March 2024 | TATA Steel Tubes, led by Mr. Sanjay Sahni, Executive-In Charge, is embarking on an ambitious journey to triple its growth by the year 2030. Currently boasting a capacity of 1.2 million TPA through four manufacturing facilities located in Jamshedpur, Khopoli, Sahibabad, and Hosur, alongside nine tube manufacturing partners (TMPs), the division eyes an expansion to 4 million TPA by 2030. This strategic move aligns with TATA Steel’s plan to achieve a 40 million TPA capacity by the same year.
To realize this vision, TATA Steel Tubes is primed to intensify efforts to bolster its customer base, particularly in the retail and construction sectors. According to Mr. Sanjay Sahni, plans are underway to establish new manufacturing facilities and service centers across strategic locations, amplifying their footprint in the market.
“Plan to go aggressive”
In a recent discourse with Tube & Pipe India, Mr. Sanjay Sahni shed light on the division’s trajectory, product offerings, and market strategies. He highlighted the division’s robust growth, clocking a Compound Annual Growth Rate (CAGR) of 11 percent over the past five years, with recent acceleration to 16 percent in the past nine months, surpassing FY23 figures. Notably, a significant milestone was the seamless integration of TATA Steel Meramandali Tubes business in 2022, diversifying the product portfolio and venturing into the oil & gas sector.
“Our short-term plan is to expand our presence on both the digital and distribution fronts across the country. We plan to go aggressive in increasing our customer base specifically in the retail and construction segment. We are in the process of adding new manufacturing facilities and service centres across locations which will be key to our growth. Our focus is to develop our customers to have a strong inclination towards structural tubes and their advantages. We are incubating products to grow in the services and solutions space. TATA Steel Tubes division is also working on adopting DFT technology and its stabilization for future expansion.” said Mr. Sahni.
The division’s commitment to innovation is evident in the introduction of new products such as high aspect ratio tubes, offering sustainable alternatives to conventional materials like wood and plastic. Actively engaged across various segments, the division has played a pivotal role in crucial infrastructure projects nationwide, including airports, metro rail networks, railway stations, and extensive gas distribution networks.
The Tubes Division’s offerings span across four broad categories: Structural Tubes, Conveyance Tubes, Precision Tubes, and Pipes for Oil & Gas, catering to diverse market segments. Their manufacturing prowess, backed by cutting-edge technology, ensures adherence to stringent quality standards and customization to meet specific customer requirements.
Boom in steel-based construction expected
“The Ministry of Steel has been very active in promoting the usage of structural steel in India. The Indian economy is rapidly growing, sustained by good infrastructure spending and by investments by businesses from both inland and abroad. Several initiatives including affordable housing, expansion of railway networks, transmission and distribution, water supply, and sanitation projects are set to drive the rise in demand in the construction space. To support the growth aspirations, structural steel is a natural choice as a construction material. There has been an increasing trend of steel usage in both residential and commercial sectors. With the growing confidence of architects and the engineering community in structural steel, we can expect a boom in steel-based construction in our country.” adds Mr. Sahni.
Currently operating at a capacity of 1.2 million TPA, the division’s manufacturing facilities leverage both in-house capabilities and collaborations with TMPs, with plans for further expansion in the pipeline. Recent additions, including two new manufacturing partners and enhancements to existing ones, have augmented capacity by 172 thousand TPA in the past nine months.
Looking ahead, the Tubes Division remains poised to capitalize on burgeoning opportunities in the Indian tubes and pipes market, projected to witness exponential growth in the coming years. Challenges such as raw material price volatility and market dynamics necessitate strategic foresight and adaptability.
In the global arena, the tubes and pipes market is undergoing a transformative phase, driven by sustainability imperatives and technological innovations. According to TATA Steel, the company remains committed to aligning with these shifts.
(Source: Tube&Pipe India/2024)