Tata Steel matches the economic growth of the country with 5-6% even before the quarter is ended. Tata Steel showing pleasing results for its first quarter (Q1) in FY14.
The steel major’s Indian operations concluded with its expansion project and switched to its new hiked plant in January, 2013, with a capacity of 9.7 MnT p.a. which was 7.2 MnT p.a. earlier.
Being asked regarding the performance of first quarter in the company, Tata Steel’s Managing Director, H. M. Nerurkar said, “It should be okay; the volumes are matching our targeted production for the year”.
Regarding the performance of any particular segment of the steel market, Nerurkar said, “All sectors are very average, there is no special word for any sector”.
Nerurkar’s views about the demand situation in the next quarter (July-September) are that it will remain the same as the growth of the economy at 5-6% of growth rate.
Nerurkar said that the domestic steel sector’s growth was linked directly to all the economic sectors followed by infrastructure, heavy engineering, automobile etc.
Asked about any signs from the Odisha government regarding the allocation of iron ore mines to the company, he said, “Nothing has happened there”. He added that the company remained “hopeful” of allocation. The firm has already faced the situation of investing 25% of the total cost of the project for allocation of the mine at 6 MnT p.a. in Kalinganagar Greenfield project.