Online edition of India's National Newspaper
Saturday, Oct 30, 2004

About Us
Contact Us
Business
News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts:
Classifieds | Employment | Obituary |

Business Printer Friendly Page   Send this Article to a Friend

Tata Steel inks deal with L&T for Orissa port

By Our Staff Correspondent

MUMBAI, OCT. 29. Tata Steel today signed definitive agreements for a joint venture with Larsen & Toubro (L&T) for the Dhamra Port project in Orissa. The two companies are participating on a 50:50 basis in the joint venture, Dhamra Port Company.

The project is estimated to cost Rs. 1,500-1,700 crores and will have a handling capacity of 25 million tonnes annually in the first phase. The project is planned over two phases and is expected to commence operations in December 2007. The company will initially build a bulk terminal with a capacity to handle 5,000 tonnes per hour.

The Dhamra Port project will be a major enabler for the economic development of Orissa and adjoining regions.

Ramakrishna, Deputy Managing Director and President (Operations), L&T, said Dhamra would be the deepest port in India with an 18-metre draft. In the first phase, it would have a capacity to handle 20 million tonnes of cargo and in the second phase, this could go up to 40 million tonnes. In the second phase, a container terminal and if feasible, even an oil terminal would be considered.

B. Muthuraman, Managing Director, Tata Steel, said the port also included a 62.5 kilometre railway line, which would be constructed and operated by the joint venture. Both partners would contribute up to Rs. 330 crores to the equity of the company while the balance would be raised through debt. Tata Steel's new plant site is located at around 60 km from the port.

Jump in Q2 net profit

The company's results for the period ended September 2004 have been encouraging on the back of improved margins and better product mix. For the quarter ended September 2004, Tata Steel announced a 130 per cent jump in net profit at Rs. 929.59 crores (Rs. 403.10 crores) on sales of Rs. 4,107 crores (Rs. 2,940 crores). The operating profit was at Rs. 1,629 crores (Rs. 756 crores). For the period, steel production was at 1.08 million tonnes (1.03 million tonnes) and sales were at 1.02 million tonnes (1.04 million tonnes). The export turnover was at Rs. 596 crores (Rs. 335.13 crores).

For the half year ended September 2004, the net profit was up 150 per cent at Rs. 1,675 crores (Rs. 670 crores) on sales of Rs. 7,513 crores (Rs. 5,464 crores). The operating profit was at Rs. 3030.90 crores (Rs. 1431.50 crores).Steel production for the period was at 2.08 million tonnes (1.99 million tonnes) and sales was at 1.9 million tonnes (1.92 million tonnes). The export turnover was at Rs. 1,020 crores (Rs. 698.5 crores).

The company will also go for a planned shutdown for the `G' blast furnace for 100 days from December 2004. The Furnace will be commissioned in March 2005 and involves a capital expenditure of Rs. 515 crores. Expansion plans

The company is expanding capacity by one million tonnes at Jamshedpur. Also, the company's 2.4 million tpa HR coil expansion is to be completed by August 2008 after which it will have a capacity of 7.4 million tonnes. The capital expenditure for the Jamshedpur expansion is Rs. 7,800 crore up to 2008. Tata Steel is also looking at a greenfield opportunity in Orissa and would announce its plans later. The company would also consider expanding its cold Rolling capacity later.

Mr. Muthuraman said this year, global production of steel was up 8.7 per cent at 763 million tonnes (January-September 2004) and the global demand was expected to be up 7.6 per cent in 2004 at 950 million tonnes.

There are signs of consolidation in the global steel industry and that was good for price stability as a whole. "I hope consolidation happens in India also as we need strong players in the market. In the second half of the year, it is likely that steel prices in the market are likely to go up but Tata Steel will hold its prices till March 2005,'' said Mr. Muthuraman.

Printer friendly page  
Send this article to Friends by E-Mail

Business

News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts:
Classifieds | Employment | Obituary | Updates: Breaking News |


News Update


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |

Copyright 2004, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu