One of the oldest steel producers in India, Tata Steel appears to be losing ground in the country's domestic steel market after a short-term successful move up the global steel market ladder through the acquisition of the Corus Group, now called Tata Steel Europe.
Tata Steel, saddled with the 2007 acquisition of the Corus plant in Europe, is now in the third position in the domestic steel market in India, behind JSW Steel, which has reached the second position.
In the September fiscal quarter, the company produced 2.11 million tonnes of steel and delivered to the market, competing with 2.93 million tonnes of SAIL steel and 3.02 million tonnes of JSW steel.
Even in complex aspects, the company has become too weak to compete with JSW. Recently, Tata Steel has been downsizing due to lower capital expenditures in India and slower business growth in Europe.
The acquisition of the Corus Group in Europe at that time made Tata Steel the 6th largest steel producer in the world, with an annual capacity 10 times that of JSW. But now the situation has changed, making the company's global production a little more than double that of JSW. And that production gap between the two companies is slowly narrowing as JSW expands its production through acquisitions and profitable production capital investments.
JSW Leads Tata Steel in Domestic Race
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Azovpromstal® 25 November 2014 г. 10:14 |
