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Having set up a mid-stream steel coating unit in Jamshedpur, Tata BlueScope Steel Ltd — the equal joint venture between Tata Steel and Australia-headquartered BlueScope Steel — is aiming to double its export revenue to Rs 120 crore within two years.
Coated or metallic, and pre-painted steel, is used in the construction industry. Steel coating refers to a process of painting or using metal coats for weather proofing steel sheets and increasing their longevity.
Inaugurated by the Jharkhand Chief Minister, Mr Arjun Munda on Tuesday, the mid-stream facility will cater to Tata BlueScope's four existing downstream facilities in India and Sri Lanka. Earlier, the downstream facilities were importing coated steel from Bluescope's Thailand unit.
In addition to meeting Indian demand, the company will cater specifically to SAARC nations like Bangladesh, Bhutan, Pakistan, Nepal and Sri Lanka.
Coating capacity
According to Mr Harish Pathak, Managing Director, Tata BlueScope, the Jamshedpur unit has a metallic coating capacity of 250,000 tonnes a year, of which 150,000 tonnes will be coated colour steel (pre-painted steel). While raw materials (steel) will be purchased from Tata Steel, the mid-stream unit will supply coated steel to the downstream units.
“The mid-stream unit will help reduce import costs, especially those on excise and freight duty,” Mr Pathak told Business Line . He, however, said a reduction in cost would not necessarily mean a reduction in price of coated steel.
Indian market
The Tata BlueScope joint venture offers brands like “Colorbond” (in the pre-painted steel segment) and “Zincalume” (metallic coated steel). It has an 18 per cent market share in the coated steel segment and competes with the likes of Jindal Steel Works (JSW) and Bhushan Steel.
According to Mr Pathak, while B2B (business to business) awareness campaigns were being carried out to popularise the speciality flat product (coated steel), business to consumer campaigns (B2C) will be taken up after 2013-14.
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