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    Tata Steel Long Products aims at debt of Rs 1,300 crore by 2021 end

    business | IST

    Tata Steel Long Products aims at debt of Rs 1,300 crore by 2021 end

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    Tata Steel Long Products has seen a decent correction from the recent peak even though the business prospects continue to look up. “Q4 prices would be better than Q3,” said Ashish Anupam, MD of Tata Steel Long Products in an interview with CNBC-TV18.

    Tata Steel Long Products has seen a decent correction from the recent peak even though the business prospects continue to look up.
    There is a debt reduction plan that is underway and also the company's core business is ramping up rather well.
    “Q4 prices would be better than Q3,” said Ashish Anupam, MD of Tata Steel Long Products in an interview with CNBC-TV18.
    “If I look at the Q4 from the demand perspective, demand looks to be good, automotive is good, other segments like construction and the other businesses which we do, demand looks stable. Q4 prices are looking better than what they were in Q3,” he said.
    The company has been focusing on debt reduction for the current financial year. It will continue to focus on debt reduction for Q4 as well as for next year.
    “When we started this financial year, one of the key focus was debt reduction plan. We started with Rs 2,600 crore of debt and in the first nine months we could reduce the debt by almost Rs 1,000 crore. To give you a perspective, the focus still continues in Q4 and you will see couple of hundred crore going down in debt as well. This will remain the focus in next year as well,” he mentioned.
    Tata Steel Long Products is not aggressively pursuing any huge acquisition growth.
    “Having said that we are evaluating any opportunities which comes across and look at it more from the strategic relevance and financial relevance,” he stated.
    In terms of Neelachal Ispat Nigam Limited (NINL), he stated, “As far as NINL goes, we are doing the homework right now, we are evaluating it from the strategic as well as financial point of view. Right now we are in the midst of internal deliberations before taking a final call.”
    When asked about Usha Martin, he replied, “The company which we have acquired is the steel business of Usha Martin, the capacity is 1 million but right now it is around 0.65-0.7 million which can be scaled up to 1 million. The issue here is that the finishing capacity is not upto 1 million. We are running at almost full capacity with 0.7 million tonne. As far as capex goes, right now the company is concentrating more on the sustenance capex because we need to make sure that whatever is spending in capex is primarily towards sustenance for the safe and the reliable working of the plant. Also we are debating whether we need additional finishing capacity of 0.3 million tonne so that we can balance the entire 1 million tonne as we move forward.”
    On the impending merger with Tata Metaliks, he pointed out, “This whole exercise of getting Tata Metaliks into Tata Steel Long Products is part of the overall portfolio strategy of Tata Steel. We are all trying to club all the Tata Steel subsidiary companies into four clusters. The fundamental reason is we see synergies in upstream. We feel that there are a lot of synergies, which can be brought in in terms of the industry.”
    For full interview, watch the video.
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