Tata Steel expects revival of demands in Europe

New Delhi, Jan 6 (IANS) Tata Steel, which has incurred huge losses in the recent quarters largely due to weak demand, expects all its units, including the European one, to register growth in fiscal 2013-14 that begins April 1.

"In Europe, we expect a modest two and a half percent growth against the backdrop of a negative growth this year," Managing Director H.M. Nerurkar told IANS in an interview.

The company also believes that the economic reforms announced by the government would help accelerate GDP growth and give a fillip to the demand for steel in the country.

"In fiscal 2012-13, growth in domestic steel demand is expected to be around five and a half percent. Total demand is expected to be around 75 million tonnes, up from 71 million tonnes in 2011-12. In 2013-14, demand is expected to be higher at around seven percent," Nerurkar said.

Tata Steel, which is a part of the $100 billion Tata Group, posted a Rs.363.93 crore loss in the second quarter of the current financial year as against a profit of Rs.212.43 crore in the corresponding quarter of the previous year.

Lower demand, in both India and the European markets, and the high cost of raw materials have affected the company's profitability in recent quarters. The demand for steel is depressed in Europe because of a severe economic slowdown and austerity measures by most of the countries in the region.

Tata Steel's European unit, formerly called Corus, is the largest in Europe. The Tata Group, led by the then chairman Ratan Tata, had acquired the Anglo-Dutch Corus in 2007 for $12 billion. The company is now called Tata Steel Europe.

Tata Steel's India business is also affected by weak demands as the country's economic growth slumped to a decade low. The Indian economy expanded by a sluggish 5.4 percent in the first half of the current financial year after growing by 6.5 percent in 2011-12.

"Formation of the cabinet committee on infrastructure for single window clearance for mega projects will generate activity in the power and roadways sectors, among others. The expected lowering of interest rates by RBI in January will provide impetus to the manufacturing and consumer durables sectors, among others. The full impact of all these will be felt in 2013-14," Nerurkar said.

He said India was expected to emerge as the second largest producer of crude steel in the next two years.

"With the ongoing greenfield and brownfield expansions India is expected to become the world's second largest producer of crude steel in the next two years," he said.

Jamshedpur (Jharkhand)-headquartered Tata Steel can produce over 30 million tonnes of crude steel every year. It operates in more than 20 countries and has a commercial presence in over 50.

(Gyanendra Kumar Keshri can be contacted at gyanendra.k@ians.in)

Matches

MORE TOP STORIES TODAY

Royal test for Kings

Royal test for Kings

Preview — Clash of philosophies between Australia-centric teams More »

Duminy steals first win for Delhi

Duminy steals first win for Delhi

Furious fifties by Duminy and Dinesh Karthik end a long losing streak for the Daredevils. More »

AB, Parthiv seal Bangalore's second win

AB, Parthiv seal Bangalore's second win

Royal Challengers overcame a stutter to cruise to the small target they were set by Mumbai Indians. More »

‘Felt like helpless minority’

‘Felt like helpless minority’

Former BCCI treasurer Ajay Shirke says emotions got the better of the Srinivasan and he tried to oversimplify things by calling Meiyappan an “enthusia… More »

Glenn Maxwell carves his parallel universe

Glenn Maxwell carves his parallel universe

Glenn Maxwell seems to project an icy disdain when at the crease. Match situations rarely faze him and the bubble in which he plays excludes everyone … More »

No way back for Pietersen: ECB

No way back for Pietersen: ECB

Kevin Pietersen's hopes of reviving his international career appeared to end Saturday when ECB managing director Paul Downton said there was 'no way back'… More »

Srinivasan can attend BCCI meeting

Srinivasan can attend BCCI meeting

His status as president of TNCA makes him eligible to attend the Working Committee meeting on Sunday. More »

The world record that nearly wasn't

The world record that nearly wasn't

Twenty years ago this week, Brian Lara became Test cricket's highest scorer, but he almost didn't make it. More »

Moores gets second stint as coach

Moores gets second stint as coach

In a two-year spell from 2007 to 2009, the 51-year-old Moores led England in seven Test series. More »

BCCI is not anybody’s property — Dalmiya

BCCI is not anybody’s property — Dalmiya

Dalmiya feels that Srinivasan’s ‘power hungry’ attitude isn’t helping matters. More »

Tough for bowlers: Saeed Ajmal

Tough for bowlers: Saeed Ajmal

The 36-year-old believes the T20 format and rule changes in 50-over matches have made a real difference. More »

Bangladesh senior players to see shrink

Bangladesh senior players to see shrink

Bangladesh's senior players will have three sessions with a psychological skill development coach later this month More »

KP ridicules idea of day-night Tests

KP ridicules idea of day-night Tests

Kevin Pietersen has ridiculed the idea of day-night Test cricket, saying the game would be so different to proper Test cricket that we will need a whole… More »

Rajasthan edge low-scoring thriller

Rajasthan edge low-scoring thriller

The bowlers restricted Hyderabad to 133 for 6 before Rahane and Binny took Rajasthan over the line. More »

BCCI members want independent probe

BCCI members want independent probe

The board members are realising after the Supreme Court's observations that something has to be done — IS Bindra More »

Maxwell blitz takes Punjab home

Maxwell blitz takes Punjab home

The Kings XI batsman blasted a 43-ball 95 to help his team pull off a massive chase against Chennai Super Kings. More »

'BCCI lacks leaders to take on Srini'

'BCCI lacks leaders to take on Srini'

Two former BCCI presidents, Shashank Manohar and Jagmohan Dalmiya, have reacted strongly to the news of the BCCI calling an emergent meeting on Sunday… More »

Delhi look for first points against confident Kolkata

Delhi look for first points against confident Kolkata

Preview — The threat of Sunil Narine looms large again. More »

Bangalore vs Mumbai: A battle of the big-hitters

Bangalore vs Mumbai: A battle of the big-hitters

Preview — Given the firepower in both line-ups, Dubai crowd may see another high-scorer More »

Yuvraj tees off to Sharjah's delight

Yuvraj tees off to Sharjah's delight

Yuvraj Singh was hardly convincing to begin with against Delhi, but a big dose of crowd support and a helping of poor bowling meant he had the opportunity… More »

Stressed Trott stands down again

Stressed Trott stands down again

The England and Wales Cricket Board (ECB) on Friday confirmed that batsman Jonathan Trott is to take another break from all cricket with immediate eff… More »

PCB starts another coach hunt

PCB starts another coach hunt

The PCB has decided to not extend the contracts of head coach Moin Khan, fielding coach Shoaib Mohammad and batting consultant Zaheer Abbas, and has invited… More »

Fiery star Stokes bids to curb his temper

Fiery star Stokes bids to curb his temper

England all-rounder Ben Stokes admits he must keep his anger under control if he is to end his international exile. More »

Bangalore's arsenal blazes to victory

Bangalore's arsenal blazes to victory

Yuvraj Singh was back to his best in his first match for Royal Challengers Bangalore. More »