In an effort to reduce costs and increase productivity, India’s oldest steelmaker, Tata Steel is to restructure its domestic business, claims a report by The Economic Times.
Imported steel from China and poor demand are the chief reasons behind Tata’s decision to restructure the business and it will take place across all sectors and business functions including human resources, production, transportation and marketing.
Companies such as EY, KPMG, PwC and Deloitte are likely to be involved in Tata’s restructuring, it is claimed.
In India Tata Steel has the capacity to produce 10Mt of steel annually. It has a workforce of 36,957. Arch rival JSW Steel produces 14.3Mt/yr and employs just 12,271.
Whether Tata’s plans include job losses is not certain. It is believed that the company will be looking at increasing the productivity of its assets.
The Indian steel industry is being badly hit by cheap imports, not just from China but from Japan and South Korea. While profitability is being hit across the board, Tata’s position is a little worse as the company’s UK business is already loss-making despite ‘continuous restructuring’.
Source: The Economic Times.