Global steel industry struggling to generate profits, demand growing in India: Tata Steel CEO
Tata Steel CEO and managing director TV Narendran on Wednesday said that while the global steel sector is struggling to generate profits due to factors such as China’s aggressive pricing, steel demand and consumption in India is growing.
Speaking at a New Year’s cake-cutting ceremony here, Narendran said 2023 and 2024 have been difficult for the industry globally due to the pressure on steel and the ongoing struggle to make profits, especially due to the restrictions imposed in China during the COVID-19 pandemic.
Regarding global conflicts, he said that events happening in different parts of the world have direct or indirect effects on India. However, the most important challenge facing the country is the economic slowdown in China, where recovery is yet to emerge.
Narendran expressed concern about China’s unfair competition, and urged the Indian government to take measures to protect domestic industries. Despite these challenges, he ensured that Tata Steel is well positioned and profitable in India due to its competitiveness and growing demand for steel.
Complaining that several countries, including the US, Canada, and European countries, have taken steps to protect their industries, Narendran asked India to take similar steps against unfair steel imports from China, as the steel industry has great potential to create wealth as well. activities.
Although steel demand in India is growing at 8 percent, Narendran pointed out that margin compression remains a challenge and stressed the importance of value addition.
He also spoke about the opportunity to use mineral-rich states such as Jharkhand, Odisha, and Chhattisgarh, urging that India not miss the opportunity to turn these mineral resources into industries that will create jobs.
Narendran urged for more incentives to attract investment in the sector, noting that the steel industry was investing between Rs 40,000 and Rs 50,000 crore annually. He also emphasized the importance of private sector investment for the country’s growth.
Acknowledging that the past year has been challenging for Tata Steel, Narendran cited the commissioning of the country’s largest blast furnace at Tata Steel’s Kalinganagar plant in Odisha as a major step forward. He commended the team for their efforts to ensure that the program operates safely and efficiently.
Tata Steel has also been working on other projects to benefit the workers and the local community, such as the construction of workers’ houses and schools.
Answering a question about the new government in Jharkhand, Narendran said that discussions have taken place with the government, and the Tata Group has assured cooperation in the development of the state.
He highlighted Jharkhand’s many minerals, including iron ore, coal, and its potential in the production of steel and automobiles, stressing the need to focus on value addition to create employment opportunities.
