ArcelorMittal may set up R&D unit in Kolkata

Source: The Economic Times, 21.01.2008

JAMSHEDPUR/KOLKATA: ArcelorMittal, the world’s largest steel company, is drawing up plans to set up a state-of-the-art R&D facility in Kolkata. The initiative, tightly under wraps at present, is being blueprinted. If it takes shape, it will not only give the steel company an address in Kolkata, but will also serve as a likely precursor to a more ambitious plan that the company has lined up to enter the rapidly-growing, lucrative business of engineering consultancy.

The company seems to have already appointed nearly 300 engineers to power its high-tech R&D hub. The new centre will take up consultancy jobs and cater to needs of ArcelorMittal plants in 27 countries around the world. In this job, it was assisted by Delhi-based Oman Consultants.

To house the R&D centre, the company is already believed to have taken up some 25,000 square feet of office space in Kolkata’s eastern fringes at New Town, Rajarhat, which is being developed as a Knowledge City. When contacted ArcelorMittal India CEO Sanak Misra declined to comment on the proposed R&D centre.

“I have no idea about it,” he told ET. R&D is obviously an important area for the company. Earlier, speaking on sideline of Jharkhand Enterprise 2007, group management board member and head for Asia, Africa, mining and CIS at ArcelorMittal Malay Mukherjee had said the company would like to collaborate in R&D with other steel plants in India, particularly with Steel Authority of India (SAIL).

A source confirmed: “The company has recruited some 300 people for the new R&D centre. There is a huge gap in the market between supply and demand for such consultancy jobs in India where new greenfield plants and huge capacity additions are taking place. Given our strong skillsets in the area, we hope to step into the arena and cater to the requirement of plants both here in India and elsewhere in the world.”

Domestic steel-making capacity is set to grow from 50 million tonnes in 2007-08 to 80 mt by 2010-11. By 2015, this may go up to 120 mt. Given this perspective, the field of a new plant design and technology has literally exploded. Currently, two big names largely dominate the field of engineering consultants — public sector Mecon and MN Dastur. ArcelorMittal has enormous domain knowledge and IP in the area of design consultancy.