The Hindu Business Line : Tata Metaliks proposes foray into steel-making

TATA Metaliks is considering making a foray into steel-making. Efforts are also on to expand the company's pig iron capacity through acquisition of facilities within the country.

The company has already decided to participate in the Rs 500-crore coke project at Haldia, pioneered by Tata Steel.

The Chairman, Mr T.K. Mukherjee, told presspersons here that Tata Metaliks had already taken up an expansion project to double foundry-grade pig iron output capacity at its Kharagpur facility from 1.6 lakh tonne to 3 lakh tonne.

The Rs 50-crore project will be commissioned by the end of this year.

"We have enhanced our capacities from as low as 90,000 tonnes to the current level during 2003-04. Once we reach the 3,00,000-tonne level in this fiscal, we have to consider proposals for future expansion of product portfolio," he said.

The company is also considering entering steel-making and automobile casting products. "We will discuss the proposals with our promoter Tata Steel and finalise the growth plan accordingly," Dr Mukherjee said. He, however, declined to comment on any timeframe.

As regards the 8,00,000-tonne Haldia coke project, which has been promoted by Tata Steel in a joint venture with the West Bengal Industrial Development Corporation, the shareholders' agreement for the project is expected to be finalised by October. The decision on Tata Metaliks's exposure in the project will be taken in conjunction with Tata Steel.

Earlier, addressing the 14th annual general meeting of Tata Metaliks, Mr Mukherjee said that the reduction in import duty would not have any immediate impact on the company's prospects in the foreseeable future