Money Control reported that the global recovery may be weak and China and europe may be running at over capacity but TATA Group, chairman Mr Cyrus Mistry is not worried. He has written to TATA Steel shareholders saying the company is well poised to battle its way through these tough times, and will continue to build capacity reports CNBC-TV18’s Mr Sajeet Manghat and Ms Kritika Saxena.

Mr Cyrus Mistry is not overly concerned about the global slowdown in steel demand. The chairman of Tata Sons, in his annual letter to TATA Steel shareholders warns that global steel demand growth will fall 3.1% in 2014. However, adds that this will be less than the 3.6% growth seen in 2013.

That's because while there are signs of a macro economic recovery in several major economies, structural weaknesses will continue in the medium term. Mistry also points out that Tata Steel will have to recalibrate itself, if it has to navigate around the over-capacity in China and Europe.

His letter said that "Growth in China, the largest producer of steel globally, has tempered, as the country shifts gears to pursue a 'sustainable' model of economic development. Deviations in the growth trajectory of China will impact global steel demand supply and pricing dynamics."

But this threat from China and Europe is not stopping TATA Steel from investing in building capacity in India. FY14 saw its Jamshedpur facility achieve almost a million tonnes of additional production and sales, and the company is hungry for more. It is aggressively pursuing the completion of the first phase of its 6 MT Kalinganagar facility, and expects phased commissioning to start by the end of Fiscal 2015.