Hit by a slowdown in steel demand from auto makers, Tata Steel is looking at new avenues and is targeting the small and medium enterprises (SME) sector.
At the launch of its Astrum brand of hot-rolled steel, T.V. Narendran, the head for flat steel in the company, said the company is planning to sell 1 million tonnes of the product next year, generating Rs 4,000 crore in revenue.
About its focus on the SME sector, Mr Narendran told NDTV: “The initiative to develop a brand for the SME sector is more driven by the fact that we are adding significant capacity in the next few years. The segment accounts for 40 per cent of steel consumption in the country. This is an underserved segment so there is a huge opportunity.”
“The auto sector has gone through a slow period. But numbers show that the passenger car market seems to have picked up. The commercial vehicle market has also been picking up in last two or three months,” he added.
The auto sector contributes 40 per cent of revenue to the company’s flat product business.