Tata Steel schedules to increase local buying

Tata Steel schedules to increase local buying

Indian steelmaker Tata Steel is seeking participation of the local entrepreneurial units to take part in its growth plans for the coming years. The company desires to develop local suppliers for procurement of goods and services as well as for outsourcing many of its non core activities. Tata Steel's set target for the next three years is to double its local buying figure of Rupees 1'200 crore (approx. $250 million)by such a supplier development programme. The program to be gradually applied will be launched early next year. Tata Steel's suppliers are 50% from Jharkhand, with the total number being around 1'100. Approximately 85% of these are from Jamshedpur. Furthermore, 51% of the company's procurement of goods and services today, come from companies and service providers base in Jharkhand. Of this, Tata Steel's procurement from units around Jamshedpur came to around Rupees 1'000 crore, which is around 95% of all its local procurements.