Tata Steel takes scrap route to scale up long products business

Steel long products are used in infrastructure and construction segment, an area where the government is laying immense thrust to up investments

With limited scope for organic expansion of long products capacity, Tata Steel, the country’s oldest producer of the alloy, will be setting up multiple recycling units in the West, South and North to grow in the segment.

“We will be using the distributor-production modal to scale up long product capacity and hence will not be putting any capital. We will be underwriting the capacity and hence there will be no risk but at the same there is a brand promise,” T V Narendran, chief executive officer and managing director, told Business Standard.

Currently, of the total consolidated capacity of 33 million tonnes,