TATA Steel bullish on Sri Lanka

Wednesday, 11 July 2012 01:16 - - {{hitsCtrl.values.hits}}

Buoyed by Sri Lanka’s new growth, Tata Steel, the $ 83 b Indian conglomerate Tata Group’s victorious Fortune 500 entrant this year, wants to expand its presence in the country.

“Now we are very comfortable about our long-term commitment in Sri Lanka. We want to invest more here,” said a buoyant Sunil Baskaran, Executive in Charge – Global Wires of India’s TATA Steel Ltd. Baskaran, the top TATA executive, was apprising Minister of Industry and Commerce Rishad Bathiudeen yesterday at the Ministry of Industry and Commerce in Colombo.

Baskaran was making a courtesy call on Bathiudeen on 10 July and accompanying him were C. Srivatsan (CEO-Lanka Special Steels Ltd., the Sri Lankan subsidiary of Tata Steel) and Pravin De Silva (Head of Finance and Accounts of Lanka Special Steels Ltd).

For the first time in Fortune 500 history, this year both Tata Steel and Tata Motors have entered the global rankings. Tata Steel is ranked at 401 and Tata Motors at 314. The conglomerate Tata Group itself is considered India’s No. 1 firm (many calling it ‘India’s Pride’ due to its position and 140-year-history).

The group comprises over 100 operating firms in communications and information technology, engineering, materials, services, energy, consumer products and chemicals and operates in more than 80 countries across six continents, exporting products and services to 85 countries.

According to Tata Group, the total revenue of Tata companies, taken together, was $ 83.3 billion in 2010-11, with 58% coming from business outside India. Tata companies employ over 425,000 people worldwide. Tata Consultancy Services (TCS), its IT consultancy and service arm alone, represents 10% of the total Indian IT services industry revenue.

“Sri Lanka has a bright future. We are now looking at investing here on a 10-15 year timeline and no less. We at Tata see the entire world and to us Sri Lanka is very promising,” added Baskaran.

Bathiudeen said: “As a result of the vision of President Mahinda Rajapaksa, Sri Lanka’s economy is on the upswing. I believe this is the right time for Tata to expand here and your expansion here will be a strong boost to our metal and steel sector. We invite Tata Group to partner with the new Sri Lanka. We shall gladly afford any support that we can possibly provide you. You are already present here for some time as Lanka Special Steels, giving employment to 150, for which we thank you.”

Lanka Special Steels (LSS) commenced operations in Sri Lanka in November 2003. “It was Tata Steel’s first overseas acquisition. LSS is the sole manufacturer of GI wires in Sri Lanka and caters to the commercial galvanised wires market for end uses like barbed wires, wire meshes and chain, thereby garnering market leadership position in the segments that it serves. In 2011, we reported $ 1.7 b turnover,” revealed Srivatsan.