DDN Correspondent

The chairman of Tata Steel Cyrus Mistry has said that the company would face tough challenges in the next two years but the company will battle all odds riding on a host of initiatives including "right-sizing of manufacturing assets".

"In the face of volatile raw material prices and systemic weakness in demand in key markets, the next 18-24 months will be challenging for Tata Steel. However, I believe, we will emerge on a stronger footing, through a series of management initiatives targeted at strengthening our core operations including investment in select facilities, product rationalisations and right-sizing of manufacturing assets," Mistry said in his first annual letter to company’s shareholders as chairman.

Mistry however, did not divulge much information about ‘right-sizing the assets’. Mistry’s letter is part of the annual report of the company.

Sources added that Tata Steel could offload some of its assets in the coming months to repay part of its Rs 55,421 crore debt. The company could also use the money to fund its new plant in Odisha.

Tata group sold its stake in group firm Titan Industries in 2011-2012 and also offloaded its total stake in Sila Eastern and in Wuxi Ltd (China).