Tata Steel - Global Wires India wants to expand capacity to 8 lakh tonne and targets a market share of 23 percent by 2025
Tata Steel plans to more than double current capacity at its wires unit in India by 2025, in line with its overall roadmap to also grow its steelmaking volume.
The unit, called Tata Steel - Global Wires India, at present produces four lakh tonne of wires across its three units in the country. These units are present in Tarapore, Indore and Jamshedpur.
The company now wants to increase capacity to 8 lakh tonne by 2025.
As it expands capacity, the company also wants to increase its market share in the country to 23 percent by 2025 from the present 14 percent.
The wires are used across sectors such as auto, infrastructure and power. The Tata Steel unit has leadership position individually in these sectors, Walekar told mediapersons.
About 44 percent of the production goes into the retail sector; auto: 24 percent, infrastructure: 28 percent and power: four percent.
While the company is looking to organically expand its capacity, it is also looking out for inorganic opportunities.
Apart from India, the entity also has units in Thailand, taking its total capacity to 6.7 lakh tonne a year.
The growth plan for the wires unit complements Tata Steel's overall capacity enhancement strategy. By 2025, the company wants to grow to 30 million tonne from 18.5 million tonne a year at present.Value-added pushThe wires business is mainly pushed through the brand: Tata Wiron.
There has been emphasis on services and solutions in the recent few years. This has helped the company come up with products that sell directly to retail customers.
The brand now has retail products that reach directly to farmers, poultry farms and customers in the real estate space. These products improve the margin.
Apart from selling these products, the unit provides solutions through digital medium - including apps - to assist its customers. The emphasis on product development again aligns with Tata Steel's overall push. The company wants services and solutions to generate 20 percent of its revenue by 2025.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.