Tata Steel to ramp up Tiscon sales to Rs 2000 cr

Current turnover at Rs 1500 cr, growing at 7% CAGR.

Helped by capacity addition and a wide dealership network, Tata Steel's long products premium brand Tata Tiscon is expected to touch Rs 2,000 crore sales in a little over three years.

"At present, Tata Tiscon has a turnover of Rs 1,500 crore and we expect it to grow at least by a compounded annual growth rate (CAGR) of seven per cent," said Sunil Seth, chief marketing and sales (long products) of the company. Currently, Tata Steel's long product business grosses about Rs 3,500 crore per year.

A small mover when launched in 2000, Tata Tiscon has seen a turnaround in the last three years. In 2002, its turnover was about Rs 350 crore.

"The brand has a market share of about 10 per cent, which should increase to 30 per cent in five years," Seth said.

Tata Tiscon products are used in the construction industry. The brand caters to the residential and non-residential segments.

The steel major has also targeted to touch the one million tonne sales mark for its long products next year. Currently, Tata Steel has a production capacity of about seven lakh tonne per annum of long products, which caters entirely to the domestic market.

The total long-product capacity in the country is around 10 million bars.

The steel major is also expanding the production capacity for long products from seven lakh tonne per year to 1.3 million tonne at its Jamshedpur plant. The plant will attain full capacity by FY07, said Seth.

"The brand now has a pan-India presence. The next two years will see the retail network increase from 1,500 to 2,200," said Seth.

The company has launched marketing campaigns in the construction industry and is also targeting budding architects to increase the brand awareness.

Tata Steel's other brands include Tata Steelium, Tata Tiscon, Tata Shaktee and Tata Wiron and the recently launched, Tata Structura.