Home > Business > Business Headline > Report
Tata Steel to ramp up global presence
Ishita Ayan Dutt in Kolkata |
April 10, 2004 12:23 IST
Tata Steel is planning to establish a multi-locational global presence with a capacity of 4-5 million tonne and a clear focus on the auto and construction sectors, it informed an investors conference in Singapore.
In its presentation to investors, the company mentioned that it would strive to be a strong player in the construction segment and secure dominance in the high-end flat products market.
The move to focus on the auto and construction sectors is part of the company's strategy to move up the value chain and to achieve this it is also re-orienting its product-mix at Jamshedpur.
Its FY05 plan includes increasing the share of longs, galvanised and cold-rolled products while reducing share of hot rolled and semis in its product mix. By FY07, Tata Steel would have a crude steel production of 7.4 million tonne.
B Muthuraman, managing director, Tata Steel, had mentioned at the annual conference in Kolkata on April 6, that establishing a global presence was part of the company's agenda for this financial year and it is also nursing a long-term plan of becoming a 15 million tonne entity.
Half of the capacity would come up at Jamshedpur and the company would create the rest 5-6 million tonne capacity at other locations in India. Eventually, Tata Steel would connect domestic and global operations.
The company officials had earlier visited China, Ukraine and Singapore to evaluate possibilities of establishing a global presence there. Incidentally, the investor conference was held in Singapore.
But, steel would not be the only business to go global. Tata Steel is planning to grow its minerals business into a global entity as well. The company has already decided to set up a 49:51 joint venture in Thailand for limestone. The yet to be named joint venture has earlier taken a limestone mine on lease.
Meanwhile, in the last fiscal its production of chrome ore, chrome concentrate and manganese ore was the highest ever. Ferro alloy sales and chrome exports also touched record highs.
Lastly, Tata Steel plans to enter into alliances with leaders of steel technology to become a dominant Asian low-cost steel major.