Tata Steel: Retrieving The Lost Sheen
Tata Steel is keen to position its Kalinganagar plant as one of the biggest suppliers of high strength alloys to the automobile industry
Photo Credit :
Steel giant Tata Steel is BW Businessworld’s ‘Most Respected Company’ in the ‘Metals and Minerals’ category this year. Even though Tata Steel has footprints across the globe, its India operations continue to hold the key to profitability and reputation. In FY17, the more than century-old operations at Jamshedpur registered the highest ever sales volumes.
Company records point out that FY17 witnessed an important milestone as it completed the project execution of 3 MTPA (million tonnes per annum) Greenfield project in Kalinganagar in Odisha. According to the company, this is the first phase of the Greenfield site and has the potential to grow further together with Jamshedpur.
Tata Steel is keen to position its Kalinganagar plant as one of the biggest suppliers of high strength alloys to the automobile industry, especially alloys for car wheels. The steel maker has commissioned the first phase capacity of 3 MTPA at Kalinganagar and this is entirely devoted to manufacturing flat steel products that find applications in automobiles and white goods.
The steel company’s Jamshedpur unit is already one of the leading suppliers to car makers like Maruti Suzuki and Toyota. Of the total nameplate capacity of 10 MTPA at Jamshedpur, 7 MTPA is for flat steel products (slabs, coil, coated products) and the rest 3 MTPA for long products (wire, rails, rods).
Recently, announcing the progressive production and sale, T.V. Narendran, MD, Tata Steel, said that marketing and sales achieved the highest ever annual sale volume of 10.94 million tonnes, up by 15 per cent over the last financial year sale of 9.54 million tonnes.
Backed with a growth of 9 per cent in automotive, the company achieved 1.54 million tonnes sales, taking the market share from 42 per cent in 2015-2016 to 44 per cent in 2016-2017, he added. Narendran also said Tata Steel has improved its production in the last financial year (2016-17), and is willing to take on more challenges in the days to come.
While announcing Tata Steel’s financial performance in Jamshedpur, Narendran said the company is planning to have 20 per cent women employees by 2020. “With the help of positive amendments by the government with regards to women employment in the state, Tata Steel is hopeful that it will provide more employment to women,” he underlined.
The speech further elaborated that prior to 2016-17, Tata Steel in India and South East Asia has significantly improved. According to the company, following the exit of business from China and several other restructuring activities, NatSteel and Tata Steel, Thailand have significantly improved their underlying performance last year.
In 2016, the European steel industry faced several challenges including significant third-country imports especially to the UK. Based on an assessment of the business conditions faced by Tata Steel UK, the Tata Steel Board advised its European subsidiary to undertake several structural changes. The restructuring and divestment of the long product business in Europe and restructuring the operating sites of the bar business and the downstream operations in Llanwern in the UK were the most notable ones.
Tata Steel’s Netherlands business generated bulk of the operating earnings in the previous year. Of course, there are hopes that as the global economy recovers at a faster rate,
Tata Steel would be in a position to reap the benefits.