Tatas hungry for more

Fresh from the Corus acquisition, Tata Steel said it would take the inorganic route for meeting half of its capacity expansion target in the next eight years.

To possess the 100-million tonne capacity by 2015, the company is looking at adding another 29 million tonne through the acquisition route. Tata Steel's acquisitions "" all of them overseas "" add up to 21.4 million tonne, with Corus accounting for 18.2 million tonne, Natsteel two million tonne and Millennium Steel 1.2 million tonne.

Addressing a press conference in Jamshedpur, B Muthuraman, managing director, said of the 100 million tonne, Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions.

Muthuraman said the company would focus on its greenfield projects now. The company has lined up a series of greenfield projects in the country and outside.

The projects will add 6 million tonne in Orissa, 12 million tonne in Jharkhand and 5 million tonne in Chhattisgarh. In the international market, the company recently received approval for setting up 3 million tonne plant in Iran and there are plans to set up 2.4 million tonne capacity plant in Bangladesh, which has hit a roadblock.

This is besides the expansions at the existing plant in Jamshedpur. Muthuraman said it was not be possible to expand at Jamshedpur beyond 10 million tonne.

He reiterated that the Corus acquisition would not affect the company's ongoing expansion plans. Tata Steel will also finalise the financial structure for the Corus buyout by the month-end. The extraordinary general meeting (EGM) for Corus shareholders will be held on March 7.

The deal would be funded by a 60:40 debt equity ratio.