Tata Steel is also foraying into furniture space and its products would have wood or wood-like finish but blend steel structure
Kolkata: Steel major Tata Steel is betting big on services and solutions business and aiming around 20% of company’s revenue from it in next few years.
“We are optimistic and aiming at 20% of revenue from services and solutions. Currently, we are at around Rs700 crore. We are gradually expanding solution products targeting end-users," Tata Steel sources told PTI.
The company is already in several solution products based on steel including doors, windows, modular housing, toilets and water ATMs etc. It is also foraying into furniture space and its products would have wood or wood-like finish but blend steel structure, they said. The firm is branding its solution products but does not find much value in branded retail stores.
“We are doing everything for direct selling to retail consumers like identifying to delivery of steel through 10,000 retail dealership network. We also offer maisons and fabricators at the customer doorsteps," Tata Steel VP (Marketing and Sales) Peeyush Gupta said.
He further informed hike in steel prices in India were not equally proportionate to the rise witnessed in international rates. Since 16 August 2016 to 17 January 2017, cumulative price rise in global steel in rupee terms stands at around Rs11,500 per tonne but in Indian market the rise was not more than Rs8,000-8500 per tonne, keeping room for further revisions, Gupta said. He, however, does not foresee any major further price hike in flat products till March the revision in January is yet to be absorbed by the market.
“Price of long products mainly rebar is likely to be revised by another 10% as this sector was hit mostly due to demonetisation leading to a price lower than sponge iron which is just not sustainable," Gupta said. Speaking about the impact of demonetisation on Tata Steel’s impact, he said, overall the impact was minimal as the demand is a bit delayed.
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