Page 35 - Tata Steel One Report 2024-Eng-Ebook HY

Business Operation and Performance Driving Business Towards Sustainability Corporate Governance Policy Financial Statements Attachments
Information regarding the Company’s key risks and their mitigation strategies are as follows:
Macroeconomic and steel market risks
Quantum of low-priced wire rod imports
Mitigation Strategies
The Company has broadened customer reach and increased share in the wire rod market by developing customized products. The Company is continuing to invest to improve product quality and increase capability to produce high-end products. The Company has also improved product availability so that customers do not need to stock more and helps them reduce their working capital needs.
The Company also intensified its efforts in the export markets to increase reach, especially beyond ASEAN. The company focuses on exporting high-end products for Auto industry end use. Company’s wire rod is produced from scrap and through the Electric Arc furnace route. It has lower CO2 emission in comparison to Blast furnace route, opening potential opportunity to countries that have implemented CO2 emission regulations. Additionally, the company is pursuing certifications for international standards, to enhance credibility and to access new markets.
The Company will support Net Zero emission policy like carbon tax or carbon credit in Thailand to improve competitiveness of Thailand.
Raw material supply and energy cost risk
Raw material sourcing volatility and escalating energy costs threaten supply chain stability and cost efficiency
Mitigation strategies
The company is implementing a strategic initiative to diversify its network of business partnerships, thereby enhancing supply chain resilience and ensuring cost stability. Furthermore, it employs a comprehensive inventory management strategy in parallel with fostering multi-faceted collaboration with government agencies. These measures are designed to fortify procurement security, optimize resource allocation and enable seamless adaptation to dynamic market conditions and external challenges.
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