|
 Every
week Ronnie Screwvala lunches with India's corporate bigwigs
in BBC World's acclaimed business programme Business Bites.
Filmed in some of the best restaurants in India, the programme
takes those people defining the country's economy away from
the formality of a TV studio to offer an insider's look at
the industries being examined.
This weekend's
edition features two of the most high profile CEOs from the
steel industry in India - B Muthuraman, Managing Director,
Tata Steel and Prashant Ruia, Managing Director, Essar Steel.
 |
|
Prashant
Ruia
MD, Essar Steel
|
The two
CEOs talk about the prospects of increasing steel consumption
in the domestic market, the prospects of an Indian steel company
actually being able to compete globally with international
giants and if they think India will ever be able to compete
with China in terms of demand for steel.
When asked about the prospect of an Indian steel company ever
becoming a truly global conglomerate, Prashant Ruia says that
"So
far our focus has largely been domestic, but Indian companies
are realising that eventually to compete, we have to concentrate
more on exports. Not only that, we also have to re-look the
entire production cycle, and more and more companies are looking
at setting up base abroad."
Commenting
on why Indian steel companies do not pay enough attention
to branding:
Ruia
says,
|
Muthuraman
feels, |
| "One
reason could be that steel has traditionally not been
used by the end consumer. We do not sell to the end consumer,
and hence have never looked at building consumer awareness.
But that is bound to change, and we now sell premium steel
as a separate brand." |
"Technologically,
steel is a complex product, and inherently, companies
have been concentrating on technological innovation
and hence enough emphasis has not been given to branding."
|
B
Muthuraman
MD, Tata Steel |
According to B Muthuraman, the fact that majority of the demand
for steel comes from China is a cause of concern. "But
the chances of China slowing down are not very likely. And
even if China slows down in a decade or so, by then India
will catch up".
India Business Report: Business Bites
Sunday, 6th February. 11am, 10pm.
|
