Tata Steel production back at 100% capacity: CEO TV Narendran
Tata Steel production back at 100% capacity: CEO TV Narendran – Tata Steel’s production level has now recovered to 100% because the company sees a revival in domestic demand within the current quarter led by an honest monsoon and rural economy, its CEO and director T.V Narendran has said.
The company is now less hooked into exports compared to the primary quarter, he added.
The COVID-19 outbreak in India, followed by the national lockdown, impacted the industry severely. It disrupted the availability chain and impacted the demand also as production.
Due to the market conditions, steel makers like Tata Steel were forced to chop down their operations by up to 50% in April. The players also had to show exports to seek out markets for his or her produce. However, with the relief of lockdown norms, the corporate ramped up its production during a phased manner.
“Production is running at 100% and that we are now less hooked into exports than we were in Q1 (April-June),” Narendran told PTI.
Tata Steel’s overall India operational capacity (including Tata Steel BSL and Tata Steel Long Products) is 20.6 million tonnes once a year (MTPA). within the half-moon of 2020-21, Tata Steel India produced 2.99 million tonnes of crude steel while sales stood at 2.92 million tonnes.
As in Q2 rise in demand led by a good monsoon and therefore the rural economy. While the auto-recovery has been led by the demand for tractors and motorcycles, we are now seeing the coaching business devour also. it’s also been a robust quarter for appliances,” he said.
The other area where Tata Steel is seeing demand is where the govt is spending including the oil and gas sector, water conveyance systems, and railways. Construction remains a touch slow but the monsoon quarter has traditionally been the weakest quarter for construction, Narendran said about China and also the country’s transition from being a net exporter of steel to a net importer has changed throughout the international markets, the V-shaped recovery in the demand-supply dynamics within the region, he added.
Tata Steel had ramped up exports significantly to counter the closure of the Indian markets in April and by tapping new markets and improving the availability chain capability and 50% of total sales volume in April-June 2020-21.
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