Tata Steel Ltd. is aiming to boost capacity at its recently acquired Tata Steel BSL to 8.3 million tonnes of steel per annum from 5.6 million tonnes, India's Live Mint reported Oct. 15, citing the latter's new managing director, Rajeev Singhal.
Tata Steel acquired Tata Steel BSL, formerly Bhushan Steel Ltd., for 353 billion Indian rupees May 18.
A spokesperson for the company had no comment regarding the capacity expansion's timeline.
Singhal said the company is looking for the Bhushan Steel plant to run at full capacity within two years. "Our immediate focus area is to stabilize operations and realize the full potential of the company," he said in an internal magazine of the Tata group.
"The aspiration is to reach an EBITDA margin of 25% on purchased raw material basis and be the benchmark," Singhal said. Tata Steel, excluding Bhushan Steel, had an EBITDA margin of 31% in the April to June quarter.
In addition, Tata Steel CFO and Executive Director Koushik Chatterjee said, "I won't call this a race (to the top). The primary focus is running your own course. It is important to be value-driven, rather than just volume-driven … (But) we will certainly be aggressive in the market place and in volume growth."
As of Oct. 12, US$1 was equivalent to 73.59 Indian rupees.