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Welcome to TATA Metaliks

Operating Environment

ONGOING COVID CRISIS AND ITS EMERGING DIMENSIONS

Description

During 2020, the pandemic wreaked havoc on almost every business, and the global economy experienced one of the worst crises ever in history. However, a significant recovery was evident towards the second half of the year, aided by Government policies and hopes triggered by the vaccine drive. The International Monetary Fund forecasts that the global economy is likely to grow by 6% in 2021. ICRA expects India’s GDP growth to be 8.5% in FY 2021-22, and possibly higher if the vaccination programme is accelerated.

 

Opportunities or potential risks

In 2021, global steel demand is predicted to rebound strongly in both developed and developing economies. Steel demand in emerging economies is expected to recover faster than in developed economies. However, the rate of recovery will depend on the emerging uncertainties of the pandemic and the pace of the vaccination roll-out.

 

Our response

The pandemic-induced restrictions heavily affected the manufacturing and service sector. In response, we proactively managed our business operation by enabling AI-based solutions for social distancing and followed stringent protocols inside the plant. Moreover, we have helped underprivileged communities near our plants through our CSR initiatives and voluntary contribution from employees.


DIGITAL FORCING APARADIGM SHIFT IN STEELAND METAL INDUSTRY

Description
A revolution has occurred across almost all industry sectors due to the rapid adoption of advanced digital technologies such as Artificial Intelligence. The pandemic has accelerated this trend like never before and companies are leveraging digital for improving manufacturing and people processes as well as for delivering a superior customer experience.

Opportunities or potential risks
Lack of a coherent digital strategy can derail progress. There is a need for equal focus on building a digital first culture, in addition to implementing digital solutions

Our response
We are implementing digital technologies in our critical processes, as part of our strategic focus on ‘Innovate and Excel’with strong focus on Digital Culture and Capability building. Our digital transformation initiative emphasises three primary themes: Real-time Data Analytics,Smart Machines, and Business on Mobile.


INDIA’S RENEWED FOCUS ONWATER INFRASTRUCTURE

Description
Under the UN SDGs, water has been recognised as a critical issue, and member nations around the world are committed universal and equitable access to safe and cheap drinking water for all by 2030. The Indian Government has taken up the cause of water infrastructure and made it the focus of social and economic development through the Jal Jeevan Mission.

Opportunities or potential risks
The Indian Government in its Union budget for 2021-22, allocated `50,000 crore for the Jal Jeevan Mission. The allocation for the Department of Water Resources has increased by more than threefold. It offers significant opportunities for manufacturers of pipes (especially DIP), valves, pumping systems, and other auxiliary businesses.

Our response
We are certain that our business’ long-term growth drivers remain intact because we operate in a sector that is critical to India’s socio-economic progress. In keeping with our strategic priority of ‘Focus on Downstream/Value-add,’ we are steadily expanding our DIP business.


LOW DEMAND OF PI FROMFOUNDRIES

Description
India is a large producer of Pig Iron (PI).With the Government launching the Aatmanirbhar Bharat Abhiyan’ to make India self-sufficient, expansion in the industrial sector will keep PI demand at acceptable levels. However, the foundry industry may continue to face a challenging operating environment in the short-term due to rise in input costs,labour shortages etc.

Opportunities or potential risks
The foundry industry is likely to get support from favourable policy initiatives, such as Atmanirbhar Bharat. Policy initiatives in the area of EVs may have a big impact on castings demand for automotive which is a major consumer of PI.

Our response
We manufacture around 5.5 lakh tonnes of hot metal per year, of which over 2 lakh tonnes are converted to DIP and the rest into PI. With this, we will continue to take advantage of the PI industry’s prospects by maintaining a solid market share and earning a premium for our superior offerings as the demand revives after the pandemic-induced uncertainties.


REGULATORY COMPLIANCEFOR EMISSION CONTROL

Description
With climate change as one of the most pressing issues of our times, India pledged through its Intended Nationally Determined Contribution (INDC), to reduce the intensity of its greenhouse gas (GHG) emissions by 33-35% by2030 compared to the 2005 levels.However, due to the economic impact of COVID-19, India’s emission forecast sin 2030 are 9-12% lower than earlier projections in 2019.

Opportunities or potential risks
While India has taken appropriate steps to decarbonize its carbon-intensive economy,several recent policy measures targeted at stimulating the economy are expected to result in higher carbon emissions.Substantial efforts have been made to reduce CO2 emissions throughout industrial sectors, and clean energy resources can be produced through technical innovation,research, green job creation, clean energy production, the adoption of e-mobility, and acceptance of coal-phase-out regulations.

Our response
Even though the Government of India has not mandated any target for emission control, we have taken several steps towards controlling emissions by adopting recycling, energy efficient interventions,utilising byproducts, setting up a 1MWpsolar plant, and deploying Electric Vehicles(EVs) inside the plant.