Tata Steel sees 73% of biz from India over 10 years

Mumbai: expects India to account for 73% of its business over the next decade as it moves to double production capacity and broaden offerings. A decade ago, Europe accounted for the bulk (63%) of its business, while India comprised 29%.

Its growth outlook has changed after it adopted an inward-looking strategy following its overseas adventure, which began with the purchase of NatSteel Singapore in 2004, Millennium Steel Thailand in 2005 and Corus in 2007. Over the last few years, it bought local assets (, Usha Martin Steel) to expand its play here even as it reduced its European footprint.

On Tuesday, Tata Steel said it will raise its India capacity to as much as 40 million tons per annum by 2030 from about 20 million now. While organic growth is the way forward for flat products (sheets and plates), for long products (wires and bars), it will be inorganic growth, said CEO T V Narendran at the investors’ conference organised by the company.

India’s share in the overall business has been going up. From 29% in 2010, its share has almost doubled to 57% in 2020. India has been one of the most profitable businesses for Tata Steel. It is also one of the lowest cost producers of steel in the world, said Narendran.

While the company will continue with the European and Southeast Asian businesses, those operations will not be financially supported by the India unit, said Narendran. Southeast Asia is cash-neutral and doesn’t require money from India, while Europe became cash-positive in fiscal 2021. “There is no pressure to sell these businesses,” said the CEO.