Private sector major Tata Steels sales increased 8.7 per cent in 1997-98 to 2.63 million tonnes, against 2.42 million tonnes in 1996-97. Inventories of saleable steel grew 9.72 per cent to 328,115 tonnes from 299,042 tonnes over the same period.
Announcing the annual production figures in Calcutta yesterday, Tata Steel managing director Jamshed J Irani said: Net sales realisations have been under pressure. This is in line with the global downtrend in prices. In fact, the continuing glut in the domestic steel market meant that Tata Steel was unable to keep its product mix as high-value as planned at the beginning of the year, said Irani.
However, production of saleable steel increased 7 per cent to 3.01 million tonnes. Crude steel output increased 4 per cent to 3.23 million tonnes while the production of hot metal grew by a modest 2 per cent to 3.51 million tonnes.
Capacity utilisation for saleable steel rose to 110 per cent while crude steel capacity utilisation stood at 106 per cent.
The cement units at Sonadih and Jojobera produced to their installed capacity of 17 lakh tonnes per annum. Cement sales from Jojobera posted 34 per cent growth at 1,201,000 tonnes compared with 898,000 tonnes in the previous fiscal.
Sonadih, however, posted slightly lower sales at 360,000 tonnes against 363,000 tonnes in the previous year.
The glut in the domestic market took its toll on the bearings division. Bearings sales dropped 22 per cent to 11,000 tonnes compared with 14,000 tonnes in the previous year.
We actually had to curtail production in the bearings division last year to counter sluggish markets, Irani said.
Ferro chrome sales also dropped by 15 per cent to 79,000 tonnes compared with 93,000 tonnes in the previous year.
In a bid to control credit accumulation, the steel major restricted sales to some customers who were not consistent in their payments. However, on the whole, Tata Steel was able to maintain its leadership in most major product categories during the last financial year.
Exports grew 5 per cent to 0.42 million tonne and are expected to grow by another 30 per cent in the current financial year. Due to the collapse of the Southeast Asian market, the company has also shifted the focus of its export plans to East Africa, West Asia, Europe and USA.
Tatas keen to hike stake in group cos: Irani
Tata Steel MD J J Irani yesterday said the Tatas were keen to hike their stake in group companies, including Tisco, to ensure a comfortable holding level. The Tatas hold 15 per cent in Tata Steel. However, he said the company was not worried by takeover attempts and pointed out that acquiring a stake in Tata Steel would be an enormous task. In any case, it is unlikely that anybody would want to take on a steel company of this magnitude, he said.
TATAS KEEN TO HIKE STAKE IN GROUP COS
Tata Steel managing director Jamshed J Irani yesterday said the Tatas were keen to hike their stake in group companies, including Tisco, to ensure a more comfortable holding level. The Tatas now hold 15 per cent in Tata Steel.
However, Irani said the company was not worried by possible takeover attempts and pointed out that acquiring a stake in Tata Steel would be an enormous task. In any case, considering the condition of the steel industry, it is unlikely that anybody would want to take on a steel company of this magnitude, he said.
