Kolkata, July 2 (IANS) Leading producer of pig iron (PI) and ductile iron (DI) pipes, Tata Metaliks is in the process of finalising its growth strategy and is looking at both organic and inorganic options, an official said here in Monday.
The subsidiary of Tata Steel is also actively pursuing reduction of debt, another company official said.
“We are in the process of finalising the growth strategy and will be able to announce it in the next few months. We are close to it and on the job. It is moving fast. We are looking at both organic and inorganic options,” company’s Managing Director Sandeep Kumar told reporters after its 28th Annual General Meeting here.
“Our total loan has come down to Rs 471 crore (in the last financial year) from Rs 495 crore in the previous year. We are actively pursuing reduction of debt,” said company’s Non-executive, Non-independent Director Sanjiv Paul, who chaired the meeting in absence of company’s Non Executive Chairman Koushik Chatterjee.
The company produces hot metal using iron ore lumps, sinter, coke and fluxes, of which approximately 40 per cent is converted to DI pipes through a series of value adding processes and the balance is cast into foundry grade pig iron.
“Our focus is on DI pipes business,” Kumar said.
From 19 per cent in FY 2011-12, DI pipe business contributes to 53 per cent of the company’s turnover.
According to its latest annual report, the demand for DI pipes has been witnessing consistent growth owing to several programmes of the government and the DI pipe business recorded a 15 per cent increase in sales volume over the previous fiscal.
However, GST implementation caused temporary uncertainties which slowed down projects and consequently the demand for DI pipes during the year grew by 4-5 per cent against an expected growth rate of 10-12 per cent, it added.