this phenomenal development, while these increases have pushed up the demand for finished steel at a very stable rate. In 1991, a substantial number of economic reforms were introduced by the Indian government. These reforms boosted the development process of a number of industries – the steel industry in India in particular – which has subsequently developed quite rapidly.

In 1992, the total consumption of finished steel was 14.84 million tones . In 2008, the total amount of domestic steel consumption was 43.925 million tones. With the increased demand in the national market, a huge part of the international market is also served by this industry.

Today, India is in seventh position among all the crude steel producing countries. The top companies of the Indian steel sector mostly operate in four different forms like producers of pig iron, producers of stainless steel, producers of finished steel products, and producers of semi-finished steel.

The companies functional in the steel industry of India are both public sector companies and private sector companies.

29 | P a g e The rate of production of steel in India has been going up at a steady rate in the last few years.

In the recent times Orissa and Jharkhand have been identified as the potential steel destinations of India - the ones that would provide the Indian steel industry with its necessary raw material. There are also a number of steel companies in India like Tata and Arcelor -Mittal that are either coming up or have established themselves as prominent forces in the world steel scenario.

In the recent years a number of major steel corporations of the world have come flocking to India to avail the benefits of the flourishing steel industry of India. The number of steel projects in India has increased as well and this implies that the number of companies lining up to participate in these projects would be increasing.

30 | P a g e COMPANY PROFILE

Fig.4 Over view of TATA STEEL ( Source: Internet)

The TATA Iron and STEEL Company, formerly known as TISCO, began its production in 1911. It was the vision and foresight of Mr. Jamshedji Nusserwanji Tata, that on 27th February, 1908, the first stake was driven into the soil of Sakchi. His vision helped Tata steel overcome several period of adversity and strive to improve against all odd. He untiringly strove to create an organization that could provide India with the strength to stand on its own feet.

Tata Steel is the world‘s sixth largest steel company, with an annual crude steel capacity of 30 million tonnes per annum. It is the second largest private sector steel company in India in terms of domestic production. Ranked 315^th on fortune global 500, it is based in Jamshedpur, Jharkhand, India.

It is part of TATA Group of companies in private sector with consolidated revenues of Rs.1,32,110 cores and the net profit of over Rs12,350 cores, during the ended March 31^st ,2008. Its main plant is located at Jamshedpur in Jharkhand with its acquisition of Corus, Nat steel and Millennium Steel it has become a multinational company with operations in various countries

The registered office of TATA STEEL is in Mumbai.

Tata steel Jamshedpur (India) works has a crude steel production capacity of 6.8 MTPA which is slate to increase to10MTPA by 2011. The company also has proposed three Greenfield steel project in the state of Jharkhand, Orissa and Chhattisgarh in India with additional capacity of 23 MTPA and a Greenfield project in Vietnam.

31 | P a g e Through investments in Corus , millennium steel (renamed Tata steel Thailand ) and Nat steel holdings, Singapore , Tata steel has created a manufacturing marketing network in Europe , south east Asia and the pacific –rim countries. Corus, which manufactured over 20 MTPA of steel in 2008, has operations in the Netherlands, Germany, France, Norway and Belgium.

TATA STEEL Thailand is the largest producer of long steel products in Thailand, with a manufacturing capacity of 1.7 MTPA. Tata steel has proposed a 0.5 MTPA mini blast furnace project in Thailand. Natsteel holdings produce about 2MTPA of steel products across its regional operations in seven countries.

Tata steel has lined up a series of Greenfield projects in India and outside which includes:

a) 6 million tonnes plant in Orissa b) 12 million tonnes plant in Jharkhand c) 5 million tonnes plant in Chhattisgarh d) 3 million tonnes plant in Iran

e) 6.8 million tonnes capacity expansion at Jamshedpur.

f) 4.5 million plant in Vietnam.

TATA STEEL, through its joint venture with Tata Blue Scope Steel ltd., has also entered the steel building and construction applications market.

The iron ore mines and collieries in India give the company a distinct advantage in raw material sourcing. Tata Steel is also striving towards raw materials security through joint venture in Thailand, Australia, Mozambique, Ivory Coast and Oman. Tata Steel has signed an agreement with Steel Authority of India Limited to establish a 50:50 joint venture company for coal mining in India. Also Tata Steel has brought 19.9% stake in New Millennium Capital Corporation, Canada for iron ore mining.

Fig.5 TATA STEEL General Office (Source: Internet)

32 | P a g e CAPACITY

Tata Steel has set an ambitious target to achieve a capacity of 100 million tonne by 2015.

Managing Director B. Muthuraman stated that of the 100 million tonne, Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions.

 Overseas acquisitions have already added up to 21.4 million tonne, which includes Corus production at 18.2 million tonne, Natsteel production at two million tonne and Millennium Steel production at 1.2 million tonne. Tata is looking to add another 29 million tonnes through the acquisition route

 Tata Steel has lined up a series of greenfield project in India and outside which includes 1. 6 million tonne plant in Orissa (India)

2. 12 million tonne in Jharkhand (India) 3. 5 million tonne in Chhattisgarh (India) 4. 3-million tonne plant in Iran

5. 2.4-million tonne plant in Bangladesh

6. 5 million tonne capacity expansion at Jamshedpur (India) 7. 4.5 million tonne plant in Vietnam .

33 | P a g e

Vision & mission of tata steel Vision:-

We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship.