After staging a turnaround of the insolvent steel asset it acquired in Odisha’s Meramandali, Tata Steel BSL (formerly owned by Bhushan Steel) is betting on exports of downstream exports from the mill.
The plant boasts of churning out quality downstream products. Last financial year, Tata Steel BSL’s exports were 18 per cent of its overall sales. In this financial year, the company aims to export 10 per cent of its sales to strategic markets and customers. But the company can take a flexible view on exports depending on the response in domestic and international markets and the demand-supply dynamics.
“In FY20, the focus is on downstream exports by increasing presence in Europe, Africa, South East Asia and Latin America, and creating markets for high-end hot- rolled coils (HRC) exports like structural steel. We export upstream products like HRC and downstream products like Galvanised Galume (a coated product), colour-coated products, tubes and pipes, and hardened and tempered steel across the globe,” said a source at Tata Steel BSL.
The plant at Meramandali is known a forte in automotive downstream products, in addition to branded products. But with the automobile sector in the throes of its worst slump in many years, the focus is drifting to other portfolios.
With effect from November 27, 2018, Bhushan Steel is renamed as Tata Steel BSL. The Ministry of Corporate Affairs had accorded its formal approval for this on the same date.
The name change is part of the process to integrate the company’s operations within the Tata Steel fold and to align to the Tata brand and give the company a singular identity with the Tata Group.
On May 18, 2018, Bamnipal Steel, a wholly owned subsidiary of Tata Steel, acquired a controlling stake of 72.65 per cent in the company. The acquisition was in accordance with the approved resolution plan under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code
Following the insolvency resolution, Tata Steel BSL has brought in a significant improvement in the plant’s operational parameters. In FY19, Tata Steel BSL logged crude steel output of 4.14 million tonne per annum (mtpa), higher by 10 per cent year on year (YoY), propelled by higher mill availability with improvement in maintenance practices and ceaseless supplies of raw materials. Driven by higher production, sales too grew 6.5 per cent YoY. In Q4FY19, sales went up by a robust 23 per cent YoY and 25 per cent quarter on quarter.
In FY19, Tata Steel BSL developed a string of high-end products- skin panels approved from indigenous HRC at one of its major automotive customers and providing value through localisation, colour coated products meant for exports and segment specific brands like Tata Steelium, Tata Shaktee, Tata Structura and Tata Pipes. Separately it ramped up production of value added grades and obtained product approval for API X 70 for line pipe segment.
In Q1 of FY20, the company has continued its upbeat performance. Crude steel production was higher seven per cent y-o-y, driven by higher mill availability. Saleable steel sales, though, was flat at 0.86 million tonne due to fragile demand in domestic and international markets.