Tata Steel is currently focusing on internal consolidation to improve productivity and reduce cost. “Though this is an ongoing process, we have now sharpened our focus on this initiative,” said Koushik Chatterjee, Executive Director and Group CFO, Tata Steel. However, he said, it will take a while to get reflected in the company’s P&L account, as it depends on market behaviour too. He said the company is in the process of making its supply chain more cost-effective and trying to consolidate its manufacturing lines according to product categories. For example he said, instead of manufacturing the same kind of products in different facilities, it will be more cost-effective to manufacture them at one site. “This would considerably reduce logistics costs,” he said. Speaking to a group of mediapersons on the sidelines of Cost Congress 2012 here on Thursday, he said the global market condition is still challenging. “It is much more challenging than the pre-crisis level,” he observed.
Tata Steel focussing on productivity
Chennai, Dec. 6: