Tata Steel Estimates Auto-Grade Alloy Sales Rose 15% Last YearAbhishek Shanker
Tata Steel Ltd., the biggest Indian producer, estimates sales of the alloy grade used in vehicles rose 15 percent in the year ended March. The shares rose.
“Tata Steel’s automotive sales could register a growth of 15 percent in financial year 2014 over 2013, primarily by replacing imports and weaning away share from competition,” Vice President Peeyush Gupta said in a newsletter posted on the company’s website. India’s vehicular demand may gain as much as 4 percent this year and the country’s alloy consumption may climb 5 percent, he said.
The Mumbai-based company will benefit from a revival in car demand as this year it started making high-end, automotive-grade products at its venture with Nippon Steel & Sumitomo Metal Corp., the world’s second-biggest steelmaker, Gupta said.
India’s annual car sales are poised to increase for the first time in three years as growth in Asia’s third-largest economy rebounds from the weakest pace in a decade, according to the Society of Indian Automobile Manufacturers.
Tata Steel shares gained 3.7 percent to 416.70 rupees at the close in Mumbai, the biggest gain since March 21. The benchmark S&P BSE Sensex index rose 2.9 percent.
Jamshedpur Continuous Annealing & Processing Co., the venture between Nippon and Tata, with 600,000 tons of annual capacity, produces cold-rolled coils and sheets for the local automotive market.