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Mr Philippe Varin

N.K. Kurup

London, Oct 6 The Anglo-Dutch steel company Corus — now owned by Tata Steel — could find a new market in India for its coated steel and packaging products, according to Mr Philippe Varin, CEO, Corus.

He said the current retail boom in India could drive up demand for food cans. Currently the per capita consumption of food cans in India is 30 per cent lower than that in the European market.

“With a number of food chains coming up in India, the demand for packaging products could go up,” he said, talking to a group of visiting journalists from India. Packaging products are made out of tin plates.

Mr Varin said Corus and Tata Steel together could find a “fantastic opportunity” in the growing markets in Asia, particularly in India. “We can offer a better product mix in the automobile, construction and packaging sectors,” he said.

Currently, there is a big difference between the product-mix in India and in Europe, in the automotive sector. “We in Europe supply coated products for about 80 per cent of the requirements of our customers while in India, 80 per cent of the products are not coated. In time, the market in India will demand more coated products, and we in Corus have the knowledge and technology to offer this,” said Mr Varin.

Similarly, in the construction sector, Corus can offer steel solutions to Indian market. In Europe, about 70 per cent of the new multi-storied buildings are based on steel structures. Corus has well-developed expertise in this area. Tata Steel recently tied up with another company – BlueScope – in this sector and the group is now in a position to provide all types of steel solutions to the construction sector, Mr Varin said.

Referring to the integration of Tata Steel and Corus, Mr Varin said that normally the new owner of an acquired company dictates the terms for running a company. Here, in the case of the Tatas, it is a different story. People in both the companies are working together to find the best practices being followed by each in different areas. Twenty different groups are engaged in this process.

On the operating model, he said the two are working as separate entities, but that all strategic decisions in business, finance and communications will be one.

Mr Varin said integration would be a step-by-step process; it will take the time needed, but not years. “I cannot give a deadline.”

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