The Telegraph reported that TATA Steel is planning to set up a construction group to leverage Corus' skills in making steel for high rises.
In an exclusive interview to The Telegraph recently, Mr HM Nerurkar MD of TATA Steel said that Corus has the technology to make steel for high rises (G plus six floors) and we are trying to form a construction group in India with Corus taking the lead because of the knowledge they have.
According to experts, steel intensity, which is the ratio of steel to concrete, is one of the highest in the UK. TATA Steel already has a joint venture for small buildings with Blue Scope. But for high rises, the technology exists with Corus and TATA Steel is trying to leverage that.
Mr Nerurkar said that TATA Steel is already in touch with some fabrication partners of Corus. He added that "The most important thing is managing the supply chain of the materials because everything that is required may not be available in India. But Corus has the ability to source material from anywhere in the world. So, the pipeline is managed, that's a headache the construction company or the architect will not take."
On ongoing integration between TATA Steel and Corus, which was acquired in 2007 in a USD 12.1 billion deal, Mr Nerurkar said in terms of raw material, rolling mills and so forth the process was over, and that from this quarter Corus had seen the benefits as production has gone up.
He said that both companies were trying to do things together in the automotive space. Nerurkar cited the example of the Nano to specify the synergies. He added that "If Nano wants to introduce a model in Europe, then steel development will be done combined by TATA Steel here and in Europe so that whatever has to be done in Europe, the European plants are ready to supply or we can supply."
On the key challenges facing TATA Steel, Mr Nerurkar admitted they had to do much better in terms of product development, product quality and service to the customer. He added that "We need to be as good as some of the leading Japanese companies. Also, our manpower productivity in Jamshedpur is till not world class, we still have long way to go."
He added that "The most important thing, however, was to complete the 10 million tonnes per annum plant here and 6 million tonnes per annum in Orissa, where he now sees a distinct change in environment. We should be able to start the project Kalinganagar soon. This time, I see a change. Today, I can see a greater participation and help from the administration to support the project." |
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