State-run Steel Authority of
India Ltd (SAIL) wants to catch up with rivals Tata Steel and JSW Steel in
steel supplies to automotive and white goods sectors over the next two years.
For this, the company expects its current modernisation and expansion drive
will help produce the kind of steel used in these sectors.
An estimated Rs 7,039 crore of
the modernisation investment of Rs 62,000 crore is being spent on producing
value-added products that will be used in the automotive and white goods
sector, said Mr C.S. Verma, Chairman, SAIL.
In the automotive sector, Tata Steel
accounts for 23.6% of the 5.37 million consumed by the segment in 2011-11,
closely followed by JSW Steel. SAIL's
supply accounts to merely 3.5% or 1.9 lakh tonnes. Similarly, in the
white goods segment, SAIL accounts for 4.8 per cent or 1 lakh tonne of the
2.06-million-tonne market in 2010-11. While Tata Steel leads the supply to
white goods segment garnering a market share of 25.4 per cent, followed by JSW
Steel and Essar Steel.
A new cold-rolling complex is
being set up at the Bokaro Steel Plant that will boost the share of value-added
products targeting auto and white goods sector. The upcoming plant has a
production capacity of one million tonnes of cold-rolled steel and 3.5 lakh
tonnes of galvanised products, Mr Verma said.
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