Tata Steel is expecting a significant business opportunity in the international markets for iron ore, and plans to double exports in 2003-04.

"The biggest challenge faced by the company at this juncture is to manage the inevitable volatility of industrial cycles. This will require the company to continuously improve product mix and build long-term relationships with major customers in India and abroad," chairman Ratan Tata said in the annual report for fiscal 2002-03.

To achieve the objective, Tisco would need to transfrom from merely being a steel supplier to become a solution provider working together with key customers to design and deliver solutions which improve customers' products cost effectively, he added.

In anticipation of growing demand, "Tata Steel has decided to augment capacity at the Jamshedpur plant by adding a million tonne to the existing four million tonne," Tata said.

Referring to iron ore business, production of which was pegged at 79,85,000 tonne in FY03, he said Tata Steel sees a business opportunity on the international front in this segment.

"Drawing on substantial iron ore reserves, we have planned to double exports this year," he added.

Tata Steel MD B Muthuraman had said in May that production of iron ore would be enhanced from two MTPA to five MTPA at an estimated cost of Rs 75 crore (Rs 750 million).