Consultative approach to assist customers in realising a optimum and aesthetically appealing building design, proactive maintenance and safe construction practice are some of core areas Tata Bluescope will focus on says Piyush Nahar, GM – Marketing, Tata Bluescope Ltd

What is your strategy to expand business for existing product range?
Tata BlueScope’s strategy is to strengthen our position as amarket leader that offers premium quality and technological advanced colour coated steel products and solutions to our customers. Our operational efficiencies with a robust supply chain have always been our forte, we will further enhance our capacities and capabilities to cater to customer needs. Being one of the largest end to end solutions provider for the coated steel industry; we are focusing on value creation for our customers with value added services such as consultative approach assisting customers to have a optimum and aesthetically appealing building design, proactive maintenance, safe construction practices, to name a few. While the awareness and demand for green products is on the rise, we continue to offer thermally efficient and environmentally friendly products and solutions. Strengthening presence in existing markets while exploring newer territories will always be in parallel to all other initiatives.

What are the challenges you see are faced by the industry in dealing with upcoming demand and supply?
Challenges on macro-economic front:
India’s GDP reached 5.0% for Q1 FY20. While India continues to be one of the fastest growth economies, liquidity concerns due to increased NPAs in NBFC as well as banking sector along with slowdown in consumption in certain segments is impacting growth. There is further drag on overall economy due to excessive rains and floods in some part of the country.There are other uncertainties like China’s overall steel demand and supply situation, global trade scenarios and crude prices. However we feel the worst is behind us and consumer sentiments should pick-up especially with the festival season around. This will drive the demand and overall growth expectations.

Demand Side Challenges:
Customers especially from PEB segment expect agility from suppliers in terms of shorter delivery lead times, variety of colours, design, types etc. However steel plants accustomed to produce bulk volumes in standard sizes need to drive a mind-set change to cater to these expectations. At times this affects the overall project completion timelines, leading to delays. Our focus in such areas is always to meet customer demands through our agility, multi-locational presence and customer centric approach.

Operational challenges
Due to low entry barriers, many roll formers are entering markets setting up shops in an unorganised way without proper technical support like design and engineering. Due to compromised quality in machinery or equipment sourced, inadequate safety training programs and absence of safety culture, has led to increased fatalities on project sites. Unskilled workforces and inappropriate installation practices affect the overall structural instability, corrosion, leakages and longevity of the product / building in the long run.

What is your expectation from the industry bodies and policy makers to capitalise the present market?
India being the third largest steel consumer (after China and USA), India’s per capita steel consumption at 70-74 Kgs, is one-third the global average of 225 Kgs. To achieve a target of USD 5 trillion economy, it is imperative to boost the steel industry which is one of the strong pillars of our economy. Apart from right policies in place, it is imperative to focus on new technologies and product innovationsconduciveto promote internal growth of steel consumption. Government has taken slew of measures to tackle current signs of economic slowdown. This is a positive step for the long term but a demand pick-up in the near term will depend on increasing spends and speed of execution for public infrastructure creation such as rails, metro and airports. Infrastructure creation will spur demand for steel products.Conducive environment for new investments in manufacturing plants, residential and commercial real estate will further boost market sentiments.

What is your company’s outlook for 2022?
Tata BlueScope Steel offers premium colour coated steel products for the building construction industry where we have a leadership position with a healthy market share. We will continue to increase the same through our value driven, customer centric and solutions approach in the next 2-3 years. Steel industry is expected to grow at a 6% CAGR in the medium term. We are focusing on value creation for our customers which will lead to faster than market growth for us. We continue to evaluate opportunities and will augment capacities and infrastructure for a sustained growth.

Piyush Nahar, GM – Marketing, Tata Bluescope Ltd