Amid auto slump, Tata Steel unit in Maharashtra’s Tarapur cuts output by 15% – autos

Tata Steel’s cold rolled steel unit here has been cutting production by 15% for the last six months due to a deep slump in the automotive sector.

The 3 lakh tonne plant at Tarapur in Palghar district, north of Mumbai, caters to about 30% of Tata Steel’s supply in the automotive sector.

The prolonged recession is likely to impact sales this year too, as capacity utilization has now come down to around 85%, a senior company official said, in the last financial year, the plant had Rs 1,200 crore. Was a revenue of

“The slowdown in the auto sector has affected us for the last six months. Our capacity utilization, which used to be 100% till last financial year, has come down to 85%, ”Ujjwal Desai, head of Tata Steel’s Cold Rolling Complex (West), told a select group of reporters.

He said that the inventory at the factory has also piled up because the dealers have not picked up the finished products.

“We saw a similar slowdown in FY01. However, we are hoping that there will be a revival soon, ”he said, adding that there has been a slight improvement in demand since September.

But revenue growth for the current fiscal year may be affected. He said that the company had reported revenue of Rs 1,200 crore last year.

Desai said, “We are also setting up an acid regeneration plant in this complex, which will be operational in early 2020. So far we are outsourcing the job to others, but we felt we could do the work ourselves, “Desai said.

Back to top button