October 2007 | Sujata Agrawal
Tayo Rolls has a plan in place to achieve high-octane growth, and its main components are cutting-edge technology, employee enthusiasm and boundless ambition
Paanch saal me paanch guna — five fold in five years — that’s the vision driving the growth strategy of Tayo Rolls, India’s leading anufacturer and supplier of steel rolls. The ‘five’ fixation does not end there. “We have defined our growth in terms of panchshul (five directions), growth in the same business, backward integration, acquisitions, diversification and alliances,” says Pradeep Srivastava, the managing director of this Tata Steel associate company, who co-created the vision with his employees in 2005.
To realise its high ambitions, Tayo Rolls will have a whole lot more to do, expand capacity, increase exports, upgrade technology and empower employees. Can the company make good on its aspirations? Srivastava, for one, has no doubts it can. “There are big opportunities ahead and the last few years have shown that we can deliver,” he says.
In 2005, as a step in backward integration, it set up a mini blast furnace (MBF) with a capacity of 40,000 TPA to manufacture foundry grade pig iron.
Tayo Rolls will now produce forging quality ingots, engineering forging for oil, gas, steel, energy and infrastructure sector apart from its main product of forged rolls. This will be the largest brownfield expansion programme at Tayo since its inception. Production is expected to commence in 2008. This will make Tayo, the only company in the world to have a totally integrated facility for cast and forged rolls at a single location. “This will ensure a turnover of more than Rs500 crore by 2010,” says Srivastava. This project is a strategic fit for Tata Steel with Corus in its fold and will result in significant value creation within the group.
There has been a steep jump in input costs without a corresponding increase in realisations. Add to that the not-so-small matter, of intense and increasing competition from the likes of China, the crashing of trade barriers and the appreciation of the rupee against the dollar.