Tata Steel outpaced the industry average in crude steel supplies in FY18, clocking deliveries of 12.5 million tonnes of crude steel. The steelmaker registered 10.7 per cent growth in sales, bettering the market average of 7.9 per cent.
Deliveries to the automotive sector recorded sharp growth of 22.9 per cent, rising from 1.58 million tonnes (mt) at the end of 2016-17 to 1.94 mt in FY18. Tata Steel logged 16 per cent growth in transfer to downstream units in the same period. In branded products & retail solutions segment, the growth was 9.5 per cent.
The branded portfolio contributes 46 per cent to the steel company's total sales, touching 2.5 million customers across the country. Also, 68 per cent of its delivery volumes came from enriched or value-added products.
In a presentation to analysts, Tata Steel said it has commenced commercial HR (hot-rolled) coils supplies from its Kalinganagar (Odisha) plant. In high-end auto sales, the company achieved 17 per cent growth year-on-year, driven by skin panel and hi-tensile sales. In the engineering segment, Tata Steel doubled its growth, spurred by increased market share in sub-segments like LPG cylinders and medium carbon-high carbon steels.
Tata Steel's crude steel output expanded by 6.8 per cent in FY19 to 12.48 mt, aided by ramp-up at Kalinganagar. The company expects steel demand to grow six per cent in the current fiscal with healthy growth in segments such as auto, railway, engineering, construction, LPG, tubers and galvanizers.