Tata Steel to take train ride
AGENCIES
MUMBAI, APRIL 13
Tata Steel will sell more steel to government-funded projects and to the Railways to enhance steel sales in the last quarter of 2008-09. These sectors have maintained their level of spending even as steel companies are facing lower spends and a consequent shrinkage in demand in other consumer sectors.
The company has also diversified its product-mix with steel sales touching 1.7 million tons between January and March 2009. Out of this, exports alone accounted for 250,000 tons.
It managed to cut its average inventory level in the fourth quarter of 2008-09. For long products, it was left with an inventory of 21 days on Apr 1, 2009. For flat products, the inventory was down to 7-8 days by the end of 2008-09. While the company had an inventory of Rs 12 billion on Jan 1, 2009, it had come down to Rs 5.59 billion by Apr 1, 2009. The company also saved Rs 4 billion by renegotiating shipping contracts.
