Kolkata: Tata Steel has decided to outsource logistical management involving running its warehouses and stockyards to Tata Ryerson, the 50:50 joint venture with Ryerson Tull of the USA. Tata Ryerson which has identified processing and distribution of steel as its key service areas, is set to emerge as a dominant player in this sector hitherto controlled mainly by unorganised players. The company has also emerged as the fastest growing company in the Tata fold doubling its sales and profits every year.

"We will shortly take up the stockyard and warehousing management of Tata Steel, which will help our promoters to concentrate more on their core strength of steel making. We are also establishing ourselves as the largest provider in the steel processing and distribution sector fulfilling customised steel requirement of user industries like white goods makers and auto-ancillary units," TRL managing director, Mr Sandipan Chakraborty said.

While the company is currently handling only flat products for customers like Telco, Maruti Udyog, Toyoto, Hyundai, Ford in the auto sector and Whirlpool, LG, Voltas in the white goods sector, the company will soon venture into processing of long products for which the company is in talks with construction companies like L&T, Mr Chakraborty said. TRL has two service centres in Jamshedpur and Pune having facilities like Hot Rolled and Cold Rolled steel slitting, coil to coil pickling and cutting -to- length. It has already started warehousing and distribution operations in Jamshedpur, Pune, Kolkata, Faridabad, Raipur, Chennai, Bangalore and Kanpur. In providing customised solutions to users, TRL not only sources steel from Tisco and has tied up with Steel Authority of India and Ispat Industries.

"In the global market more than 40 per cent of steel is bought through steel service centres. The figure for India is about 5 per cent. This is expected to change with the increasing presence of global ventures in India," he said.

Tata Ryerson’s financial performance has kept pace with the ambitions of the company. Last year it earned a profit of Rs 8.84 crores up from Rs 3.84 crores in 2001-02.