T V Narendran, Chief Executive Officer (CEO) and Managing Director of Tata Steel Limited, has said that the company is not under any pressure from new acquisitions in this decade, but will focus on expanding its existing business and increasing sales. Will give A top Tata Steel executive said the company will achieve growth by more than doubling production and expanding through its existing resources.
In an interview to PTI-Bhasha, Narendran said, “Most of our growth in the last few years has been through acquisitions (inorganic growth). Today, we are in a position where all growth aspirations can be met through expansion at our existing locations.
What did the company say?
“We don’t really need to acquire new assets to take the production to 4-5 million tonnes per annum (MTPA). At present our production is 20 million tonnes. In this decade, we will drive growth through our own expansion.” Tata Steel’s production in 2021-22 stood at over 19 million tonnes.
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In 2018 Bhushan Steel was acquired
The company had acquired Bhushan Steel in 2018. In 2019, it acquired Usha Martin. It will complete the acquisition of Neelachal Ispat Nigam Limited (NINL) by the end of the current April-June quarter. About the company’s expansion plans, Narendran said NINL’s production would be increased from one million tonnes to 10 million tonnes per annum. At the same time, the production of Kalinganagar plant will be from 30 lakh tonnes to 80 lakh tonnes and then 16 million tonnes. “Big opportunities and plans are being made,” he said.
Steel consumption will continue to grow
On Tata Steel’s decision to stop coal imports from Russia in the backdrop of Russia’s attack on Ukraine, Narendran said the same amount of coal can be imported easily from other countries. He rubbished speculations of a further increase in steel prices. “Most of the hike in steel prices was done between February and April. Right now the cost is stable so steel prices are also stable.
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Narendran said steel prices in the country in the first quarter of 2022-23 may remain higher by Rs 8,000-8,500 per tonne as compared to the fourth quarter of the previous fiscal. He said that at present the demand-supply situation in the steel industry is more balanced and it will continue for some time. He said steel consumption in India, South-East Asia and Africa will continue to grow.