T V Narendran, the new Managing Director of Tata Steel, is determined to take the company forward, despite the country’s economic slowdown.
Tata Steel will continue to increase its production capacity despite various internal and external threats to the company, amidst country’s slow economy. Mr T V Narendran, who took charge as the new Managing Director (MD) at Tata Steel on 1 November, 2013 expressed his thoughts i.e. he would strive to take the company forward with the help of his team considering it as his responsibility.
Mr Koushik Chatterjee, who also took charge as the new Group Executive Director (Finance and Corporate) on the same day said, Tata Steel will now focus on execution of 6 MnT of annual production capacity Greenfield steel plant in Odisha’s Kalinganagar district. The company has already spent INR 100 billion and it will further invest around INR 350 billion for the project. First phase of the project with around 3 MnT production capacity will be commissioned by the end of 2015. The company might require raw material in the near future but for the time being it will manage with the available resources, he added.
The company has signed MOUs for projects in Karnataka, Jharkhand and Chhattisgarh, but it will presently target the Kalinganagar project, followed by the expansion project of Jamshedpur’s plant to around 10 MnT of annual production capacity.
The market situation in the country has worsened in past two years according to Mr Chatterjee. Tata Steel has conquered such situation in the past supported by its customer base and the relationship it shares with its distributors and suppliers from past many years. He expects the company to face the situation even now with the same courage and beat it again by increasing its production capacity and new products launch.
Mr Narendran in his views about various challenges said that the internal challenges include company’s growth plan during 2010-20, its performance improvement and its relationship with the stakeholders and society around its operational areas. While the external challenges for the company will be the slow economic growth in the country.
According to the new MD of Tata Steel, Steel prices will fluctuate depending on the international market scenario. The company at present has various infrastructural development projects, including the eastern and western corridors in Jamshedpur and an international airport in the city which awaits clearance from the government. It also has plans to invest around INR 500 billion in eastern India adding to the company’s profile of infrastructure growth and development in the country.