Tata Iron and Steel Company Ltd is to double its branded steel turnover to 40 per cent of the total production within two to three years, from the present 20 per cent, to capture the fragmented market segment in the country.
"A majority of steel users belong to the fragmented segment of the market, and branding would help in building confidence in the quality of the product," Tata Steel chief (marketing, distribution and sales) Ramesh Mani told reporters on the sidelines of a press conference in Mumbai on Tuesday.
The company produces a total of 12 lakh (1.2 million) tonne of steel annually, mainly hot-rolled and cold-rolled steels, of which 30 per cent was in the branded segment.
Branding creates an identity for the product and lends authenticity and credibility to it, he said.
Tata Steel would target northeastern states and general engineering companies to sell it, he added.
At present, Tata Steel has three branded products - Tata Shakti, Tata Tiscon and Tata Agrico - with a total branded tonnage of over Rs 2,000 crore (Rs 20 billion), Mani said.
Meanwhile, Tata Steel launched its first branded cold rolled steel, Tata Steelium, in the western region. The product, being rolled out in two verities - AUO3 and TR-15 - is being manufactured at the steel major's Jamshedpur factory.
"AUO3 is for OEM and other industrial uses, while TR5 could be used for furniture making," Mani said, adding it would contribute to around 50 per cent of the total branded tonnage. Steelium was launched in India on February 27 last.