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Tata Metaliks to evaluate and finalise growth strategy soon
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   7/26/2017 5:20:00 PM

Kolkata, July 26 (PTI) Tata Group's pig-iron producer Tata Metaliks, which is all set to become a full-fledged ductile pipe (DI) company, today said it will finalise a growth strategy in the next few months.

"We are getting organic or inorganic growth strategy ready in the next few months," Tata Metaliks chairman Koushik Chatterjee said at the company's AGM here today.

"Over a period of time, we will become a full-fledged ductile pipe company," he said.

The company will evaluate options between greenfield and brown-field expansion in the ductile iron pipes for the long term, keeping hopes high on the segment.

The company will decide whether to expand its Kharagpur plant, greenfield expansion in other location or attempt for acquisitions.

The evaluations would be carried out internally and may take help of the Tata Steel in charting out it's long term strategy.

Tata Metaliks which was primarily a pig iron maker was merged with DI Pipes in the recent back.

Chatterjee remained optimistic about the DI pipes market and hopes to maintain 12-13% growth in demand.

Currently, Tata Metaliks produces two lakh tonne of DI pipes and technically has scope for expansion upto 0.5 million tonne capacity. While, its hot metal capacity remains at 0.5 million tonne at the Kharagpur facility.

The company may require land if they decide to go another blast finance and DI pipe expansion at the Kharagpur site and the officials seemed bit apprehensive on land issue given the Singur Tata Nano project effect.

Meanwhile, Tata Metaliks which has invested in DI pipes capacity in the past will now focus on to become a more cost effective DI pipe maker by installing Pulverized Coal Injection (PCI).

PCI is a process that involves blowing large volumes of fine coal granules into the blast furnace.