By IANS
Kolkata : The merger of Tata Steel with Corus will lead to a saving of $400 million to the company after three years, Tata Steel managing director B. Muthuraman said here Friday.
“The Tata-Corus on-going merger will provide $130 million savings this year till March 2008. After three years, the integration will lead to $400 million yearly savings to the company,” Muthuraman told reporters at the 34th National Management Convention (NMC).
He said the Corus group has developed a breakthrough technology to reduce cost of steel production and Tata Steel was planning to adopt the technology in the near future.
“We are looking at alternative technologies to reduce the cost of steel production and it will take the next couple of years for us to take up the new technology for steel production,” Muthuraman said.
“We are witnessing about 14 percent demand growth in the domestic steel sector every year. The company is also preparing a vision document for 2015 which would be completed by December this year,” he said on the sidelines of a three-day management seminar, jointly organised by All India Management Association (AIMA) and Asian Association of Management Organisation (AAMO).
“We are not worried about the capacity additions in neighbouring China. India has joined the race and is adding capacities rapidly,” Muthuraman said.