India has blasted onto the global scene with the Tata Corus Deal. Ratan Tata has made an Indian company the 5th largest producer of steel in the world. This is very important for a number of reasons. We Indians are so used to Indians losing on the Worldstage. Starting with Indian Cricket, Sania Mirza, the list goes on and on, Indians have always been 'also ran'. Indian businessmen will hopefully start showing that India can win on a global scale. Not just because IT has done India proud but because India can run a global company better than anyone else.
The downside maybe that India and China are the Worlds fastest growing markets. The world is coming to India to benefit from this fast growth. An Indian company going to Europe where there is slow growth may not sound like smart business. But one must think that this is high value steel. Corus sells steel to the most sophisticated customers in the world in Europe. Tata can emulate the quality required by these customers and follow the same quality standards in India. This will reduce Indian imports. All new expansion for Corus will be done at a lower cost in India.
Gradually Tata can make Corus the 2nd or 3rd largest player in the steel Industry by using low cost Indian manufactured steel at the same quality.
Tata needs to use any downturn in the steel Industry to consolidate in India and gradually shift all new manufacturing to India. Corus will not allow replacement of Corus steel manufacturing in India. But in a downturn there will be no choice but to downsize.
Tata steel can expand in fast growing markets with the Corus quality manufactured in India. An Indian Company can make this deal work by strategic management.
Shame on the sceptics. An aggressive Tata group can show the rest of India the way into the future for Indian Industry
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