Welcome to the

World of Shipping

1
 Changing Face of
Tata Steel, INDIA
with the collaboration with
NYK LINE, JAPAN

2
 TATA NYK SHIPPING
PTE. LTD.

&

TATA NYK SHIPPING (I)

PVT. LTD.

3
Vision & Mission
Vision
 Leading bulk carrier for the Tata Group and the Indian market
 Profitable and sustainable growth
 Innovative freight solutions
 Teamwork, speed and flexibility
 Integrity and corporate governance

Mission
 Low cost, modern and competitive fleet
 Acquire dominant market share in the Indian market and share of spend of
the Tata group companies
 Best global practices
 Highly skilled, reliable and motivated employees
 Highest ethical standards
4
Corporate Profile
 50:50 JV between Tata Steel Ltd. (INDIA) And NYK Line (JAPAN)

 Headquartered in Singapore to take advantage of favorable tax status and

wider access to vessel financing

 Scope of the JV

Owning, Chartering & Operating ships to carry:

• Dry bulk and/or break bulk cargo in & out of India

• All Tata dry bulk & break bulk cargo anywhere in the world

• Any cargo for optimum utilization of vessels with consent of NYK Line

5
Profile – Tata Steel
 Established in 1907, Tata Steel is the world's 6th largest steel company with

an existing annual crude steel capacity of 28 million tonnes.

 Manufacturing and marketing network in Europe, South East Asia and Pacific-

rim countries.

 Investments in Corus, Millennium Steel (renamed Tata Steel Thailand) and

NatSteel Asia, Singapore

 Regarded globally as a benchmark in corporate social responsibility

6
Profile – NYK Line

 Since its foundation in 1885, Nippon Yusen Kabushiki Kaisha (NYK Line) has
overcome various challenges and grown steadily to become one of the
world's leading shipping companies.
 Operations comprise of liners, logistics, tramps, specialized carriers, cruise
ships, tankers, dry bulk, PCC, CBU Logistics, shipping line management and
ship management.
 779 cargo vessels with a carrying capacity of 52,239,693 kt (dwt) as on 31
March 2009
 Research and development of transport systems that meet all kinds of
customer needs

7
The Singapore advantage
 Global shipping hub - Easy access to vessel financing

 Strategic location

 Political stability

 Complex infrastructure and well developed economy

 AIS status - 10-year tax holiday

8
Rationale for the JV

 Viable independent business enterprise.

 Shipping expertise of NYK – Owning, Chartering & Operation of vessels

 Synergy across Tata group companies – large cargo base

 Using market cargo to keep rates for the group competitive

 Access to India’s growing trade with Tata brand

9
Highlights of the JV
 Incorporated on March 21, 2007 in Singapore

 Issued share capital : $ 45 million (contributed equally by Tata Steel and

Bulk & Energy BV, a wholly owned subsidiary of NYK Line)

 Tata NYK Shipping India Pvt. Ltd. (Indian subsidiary) set up on September

6, 2007

 Managing Director : Mr. Rajiv Mukerji

 CEO, India: Mr. Yoshihisa Konno

10
Organization Structure
 Drawn from resources of Tata Steel group & NYK and employees with

multi-national background

 Current organization strength : 25 people

 Covers corporate finance, sales, chartering & operation of vessels &

human resources development

11
Offices

 Head Office : TATA NYK Shipping Pte. Ltd.

22 Tanjong Kling Road, Singapore

 Subsidiary : TATA NYK Shipping (India) Pvt .Ltd.

Tata Centre , Kolkata

 Sales Office : TATA NYK Shipping (India) Pvt .Ltd.

Neville House, Ballard Estate, Mumbai

12
 Business Strategy
Investing in fleet – long term Larger vessels with
charters and ownerships longer tenures

Exploit spot/short
Low cost vessel Sustainable term opportunities –
financing Growth
Profit maximization

Develop Pacific / Atlantic

Risk management
round voyages

16 13
Value creation
 Value creation from control of fleet (long term charter + owning)

 In the initial 2 years of its operations, the JV has:

 Chartered/ Operated 10 vessels on Long Term Time Charter

• Owned 1 vessel (MV SAGARJEET)
• Ordered 3 vessels (ownership)
• Contracted 5 Capes on long term time charter
• Vessel acquisition for the JV has been from zero base

 Fleet cost to average out over a period of time

 Increased knowledge-base in shipping – instrumental in long term value

creation

14
 Focus on growth and profitability
Fleet buildup Capesize

 Long term charters and

ownerships
 Sufficient business for capesizes
 Balance between owned and
 Underwrite with long term
chartered vessels Capesize
contracts
 Decide on timing of new building Fleet
buildup  Committed volumes necessary
orders/delivery
 Consolidated financing strategy

Long term
New business strategy Long term strategy
New
business

 Corus business without agents

 Value creation for Corus
 New business from Tata Power
 Vehicle mix optimization
and Tata Steel
 Spot business opportunities  Control on freight rates

12 15
Positioning of the JV
 Clear view of TSL Group requirements including 15 year cover positions.

 Relationship on commercial/ market agreements with preferred position

 Active participation for cargo movement of TSL group based our of south

east Asia and Europe.

 Tata NYK will require –

• build its own assets (new buildings)

• long term agreements to charter to TSL group & the market

 Openness & trust and data sharing between TSL group and Tata NYK.

16
What’s in it for you
 Accelerated Career path (5 levels)

 International exposure and opportunities

 Corporate work environment and culture

 Best training and guidance from shipping master

 Cross functional exposure

 Challenging assignment

 Unmatched quality of life

 Brand Name

17
QUERIES

18
THANK YOU

19