Tata Metaliks works on growth strategy
Tata Metaliks Ltd, a subsidiary of Tata Steel, is in the process of finalising its growth strategy and is looking at both organic and inorganic options, a company official said here today.
The pig iron and ductile pipe maker was open to capital expenditure for all growth plans including greenfield and brownfield.
"We are in the process of finalising the growth strategy and will be able to announce it in the next few months. We are close to it and on the job. We are looking at both organic and inorganic options," the company's managing director Sandeep Kumar told reporters after its Annual General Meeting here.
The subsidiary of Tata Steel is also actively pursuing reduction of debt, another company official said.
Tata Metaliks non-executive, non-independent director Sanjiv Paul said the company is 'open' to all kinds of capital expenditure options including greenfield, brownfield, organic and inorganic.
Paul, however, refused to elaborate on the plans.
According to him, the company will use capital responsibly for growth, cost reduction and maximising profitability.
Tata Metalik's non-executive chairman Koushik Chatterjee was away in Brussels, and in his absence, Paul chaired the AGM.
Kumar said the company is in "the process of finalising" it's growth strategy, which is likely in the next few months. But, he said, without the board's approval, he cannot speak about the plan.
The company which is looking to be a full-fledged ductile iron (DI) pipe company, is still working on some inorganic options and will be able to close it soon. If it didn't work out, organic is always there, Kumar said.
The company will invest Rs 70-100 crore towards maintenance work, including safety, sustenance and infrastructure.
From 19 per cent in FY 2011-12, DI pipe business now contributes to 53 per cent of the company's turnover.
The company is also actively pursuing to reduce its debt.
According to Paul, it has lowered its debt burden from around Rs 800 crore to Rs 471 crore in the past 4-5 years, despite investing heavily during this period through internal accruals.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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