Tata Steel is on a growth path and is likely to sustain the record net profit of Rs 1,012 crore it earned in 2002-03. "We're on a growth path just now. Our aim is to make more & more profits," said a confident Tata Steel managing director B Muthuraman at a press conference here on Thursday evening. "The decade between 1990 and 2000, during which Tata Steel invested around Rs 10,000 crore, had been "a period of modernisation, a phase of consolidation and a phase for correcting fundamentals" in which the steel major replaced both equipment and technology, he said and added, "You'll see Tata Steel growing at a much faster pace in the next 10 years (between 2000-10) compared to the previous 10 years."

Asked to point out the growth areas, he said, "We are already executing a million tonne expansion" which would in an year-and-a-half make Tata Steel a five million tonne per annum (mtpa) company. "We are thinking of whether we can expand beyond that also, by another million or two and for that a study is going on," he added. Tata Steel made a net profit of Rs 1,012 crore in 2002-03 on the back of improved product mix, improved volumes and better price realisation.

"Prices will fluctuate, but our product mix and volumes will continuously improve; it is therefore up to you to make a guess as to what will happen," he replied when asked about the sustainability of last year's performance. According to him, volume and product mix together have as much power on the bottomline as price, and that the steel major's volumes and product mix "would improve every year, at least for the next five years."

When asked whether the company's newly-gained EVA positive status was sustainable, he said the steel major would "make up for what we may lose on price on a cyclical basis" by continuously enriching its product mix and improving volumes. Tata Steel is putting up a ferrochrome project in South Africa. It's looking at titanium too in Tamil Nadu. "As soon as the feasibility study is completed, we'll take a decision on it," he said. It is building up an iron ore business by way of expanding it to around five million tonne. It's also looking at acquisitions both in India and abroad, he said and added: "It's too early to talk about it."

Tata Steel has projections to double its sale of branded products from around 14 per cent of its turnover during 2002-03 (Rs 1,280 crore) to 28 per cent during the current year (Rs 2,400 crore). "Wherever our product mix is superior and our market share is high, we would focus on those products," he added. As part of its growth strategy for the current year the steel major also has projections to substantially increase its share of the cold rolled products market (direct sales to automobile original equipment manufacturers) from 32 per cent last year to 47 per cent.

Similarly, it is aiming at increasing its share of the CR products market (sales to auto ancillary manufacturers) from 28 per cent last year to 34 per cent and its market share in terms of sales to appliance manufacturers from 13 per cent last year to an ambitious 40 per cent this year. For improving its market share in the appliances industry particularly, Tata Steel is setting up a Rs 40 crore electrolytic cleaning line which would give its products a spotless look, as the industry demands.