The Hindu Business Line : Tata Steel will continue to look for acquisitions

It would not be appropriate for India to export iron ore given the position of iron ore reserves in the country and the potential for steel production and its consumption here, according to Mr B. Muthuraman, Managing Director of Tata Steel.

Speaking at a news conference held here on Monday to announce details of the Diamond Jubilee celebrations of the Indian Institute of Metals, Mr Muthuraman said the country's potential for steel production and consumption was huge. As such, it would be inappropriate to export iron ore. "No country in the world which has potential for steel production exports iron ore", he said.

Speaking on the Corus acquisition, he said Tata Steel's bid was "fair value for the enterprise" and it would help in bringing together "synergies and best practices" of the two companies.

Asked if the steel major was eyeing more acquisitions in India and abroad, Mr Muthuraman said: "A company of our size, vision and capability will continue to look for acquisitions both in India and abroad". This was relevant even to acquisition of mines, he added.

According to him, production of finished steel from greenfield projects would be sold in the domestic markets while semi-finished products would be exported. The company's six million tonnes per annum Kalinganagar plant, being set up in Orissa, would manufacture only high-grade flat products. Already, Tata Steel has a 55 per cent share of the flat products market in the domestic automotive sector.

Mr Muthuraman said West Bengal, surrounded by steel producing States such as Jharkhand and Orissa, was well positioned to become the hub of downstream units, he said.

More Stories on : Mergers & Acquisitions | Tata Steel Ltd | West Bengal | Steel

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