SAIL eyes big boost to mkt share
India's largest steelmaker, the state-owned Steel Authority of India Ltd, is looking to revive its lost fortunes and scale up its market-share in the domestic market to 30% from the current 20% before 2020. Sumant Banerji reports.business Updated: Jun 13, 2011 01:07 IST
India's largest steelmaker, the state-owned Steel Authority of India Ltd, is looking to revive its lost fortunes and scale up its market-share in the domestic market to 30% from the current 20% before 2020.
SAIL had a 30% market-share about a decade ago, but lost steam as private players like the Jindals and Tata became more aggressive.
"We are in the last stages of our Rs 72,000 crore corporate plan that will see our capacity expand to 24 million tonnes by 2012-13, but we have aggressive plans even beyond that," said CS Verma, chairman, SAIL. "Our vision for 2020 is to have a capacity of 60 million tonnes, when the overall industry would produce around 180-200mt. This would give us our desired 30% marketshare."
The Maharatna firm is also planning to expand into four designated non-core business areas that it hopes would account for a quarter of its turnover by 2020. The new businesses eyed include power generation, laying tracks for railways and manufacturing passenger and freight wagons.
"We have plans to branch out into other areas but most will be linked to our core business of steelmaking," Verma said. "As a company, we require lot of energy and though we have captive power generation, we are deficient by around 400 MW annually. We want to expand into it and double our power capacities to around 6,000 MW so that we not only take care of all our needs but also have excess power to enable us to become a merchant power producer."
SAIL, which generates 10% of railways freight earnings every year, also wants to leverage that relationship to provide end to end track laying solutions.
"We currently provide rails to the railways and have initiated talks to offer services like laying and maintaining these tracks," he said. "Further we are also getting into production of high end stainless steel frieght wagons that would be followed by passenger wagons as well. It is easy for us to get into these areas, but it will give us good revenues in times to come."