The Board of your Company approved the expansion of the Kalinganagar plant in Odisha toa capacity of 8 million tonnes per annum
The acquisition of Bhushan Steel is a strategic investment which has the potential toenhance Tata Steel's product portfolio and market competitiveness in the near future
It is a privilege to write to you again as the Chairman of the Board of Tata Steel.During 2018 the Tata group founded by Jamsetji N. Tata is celebrating its 150 years. Thisis a proud moment in history for all stakeholders of the Tata group and Tata Steel hasbeen an integral part of the rich heritage of the Group.
In terms of economic performance in the year under consideration India stood tallamongst its global peers and continues to have a significant growth promise in the future.During the year under review there were several structural reforms implemented in thecountry including the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Codeamongst others. These structural initiatives are important for enhancing the country'sfuture competitiveness.
During the year gone by your Company reviewed the long-term strategy to leverage thegrowth potential of the Indian economy in the future. The Company will continue to deploycapital in projects and investments that have the potential to create long-term value forits stakeholders. In line with these principles the Board of your Company approved theexpansion of the Kalinganagar plant in Odisha to a capacity of 8 million tonnes per annum.This project will be completed in 48 months. The Kalinganagar expansion will also includecapability to produce value-added products including cold rolled galvanised and annealedproducts to serve the differentiated customer base. In addition to the organic growthstrategy your Company has also expressed its interest and has bid for multiple assetsthat were put up for sale under the Insolvency and Bankruptcy Code. Following a rigorousand transparent process your Company was identified as the highest bidder for theacquisition of controlling interest in Bhushan Steel Limited. The acquisition of BhushanSteel is a strategic investment which has the potential to enhance Tata Steel's productportfolio and market competitiveness in the near future. Your Company will continue toevaluate and pursue growth opportunities in India through organic and inorganic options inthe future to grow in line with the underlying Indian economy.
In Europe your Company has successfully restructured the British Steel Pension Schemeincluding closing the scheme for future accruals under the Regulated ApportionmentArrangements with the approval of the Pension Regulator in the UK. Tata Steel has alsosigned a Memorandum of Understanding (MoU) with thyssenkrupp AG in September 2017 tocombine the European Steel businesses of both companies and create a leading pan-Europeansteel enterprise. The proposed joint venture will focus on driving cost synergiestechnology and will have a
Tata Steel has also signed a Memorandum of Understanding (MoU) with thyssenkrupp AG inSeptember 2017 to combine the European Steel businesses of both companies and create aleading pan-European steel enterprise.
differentiated product portfolio that will drive future value creation. The process ofcreating the joint venture involves simultaneous multi-stakeholder consultations which iscurrently at an advanced stage.
As we continue our journey to create long-term value for our stakeholders I would liketo thank all the shareholders for reposing confidence in Tata Steel's strategy andoverwhelmingly supporting the Rights Issue of the Company. I would also like to thank thegovernments customers suppliers and lenders for their relentless support to the Company.The employees unions and the Management team have worked very hard during the year and Iwould like to thank them for their tireless commitment to the Company. Finally I lookforward to your continued and valuable support in the years to come.
Chairman of the Board