Tata Steel's JV to build processing unit for autos
The Economic Times — January 22, 2008

A joint venture of India's Tata Steel Ltd will invest Rs 1.9 billion to build three steel processing plants to feed demand from automobile makers, an official said on Tuesday.

Sandipan Chakraborty, managing director of Tata Ryerson Ltd, equally owned by Tata Steel and Ryerson Inc of the United States, said it is investing Rs 1 billion for a processed steel unit at stablemate Tata Motors' facility in West Bengal.

Tata Motors, India's No. 1 truck maker that recently unveiled a $2,500 car, is set to roll out the world's cheapest car from the upcoming factory in the eastern state later this year. Tata Ryerson is also building a similar unit at Tata Motor's plant in the northern state of Uttaranchal and another in the southern state of Tamil Nadu at a cost of Rs 450 million each, Chakraborty said.

"We are funding the investments through internal accruals and bank borrowings," he said. All the units will be commissioned in the financial year that begins on April 1, he said.

Higher demand for processed steel in the automobile sector is expected to drive revenues to Rs 12 billion in the year to March 2008 and to 15 billion rupees in 2008/09, he said.

Tata Steel shares ended down 7.1 per cent down at Rs 671.05 in a wobbly Mumbai market that lost 5 per cent on a global rout.