Iran-Israel conflict not to have much impact on Tata Steel unless it lasts long: Narendran

Tata Steel CEO & Managing Director T V Narendran on Tuesday (June 24) said the overall impact of the Iran-Israel conflict on the company was not much.

He said this on the sidelines of a programme organised by the Singhbhum Chamber of Commerce and Industry (SCCI).

Narendran said 95% of sales of the company take place domestically on Indian currency. Hence, the overall impact on the company would not be much for the time being but if the conflict lasts long, then its impact will be felt globally including Tata Steel.

Narendran welcomed the ceasefire declared between Iran and Israel and expressed hope that this will help reduce the hostilities.

”However, Tata Steel being a global company, we have to be prepared to face such a situation,” he said.

To a query, the Tata Steel CEO said trade and tariff coupled with an increase in duty imposed by US was a challenge for the sector globally.

”Our maximum export takes place to European nations and the US,” he said and expressed apprehension that the company’s customers in those countries would bear the brunt on the cost front.

Besides, the cost of shipping, shipping insurance, and logistics will also go up with the increase in oil prices if the Iran-Israel conflict stretches for long, Narendran said.

The oil prices had surged during the last fortnight and would go up further if the conflict continues, he observed.

”We procure limestone from the Middle East and also export steel there. The logistic cost would certainly increase if the conflict lasts long,” he said.

About the country’s projected 6.5% GDP growth, Narendran said it is good compared to other economies of the world growing at 3%.

”India is the fastest growing economy but we have to maintain it,” added.

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