A paucity of ideas for research, and not funds, is responsible for low spends by the industry on R&D projects, T.V. Narendran, Tata Steel Managing Director India & South East Asia, said here on Saturday.
“ It is true that R & D spends are low ( it is (0.3 per cent for Tata Steel), but the issue is not about money or the cost of the project,” Mr. Narendran said while speaking at the opening session of Metals 2017 a symposium organised by the Bengal Chamber of Commerce and Industry. “The issue is about project ideas.”
Focussing on the auto and the construction industry, he said that these two sectors account for 70% of India’s steel demand. “While auto sector had a smaller share in this demand.. it is a marker.. it is a discerning and demanding customer”, he said.
The recent Make in India initiatives by the Centre and the emergence of India as a hub for small-car companies should generate increased demand for steel, he said.
“Tata Steel , a long-term partner of the automobile industry looks forward to this, along with other major steel producers like JSW and Essar,” Mr. Narendran said. However, the increased safety norms and the emission norms place fresh demands on the type of steel to be used.
In this context, he rued that processing-facilities were not keeping up with the demand. “They are a volume player and they need to move to become a value player,” he said.
Branded products
In response to a query on Tata Steel’s retail forays in Myanmar and Bangladesh markets, he said that these were being explored for offering branded products.
Malay Chatterjee, Chairman and MD of Kudremukh Iron Ore and Company Ltd highlighted the logistics problem in iron ore transportation and also flagged the issue of inadequate R & D spending.
BCCI president Sutanu Ghosh said that minerals and metals industry is a critical sector driving growth of the Indian economy. As per expert’s estimates, for every 1% increase in mining and quarrying activities, industrial production increased by 1.2-1.4 % correspondingly, GDP growth increased by 0.3-0.4 %.
