In this challenging environment, SAIL has identified 5 core areas on which it will focus
NEW DELHI: Country’s largest steel maker SAIL on Sunday said that it is planning to spend up to Rs 4,000 crore on the modernisation and expansion of its plants in the coming fiscal, despite the fact that the steel sector facing challenging business environment.
“The Capex for the ongoing fiscal is nearly Rs 4,000 crore (2016-17). Next fiscal it should be similar range, somewhere between Rs 3,000 to Rs 4,000 crore,” SAIL Chairman P K Singh told.
With the business environment becoming extremely challenging for the steel sector, it has identified five core areas, including optimisation of new assets utilisation, to turn impending challenges into opportunities. The announcement comes at a time when there is a slump in the demand for steel.
“At this crucial juncture for steel industry across the world, SAIL management realises that business environment has become extremely challenging. Thus the company, in a recent meeting of top management, devised appropriate responses for the impending challenges to turn them into opportunities,” Steel Authority of India Ltd (SAIL) said.
Five core areas were identified, including ensuring quality and cost effective input, achieving production excellence, optimising new assets utilisation and leveraging human capital.
SAIL is focusing on developing high-impact leadership amongst its ranks for which it is sensitising talented young executives to drive the top management’s agenda of ‘change’ and for transforming the PSU into a vibrant organisation.
With this aim in sight, SAIL Chairman P K Singh and other directors interacted with young managers for re-energising them and reshaping their perspective on leadership.
The session was part of a four-day training programme organised at SAIL Management Training Institute (MTI) in Ranchi and was attended by around 100 young executives.
SAIL, which has reached the last leg of its Rs 70,000 crore modernisation programme, had earlier said post modernisation there would be 60-70 per cent jump in production capacity which is a challenge for the PSU as demand for domestic steel remains weak.