Metal Storm ; Tata Steel Could Be in for Bumper Profits, Riding On the Huge, Sustained Pick-Up Expected in Consumption Over the Long Term. Why, Then, Isn't Managing Director B. Muthuraman Smiling From Ear to Ear?

Summary

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B. Muthuraman spends most of his time in Mumbai these days (when he isn't travelling, that is). It's only recently that the Managing Director of Tata Steel relocated to the third floor corner-room of Bombay House, the headquarters of the Tata group, from Jamshedpur, the manufacturing hub of the Rs 15,000-crore steel giant. The few days that he has been in the country's financial capital have provided Muthuraman plenty of opportunities to witness first-hand the infrastructure build-up taking place in this Shanghai wannabe and-what else-the increased usage of steel in such development. "Most of the buildings in the Bandra-Kurla complex use more steel (than bricks and concrete). Even the new development at the domestic airport I suspect would have a large steel component to it," observes Muthuraman.

The chief of Tata Steel is, of course, saying this in the context of the surge in steel consumption he expects in the country-not just over the next five years, not even just for the next 25, but for the next half a century. Consider: As the Tata head honcho sees it, per capita consumption in the country is set to explode from just 30 kg currently to around 200 kg in 25 years, and to all of 300-400 kg in around 50 years. This will translate into a growth in steel consumption from 40 million tonnes currently to 250 million by 2030, to 500 million tonnes by 2050.

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Metal Storm ; Tata Steel Could Be in for Bumper Profits, Riding On the Huge, Sustained Pick-Up Expected in Consumption Over the Long Term. Why, Then, Isn't Managing Director B. Muthuraman Smiling From Ear to Ear?

Muthuraman says steel production has entered a new phase of growth, which should average at least 5 per cent for the next 20 years. This is against the 1975-2000 period,...

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