Tata Steel Graphene Development Centre has recently produced corrosion-resistant graphene paint and supplied graphene powder to renowned tyre companies. They are targetting 30 per cent revenue from non-core businesses in five years.
“From setting up scrapyards to steel recycling plants to developing new materials such as graphene, Tata Steel is looking to seed new businesses in a bid to limit the impact of uncertain steel pricing on its revenues.
TV Narendran, Managing Director, Tata Steel, told BusinessLine that 30 per cent of the company’s revenues would come from non-core businesses in five years. Currently, it gets about 10 per cent of its revenue from these initiatives.
“We are planting the seeds of the future. One seed is the service and solution, the other is our new materials business, where we are working with graphene,” said Narendran. In the new materials business, Tata Steel is working with graphene. With the increasing threat from alternative products, the company is focussing on developing advanced material to protect its margin and bottom line.
It has also demonstrated the potential of graphene inks, which are used in the printing of train tickets, plane boarding passes, and RFID (radio-frequency identification) tags. Like other conductive inks, graphene ink can be used to create printed materials that conduct heat and electricity.
Narendran said that the company is working with Indian Railways to coat coaches with graphene from the inside. The company is also working on various other applications for graphene with a target to generate 10 per cent of overall revenues from new materials, he said.
The company is also getting into the steel recycling business in a big way. “We are setting up our next centre, which will come up next year, near Delhi. We are also setting up scrapyards in all regions,” said Narendran.
Read full article Tata Steel eyes new businesses to tackle future challenges
Source: Hindu Business Line by Suresh P Iyengar / Thomas K Thomas
Image: Jamshedpur Tata plant.