Tata Steel, India's largest private sector steel maker, Thursday said its profit in the fiscal year ended March 31 rose a whopping 99 percent over the previous year on increased consumption.

The company, an arm of India's diversified business conglomerate Tata Group, said its profit in the fiscal 2004-05 touched Rs.34.74 billion as compared to Rs.17.46 billion logged in the previous year.

Tata Steel's sales in the last fiscal posted a growth of 33 percent at Rs.158.77 billion. The company reported export revenues of Rs.20.43 billion, a 37 percent rise over the previous year.

The board of Tata Steel has recommended a dividend of 130 percent for the fiscal year 2004-05.

Steel consumption in India has grown at a steady rate of five-six percent over the last decade to a level of about 33.4 million tonnes in the fiscal year 2004-05.

The consumption is expected to increase by about three to four million tonnes per annum for the next few years, exceeding 45 million tonnes by 2010.

Tata Steel has increased its capacity at the Jamshedpur Steel Works from four million tonnes a year to five million tonnes. The company plans to become a 15 million tonnes per annum steel company by 2010.

"This is planned by maximising the potential of Jamshedpur Steel Works, setting up green-field capacity, expansion of regional footprint through NatSteel Asia and further investment in India and overseas," said a company statement.

In addition to the expansion, the company had also signed a memorandum of understanding Nov 17, 2004, with the Orissa government for setting up a six million tonne green-field integrated steel plant.

The company took the first significant step to build a global business by investing in the steel business of NatSteel in the last fiscal.

Tata Steel signed a pact with NatSteel, Singapore, Aug 16, 2004 to acquire 100 percent of its steel business in Singapore and its regional steel subsidiaries and associated companies for Rs.13.13 billion.

Tata Steel now owns 100 percent of NatSteel Asia with a cumulative capacity of 1.7 million tonnes per annum.