Tata Steel Limited (BSE:500470) is planning to sell some of its businesses in South-East Asia as part of its strategy to exit non-scalable businesses and turn focus to domestic market, people familiar with the matter said. Tata Steel has appointed a banker in Singapore to scout for buyers for NatSteel Holdings Pte Ltd. and Tata Steel (Thailand) Public Company Limited (SET:TSTH). The steelmaker values the businesses at about $500 million.

Both units are suffering due to lack of demand caused by slump in construction activities and elevated scrap prices in Singapore and Thailand. Tata Steel declined to comment. Under new Chairman Natarajan Chandrasekaran, Tata Group is exiting businesses that don't have potential to either scale up or be immensely profitable.

Tata Steel wants to become a top steelmaker in India and Europe, according to its latest annual report.