Amid auto slump, Tata Steel unit in Maharashtra’s Tarapur cuts output by 15%

The 3-lakh tonne Tata Steel plant at Tarapur in the Palghar district north of Mumbai, caters to nearly 30% of Tata Steel’s supplies to the autom
...
Tata Steel’s capacity utilisation has come down to 85% from last fiscal year’s 100%.
Tata Steel’s capacity utilisation has come down to 85% from last fiscal year’s 100%.

The deepening slowdown in the automotive sector has resulted in Tata Steel's cold rolled steel unit here cutting production by 15% since the past six months.

The 3-lakh tonne plant at Tarapur in the Palghar district north of Mumbai, caters to nearly 30% of Tata Steel's supplies to the automotive sector.

The prolonged slowdown is also likely to impact sales from the plant this year as capacity utilization has come down to around 85% now, a senior company official has said, adding last fiscal, the plant had revenue of 1,200 crore.

Also check these Vehicles

Find more Cars
Tata Nexon (HT Auto photo)
Engine Icon1497 cc FuelType IconMultiple
₹ 8.10 - 15.50 Lakhs
Compare
View Offers
Tata Tigor (HT Auto photo)
Engine Icon1199.0 cc FuelType IconMultiple
₹ 6.30 - 9.55 Lakhs
Compare
View Offers
Tata Curvv (HT Auto photo)
UPCOMING
Engine Icon1198 cc FuelType IconPetrol
₹ 15 - 20 Lakhs
View Details
Tata Harrier (HT Auto photo)
Engine Icon1956.0 cc FuelType IconDiesel
₹ 15.49 - 26.44 Lakhs
Compare
View Offers
Tata Punch (HT Auto photo)
Engine Icon1199.0 cc FuelType IconPetrol
₹ 6 - 10.10 Lakhs
Compare
View Offers
Tata Avinya (HT Auto photo)
UPCOMING
Range Icon500 km
₹ 30 - 60 Lakhs
View Details

"The slowdown in the auto sector has impacted us since the past six months. Our capacity utilisation, which used to be 100% till last fiscal has come down to 85%," Tata Steel's head of cold rolling complex (west) Ujjwal Desai told a select group of visiting reporters.

He said the inventory at the factory has also piled up as dealers have not picked up the finished products.

"We had witnessed a similar slowdown in FY01. However, we are hopeful that there would be a revival soon," he said, adding since September there has been a slight improvement in the demand sentiment.

But revenue growth for the current fiscal may be impacted. Last year the company had reported revenue of 1,200 crore, he added.

"We are also setting up an acid regeneration plant in this complex which will be commissioned in early 2020. So far we have been outsourcing the job to others, but we felt we can do the job ourselves," Desai added.

First Published Date: 19 Oct 2019, 17:49 PM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.