Tata Steel CEO Narendran recently stated that the company is planning to invest Rs. 8,500 crores and Rs. 3,500 crores on the company’s operations in India and Europe respectively.
Tata Steel is an Indian multinational steel making company of the Tata Group. The company has decided to invest Rs. 12,000 crores in their operations pertaining to the regions of India and Europe. The capital expenditure (capex) would be divided as Rs. 8,500 crores for India and Rs. 3,500 for Europe. The CEO T V Narendran revealed the company’s plans for financial year of 2024 to the PTI in an interview recently.
“This allows us to run Tata Steel as one integrated company with five major sites, three in India and two in Europe. This brings greater focus on each of our operating sites. The European sites have been tasked with becoming self-sufficient,” T V Narendran.
Tata Steel’s plans for Indian operations
The industry player has setup plans to focus on it’s Kalinganagar project expansion and mining activity in India. The company is working on expanding its Kalinganagar (Odisha) plant’s capacity from 3 metric tons to 8 metric tons.
In addition to this investment, the company will also be spending Rs. 12,100 crores on inorganic growth as part of the NINL acquisition. Tata Steel had completed the acquisition of Odisha-based one Million Tonne Per Annum (MTPA) steel mill NINL in May. This was done through the company’s entirely- owned subsidiary, the Tata Steel Long Products Limited (TSLP).
Tata Steel had planned to acquire state owned Rashtriya Ispat Nigam Limited but the lack of a large site to produce long products cancelled the deal. The Neelachal Ispat Nigam Limited (NINL) acquisition covered that gap for the company. In fact, this acquisition will also help in increasing the production capacity of the Odisha plant by 5 metric tons.
Tata Steel’s plans for European operations
For its European operations, the steel producer plans to focus on sustained growth, product mix enrichment and environment related capital expenditures. T V Narendran stated that the European business operations will be split into the Dutch Business and the British Business.
The Russia- Ukraine war had caused a disruption for the company in the first half of the financial year of 2022. Along with that, the widespread Covid- 19 pandemic also affected their production. However, the CEO Narendran is hopeful for the second half of the fiscal year as the company sets up plans to expand its business.
“I expect the second half of the financial year to be more positive than the first half as I expect the demand growth for steel in India to be strong based on the continued focus on infrastructure spend.” – T V Narendran.
The bright future of Tata Steel in the steel making industry
Tata Steel was founded on 25 August, 1907 in Jamshedpur. It has grown to become one of the largest steel producers in the country with a net worth of US$38 Billion. Narendran told the Press Trust of India (PTI) in an interview that the steel producing company produces around 20 million tons of steel in India.
Being one of the largest private steel production company, and with plans to keep investing in and expanding its business, Tata Steel for sure has a bright future in the industry.
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