We are working on long-term sustainable European operations: Tata Steel CEO & MD TV Narendran
After the European Commission's move, Tata Steel-Thyssenkrupp JV is out and the Indian steel major is now working on a long-term sustainable European plan as an alternative.
Tata Steel and Thyssenkrupp Joint Venture (JV) has failed to kickstart due to the European Commission cancelling the Indian company's most ambitious European deal, which was expected to make Tata Steel Europe's second largest steel company. After the European Commission's move, the domestic and international market turned volatile and as speculation mounted about its impact on Tata Steel, which is under debt of around Rs 1 lakh crore.
Anil Singhvi, Managing Editor at Zee Business talked to Tata Steel CEO & MD TV Narendran at on the options left to the Tata Steel post-cancellation of the deal. Tata Steel chief said, "We are working on a long-term sustainable European operations and balance sheet leverage in which the European operation won't need funds from our Indian operations."
See Zee Business video below:
#ZBizExclusive | थायसनक्रप JV टूटने का #TataSteel पर होगा कितना असर। JV रद्द होने के बाद क्या है कंपनी का प्लान जानिए कंपनी के CEO और MD टी वी नरेंद्रन से अनिल सिंघवी की खास बातचीत में..@AnilSinghviZEE @TataSteelLtd pic.twitter.com/DbJtU2xy9i
— Zee Business (@ZeeBusiness) May 14, 2019
Narendran said that Tata Steel is facing challenges in the UK market but their Netherlands operations are quite successful and once they implement their plan in regard to their European operations, they will be able to create a sustainable growth outlook for their European operations.
Tata Steel Executive Director and CFO Kaushik Chatterjee added, "In India, when we took over Bhushan Steel our debt was around Rs 1.18 lakh crore, which by March 2019 has come down to Rs 1 lakh crore. We are going to invest Rs 23,500 crore in Kalinganagar, which is based completely on our earnings - our earnings in the Indian market have been impressive. So, there is no pressure on Tata Steel as far as our balance sheet is concerned."
Elaborating on the difference between the Indian and European steel markets, TV Narendran added, "Indian market is growth-oriented while the European market is product-mix and portfolio oriented market. In India, a growth of 5 per cent or above is considered impressive while in Europe a 1 per cent growth is praiseworthy."