Steel major ramps-up production to 80%, exports contribute 50% of total sales in Q1FY21
Jamshedpur, July 9: Tata Steel recorded decent production and sales figure in Q1FY21 despite the unprecedented pandemic and ensuing mobility restrictions that severally impacted industrial activity and consumer sentiment across all geographies.
In India, the nationwide lockdown from the 25th of March impacted manufacturing activities, including key steel-consuming sectors. To counter the closure of the Indian markets in April and May, exports were ramped up significantly by tapping new markets and improving the supply chain capability and constitutes around 50% of total sales volume in 1QFY21.
The capacity utilisation of upstream facilities was at about 50% in India in April, which gradually increased to around 80% by the end of June. Downstream facilities have also been restarted and are being ramped up progressively.
During Q1FY21 Tata Steel launched two new Coated Brands “GalvaRoS” and “Colornova” to meet the evolving needs of the customers. The Company initiated supplies to National Capital Region Transport Corporation Project, which is a landmark project and also received approval for API X60 & X70 grades for supplies to Oil & Gas segment.
With the phased opening of the economy and the improvement in domestic demand, Tata Steel is optimistic and confident that the proportion of domestic sales will increase from Q2. While urban markets are showing slow recovery, retail sales, especially in rural markets, are witnessing an improvement in demand.
Tata Steel continues to stay focused on managing costs and working capital and ensuring adequate liquidity.