In the company annual report, Cyrus P Mistry, Chairman of Tata Steel said the next 18-24 months will be challenging for the firm owing to volatile raw material prices and systemic weakness in demand in key markets.
But he expects the company to strengthen its position on the back of key management initiatives including investment in select facilities, product rationalisation and right sizing of manufacturing assets.
He informed that work on the 6 mn tpa greenfield steel plant in Odisha was continuing at full speed for the first phase of 3 million tonne.
The company expects improvement in earnings because of the recently commissioned 3-million-tonne per annum (mn tpa) brownfield expansion at Jamshedpur.
The annual report raised concern about the outlook for the Euro Zone area and said the company had to revise its cash flow expectation and valuations of the GroupÂ’s European operations.
In the key overseas markets of Europe and the UK, the economic downturn has significantly affected steel demand, which is now almost 30 per cent lower than the pre-2008 financial crisis level, Mistry said.
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