Tata Steel to up auto steel sales by 20% by fiscal-end

Tata Steel today said it planned to increase its auto steel sales by 20% to 1.2 million tonne by end-this fiscal as the Indian automobile industry was growing at a fast pace.

"We plan to increase our auto steel sales by 20% to 1.2 million tonne from the present 1 million metric tonne by end-this fiscal," Tata Steel Managing Director HM Nerurkar told reporters on the sidelines of an event here.

Asked about the possibility of a hike in steel prices, he said, "we have not decided anything yet. I can say it is a challenging time for steel companies at every scenario."

Tata Steel Group Chief Financial Officer Koushik Chatterjee said the company's net debt stood $9.5 billion after selling its stake in Riversdale Mining.

"Tata Steel's net debt stood at $9.5 billion after selling stake in Riversdale Mining and they have around $3 billion in cash," Chatterjee said.

The domestic steel giant sold its 26.27% stake in Australian coal miner Riversdale to global mining major Rio Tinto for Australian dollar 1.06 billion.

The sale consideration of approximately Rs 5,074 crore represents around 100% appreciation of value in less than four years since the first investment.

Meanwhile, Tata Steel has been named in Fortune magazine's 2011 list of world's most admired companies. It has been ranked sixth in the industry-metals category.

"At Tata Steel, it is our constant endeavour to improve upon key areas like innovation, talent management and community development in order to maintain our position as one of the most sustainable companies globally," Nerurkar said after receiving a trophy for the ranking at a function.