Tata Steel growth plan has lot of challenges in the near future. Tata steel will need to attract right human resources and manage cash flows.
Tata Steel has many growth plans. The company will be soon commissioning 2 new units at Jamshedpur and Odisha. These new projects will help to improve company’s capacity over coming decade. The company has numerous challenges on its growth plans. According to T V Narendran, Managing Director, Tata Steel, the company need to overcome challenges such as cash flow management and targeting new market for certain products which are rolling out of expanded capacity. The company also needs to tap right human resources and engineering capabilities for new and upcoming units.
Tata Steel had launched two new products i.e. TATA FERROMAG, a branded Ferro Manganese and TATA TISCROME, branded Ferro Chrome on 16 Jan, 2014. This might help the company add profile to its branded products, thereby assuring its customers of better quality products.
The Steel giant also launched 3.1 million pound Steel plate cutting center in UK on 14 Jan, 2014 which has doubled its capacity the region. Moreover, it also won a two-year contract from French rail operator SNCF for supplying over 0.2 MnT of tracks which measures about 108 meters from its plant in Havange situated at Northern France.
Tata Steel has invested about USD 1 billion for every 1 MnT capacity Steel plants. The Odisha plant is of 6 MnT capacity of which 3 MnT is about to finish soon. Rest will approximately take a period of 2-3 years. The company has identified Karnataka and Chhattisgarh for future development.
Raw material availability is also a major challenge for Steel companies before setting up a plant in any location. And manufacturers expect Indian Government to need to look after the sufficient supply of raw material to the Steel industry.