Tata Steel, the world's no. 7 steelmaker, Thursday said it is planning to bring specialty steel from its European operation to India as a part of its strategy to push products of the company's wholly-owned European subsidiary to new markets.
"Our European operation has high technology products and we are planning to bring those products which are currently being imported to the country (India)," Tata Steel managing director H.M. Nerurkar told reporters on the sidelines of the annual general meeting of Indian Institute of Metals here.
Since India was an importer of specialty steel, the products of Tata Steel Europe, the European arm of the company, had a market in the country, he said.
Nerurkar said Tata Steel, the biggest Indian steel company, was currently in the process of finalising quality and grades of the product and selecting probable customers of those products.
Everything regarding bringing European products to India would be finalised in another two months, he added.
This move of the steel major could pave the way for its European subsidiary to optimise its capacity.
Currently, the subsidiary is utilising around 85 percent of its production capacity.
Tata Steel's European business contributes 61 percent of its total revenue, but its European business reported a net loss of Rs.4,240 crore during 2011-12.
The company's core profit (after paying dividends) from its Indian business, however, registered a profit of Rs.4,700 crore in 2011-2012.
Optimising capacity of its European operation is expected to improve finances of its overseas business, which has been eating into the Indian profits.