Tata Steel, one of the leading global steel companies, has set ambitious goals to expand its capacity in India and pursue organic growth opportunities. The CEO and Managing Director, T V Narendran, stated that the company sees enough potential within its existing facilities to achieve a capacity of 40 million tonnes by 2030, almost double its current capability in the country.
Narendran highlighted ongoing expansion projects in various locations, with a particular emphasis on the completion of the 5 million tonnes per annum (MTPA) Kalinganagar expansion in Odisha. The company is in the process of increasing the plant capacity in Kalinganagar from 3 MTPA to 8 MTPA. Additionally, Tata Steel successfully ramped up Neelachal Ispat Nigam Ltd, a one million tonne per annum steel mill acquired in 2022, to full production capacity within nine months.
To support its growth plans in India, Tata Steel has allocated a capital expenditure of Rs 12,000 crore. Narendran confirmed that the company’s expansion strategy would primarily focus on organic growth and ruled out any immediate plans for inorganic growth through acquisitions.
Regarding Tata Steel’s operations in the United Kingdom, Narendran mentioned that discussions with the UK government for a financial package are ongoing. The company had sought a package of 1.5 billion pounds to implement decarbonisation plans at its Port Talbot facility in South Wales. These plans involve replacing two blast furnaces with low-emission technologies to reduce the carbon footprint. The outcome of the dialogue and the level of financial support from the UK government will determine the future course of action for Tata Steel’s projects in the UK.
Tata Steel, with a consolidated turnover of USD 30.3 billion in the previous financial year, is committed to decarbonisation and will calibrate its approach based on local regulations, government support, and customer willingness to pay for environmentally friendly steel.
With its extensive presence across five continents and a workforce of over 65,000 employees, Tata Steel is poised to pursue its growth aspirations while simultaneously addressing sustainability and environmental concerns.