Tata Steel’s India business growing
Tata Steel has announced the acquisition of Usha Martin‘s steel facility in Jamshedpur for Rs 4,600 crore. TV Narendran, MD & CEO, and Koushik Chatterjee, executive director & CFO of Tata Steel, said about the deal.
Narendran said Indian steel business is a growing market and the focus is lot more on India as the company goes about fixing the issues in Europe.
“In India the market is growing at 7-8 percent and we need to grow to keep pace with that market. These organic opportunities come to us at different points in and team and we need to be ready to seize it when it comes to us,” said Narendran, adding “we will evaluate each opportunity for what it is worth, its value and take a call based on the attractiveness of the opportunity, our ability to go ahead with it,” said Narendran.
Chatterjee said, ”We will look at each of these growth opportunities in a holistic manner as to where it takes from profitability, value creation and balance sheet structure is concerned.”
Chatterjee said with the completion of JV in Europe, they would be reducing debt by about Rs 20,000 crore. “The company has definitive plans of gradually reducing leverage while still grow organically in Kalinganagar,” he added.
“We are looking at positioning ourselves on net cash flow level after the growth and next three years, we would be happy to maintain our balance sheet post the deconsolidation of the JV. Use the cash flow for organic growth and the surplus cash flows to be deleveraged,” said Chatterjee.