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Tata Sponge Iron Ltd. Company History and Annual Growth Details

YEAR EVENTS
1982 - The Company was incorporated on 31st July 1982. It manufactures
Sponge Iron. The Company was promoted jointly by the Industrial
Promotion & Investment Corporation of Orissa Ltd. and The Tata
Iron & Steel Co. Ltd. to set up in the joint sector a plant for
the manufacture of sponge iron.

- The company decided to employ the TISCO Direct Reduction (TDR)
process for the manufacture of sponge iron which is 100%
non-cooking coal based. TISCO were appointed technical
consultants for the project. TISCO were not only to supply
know-how but were also to provide basic engineering under a
technical collaboration agreement.

- Under the technical consultancy agreement TISCO would provide
technical consultancy comprising design/project engineering,
project management, project implementation, etc., as well as the
technical know-how for the TDR process.

- The Tata Iron & Steel Co. Ltd., indicated their willingness to
purchase the entire output of the company at rulling market
prices for use at Jamshedpur. The Company also received many
enquiries for supplying sponge iron from other foundries,
electric furnace, steel makers, etc.

1984 - 70 shares subscribed for by the signatories to the Memorandum of
Association. 31,99,970 shares reserved and allotted to IPICOL
and 29,99,960 shares reserved and allotted to TISCO. 58,80,000
shares offered at par for public subscription during June-July.

1986 - The Company became a potentially sick company as more than 50% of
the peak networth during the year had got eroded.

1987 - The kiln had to be shut down for replacing a part of the
original refractory lining. The Company faced multifarious
problems such as refractory failure, malfunctioning of some
important equipments etc. In addition, for want of iron ore, the
plant was shut down for 105 days in the first half of the year
and for 47 days in the second half of the year.

- To overcome the raw material shortage, the company entered into
a conversion arrangement with Tata Steel at a mutually agreeable
conversion rate.

- Tata Steel proposed to install 2 small crushers within the plant
to crush the lump iron ore which was easily available. The
Company installed two captive DG sets each of 1000 KVA capacity.

- The Company entered into a foreign collaboration agreement with
M/s. Lurgi GmbH for upgradation of annual production capacity
from 90,000 to 1,20,000 TPA.

1988 - A reference was therefore made to BIFR the hearing of which was
held on 13th September. As directed by BIFR, necessary
rehabilitation package was submitted to IDBI, the lead financial
institution, seeking certain reliefs/concessions together with a
loan of Rs 385 lakhs for implementing the lurgi modification
scheme mentioned below under the caption 'Foreign Collaboration'.

1989 - Financial institution sanctioned certain reliefs/concessions to
the company.

- The Company received the Industrial licence for increasing its
capacity to 1,20,000 TPA.

1990 - Production declined to 58,676 tonnes due to 109 days plant shut
down for implementation of the modification-cum-upgradation
scheme followed by two more shut downs for a total period of 61
days for overcoming teething troubles.

- The final package containing certain reliefs and concessions
sanctioned by BIFR was received by the company and its
implementation began during the year.

1993 - BIFR vide its order dated 29th October, declared the company to
be out of its purview consequent upon making its net worth
positive and earning net profit.

1994 - The operations of the company affected primarily because of
charging off of extra-ordinary items like sales tax, enhanced
interest to Financial Institution, differential interest to TISCO
etc.

- 34,00,000 No. of equity shares allotted at par on conversion of
loan to financial institution.

1995 - The expansion project for raising the capacity from 1,20,000 TPA
to 2,40,000 TPA by installation of an additional kiln was now
under implementation.

1996 - Profitability decreased due to increase in input cost and hike in
power tariff.

- Effective 24th September, the name of the company was changed
from 'Ipitata Sponge Iron Ltd.' to 'Tata Sponge Iron Ltd'.

1997 - After achieving the prestigious ISO-9O02 Certification, the
Company continued its march towards Total Quality Management.

- The Company has excellent track record in the area of safety and
has bagged first prize for two consecutive years from Government
of Orissa.

- The Company received first prize in the category 'Lowest Weighted
Frequency Rate of Accident', and for the year under review, it
was awarded first prize for 'The Longest Accident Free Period'. A
trophy and certificate have been received for the same.

- The Company undertook community and rural developmental
activities, such as provision and maintenance of tube wells for
potable drinking water, construction of school in Indraprastha
village, repairing and adding class rooms in Bilaipada schools,
aiding in cash and kind in organising sports activities.

1998 - The Railway siding was commissioned on 29th March, and the
Company has since started receiving coal by rail and back loading
sponge iron from the siding.

- During the year the Company secured second position in the market
share of eastern India and has plan to notch-up top position in
the coming years.

- The Company has been actively participating in the promotion of
educational and social welfare activities for the inhabitants in
its surrounding villages.

1999 - During the year, the company entered new markets and despatches
have been made for the first time to markets in the north-east
from the company's newly constructed railway siding.

- The company has started development work at the Khondbond Mines
of Tata Steel and work is in advanced stages of completion.

2001 - Mr. I.S.P. Shetti has retired as Managing Director and Mr Ashok Pandit has been
appointed in his place.

2002-IDBI sold 790647 shares of Tata Sponge Iron

2004-The trading symbol of Tata Sponge Iron Limited shall be changed from 'IPITATASPO' to 'TATASPONGE' w.e.f February 11, 2004

-Delist from Ahmedabad Stock Exchange with effect from October 15, 2004.

-Delist from The Delhi Stock Exchange Association Ltd (DSE) with effect from December 11, 2004.

-LIC launches Jeevan Akshay-III

2006

-Tata Sponge Iron Ltd has informed that Mr Satyajit Mitra, a non-executive director on the Board of Directors of the company, passed away on October 15, 2006.
 
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