Calcutta, July 17: Tata Steel has decided to expand capacity by one million tonnes in order to meet the rising demand both in the domestic and export markets.
The company’s installed capacity stands at 3.32 million tonnes although it produced more than 3.94 million tonnes in the year ended March 2003.
The expansion programme is expected to cost approximately Rs 2000 crore and is slated for completion by March 2006.
Tata Steel, the largest private sector steel company, expects a robust growth in the current year as well, both in terms of price realisation and in volume.
“The company sees a significant business opportunity in the international market for iron ore and, drawing on its substantial reserves, has planned to double the export of iron ore this year,” said Ratan Tata, chairman of the company.
Tata has further pointed out that the biggest challenge for the company is to manage the inevitable volatility of industrial cycles.