‘India strongest part of our steel portfolio’
NEW DELHI : T.V. Narendran, who will start his new term as Tata Steel Ltd’s chief executive and managing director, highlighted the challenges the company faces in Europe, even as he emphasized that the Indian operations remain “structurally the strongest part" of the steelmaker’s portfolio. “The first five years were all problems, the second was more inorganic growth, and these five years, hopefully, will be more organic growth," he said.
Having successfully weathered the ups and downs of a cyclical industry, Narendran’s tenure was extended by five years starting in September. In an interview, he commented on a wide range of issues relevant to the company and the sector. On European operations, he said the company’s operations in the Netherlands would be able to sustain itself through its earnings and support from the government, but the UK operations remain a concern.
Edited Excerpts: India is structurally the strongest part of our portfolio. That’s why we want to grow in India as fast as possible. The Netherlands is unique, as it can support its own transformation and, on an ongoing basis, is not really a challenge itself.
The UK (operations) is always a challenge. So, it’s like this; we are comfortable that the Netherlands business can support its transformation from the cash flows that it generates from the support that I expect to get from the government. If you need to borrow some money on the Netherlands balance sheet, we can do that, and that can be serviced out of the cash flows.
The concern is the UK operations, where the cash flows of the business can’t support the transformation. The support of the government is even more critical and hence the conversation with the government. So, I think in both these
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