Tata Steel sales up 11 per cent in FY18

Tata Steel sales up 11 per cent in FY18

Jamshedpur, Apr 1 (PTI) Tata Steel has registered a growth of 11 per cent after it achieved highest-ever annual sales of 12.13 million tonnes in FY18, as per provisional data.

The company has achieved a production of 12.26 million tonnes in the fiscal ended March 31, 2018, as against 11.35 million tonnes in the year-ago period.

The annual sales of 12.13 million tonnes was against 10.97 million tonnes it achieved last year.

The company has also achieved best-ever annual sales in automotive sector, registering a growth of 21 per cent in the FY18 against an industry growth of 14 per cent (mainly driven by 2-wheelers and 3-wheelers).

Addressing a press conference here today, Tata Steel CEO and Managing Director, T V Narendran said the performance of steel sector globally was better in 2017-18 compared to last three years due to the stability witnessed in the sector.

The steel sector has performed better across the globe including the US, EU, Latin America and China, he said, claiming that the issues raised by the steel sector in view of increasing export of steel by China was largely addressed.

China had been exporting 120 million tonnes of steel globally including India, which has come down to 70-80 million tonnes, which was a reason behind the improvement witnessed in the sector, he said.

On India prospect, Narendran said the economy, particularly in the second half of the fiscal, recovered in a good way while steel consumption has grown.

Stating that the steel consumption was expected to grow by 5-6 per cent, Narendran said the steel consumption in the country should be equal to the GDP growth rate.

The proposed steel-intensive projects of the government would help enhance the steel consumption in the country, he said.

Referring to Tata Steel?s Kalinganagar project in Odisha, he said it has performed well, both in terms of quality and quantity, and has enough potential for further improvement.

The work on the second phase of the plant has begun, he said adding that the Tata Steel would invest Rs 23,000 crore in it and the work is expected to be completed in 48-month time.

Asked about the challenges the company is likely to face in the new fiscal, Narendran said the focus will be on continuing to improve performance, the work of the second phase work in Kalinganagar project, digitalization of works and safety.

Besides, improving employee productivity is also a key focus as the company intends to set a benchmark on this front.

"We are expected to achieve 2,000 tonnes per employee productivity at Kalinganagar when it achieves 8 million tonnes capacity," he said.

At present, steel producer Posco has set a benchmark globally with 2,000 tonnes per employee productivity.

About new acquisition of assets, Narendran said Tata Steel has bid for Electrosteel, Bhusan Steel and Bhusan Power.

While it has bid successfully for Bhusan Steel, it was yet to receive any intimation from banks about Electrosteel and Bhusan power. PTI BS JM