[Ferro-Alloys.com]TATA Steel, which has incurred huge losses in the recent quarters largely due to weak demand, expects all its units, including the European one, to register growth in fiscal 2013-14 that begins April 1st.

 

The company also believes that the economic reforms announced by the government would help accelerate GDP growth and give a fillip to the demand for steel in the country.

 

Mr HM Nerurkar MD of TATA Steel said that “In Europe, we expect a modest two and a half percent growth against the backdrop of a negative growth this year.”

 

Mr Nerurkar said that “In fiscal 2012-13, growth in domestic steel demand is expected to be around 5 and a half per cent. Total demand is expected to be around 75 million tonnes, up from 71 million tonnes in 2011-12. In 2013-14, demand is expected to be higher at around seven percent.”

 

Mr Nerurkar said that “Formation of the cabinet committee on infrastructure for single window clearance for mega projects will generate activity in the power and roadways sectors, among others. The expected lowering of interest rates by RBI in January will provide impetus to the manufacturing and consumer durables sectors, among others. The full impact of all these will be felt in 2013-14.”

 

He said that India was expected to emerge as the second largest producer of crude steel in the next two years. He added that “With the ongoing Greenfield and Brownfield expansions India is expected to become the world’s second largest producer of crude steel in the next two years.”

 

TATA Steel posted a INR 3.64 billion loss in the Q2 of the current financial year as against a profit of INR 2.12 billion in the corresponding quarter of the previous year.