TV Narendran: Tata Steel may increase CapEx to achieve 40 MT target
Steel

TV Narendran: Tata Steel may increase CapEx to achieve 40 MT target

TV Narendran, Tata Steel's CEO and Managing Director, announced that the rising steel pricing and strong demand might lead the company to accelerate its declared capacity expansion objective by a few years.

Narendran said that if the company moves on with its growth plans, it would be able to meet its 40 million tonnes (MT) installed capacity target in India by 2030.

In India, the company's installed capacity is 20.6 MTs. In fiscal year (FY) 2022, the company produced 19.06 MTs.

The company expects to spend Rs 12,000 crore on capital expenditure (CapEx) this FY. It will, however, review the situation after six months and, if necessary, amend it upwards.

Narendran said that they can always go back to the board and ask for more and spend more if the markets are robust, the cash flows are high, and the deleveraging is proceeding as expected.

The MD informed that unlike before when the group just had one location in Jamshedpur, growth could only happen in stages.

Currently, they have two locations in Kalinganagar and one in Angul, so they have the flexibility to expand faster tomorrow if demand in India goes up and profitability remains strong.

He said that, while the corporation is not currently updating the 2030 schedule, it would continue to do so.

The 40 MT plan comprises extending the Kalinganagar plant to around 16 MT capacity from the current 8 MT expansion, including expanding the Neelachal Ispat Nigam (NINL) site to 10 MT capacity from its current 1 MT capacity. The purchase of NINL is likely to be completed by June.

After acquiring Bhushan Steel, the company's capacity was increased from 3 million to 5 MT per year, with the potential to grow to 10 MT.

Currently, Rs 8,500 crore has been set aside for the ongoing growth of Kalinganagar from 3 million to 8 MT per annum, as well as significant expansions in the company's iron ore mining, which it plans to increase from 33 million to 50 MT per annum over the next few years.

The remaining Rs 3,500 crore will be used for operations in Europe. During the year, the business will also invest Rs 12,000 crore to complete the recent acquisition of NINL.

Image Source

Also read: Tata Steel to break ties from its business with Russia

TV Narendran, Tata Steel's CEO and Managing Director, announced that the rising steel pricing and strong demand might lead the company to accelerate its declared capacity expansion objective by a few years. Narendran said that if the company moves on with its growth plans, it would be able to meet its 40 million tonnes (MT) installed capacity target in India by 2030. In India, the company's installed capacity is 20.6 MTs. In fiscal year (FY) 2022, the company produced 19.06 MTs. The company expects to spend Rs 12,000 crore on capital expenditure (CapEx) this FY. It will, however, review the situation after six months and, if necessary, amend it upwards. Narendran said that they can always go back to the board and ask for more and spend more if the markets are robust, the cash flows are high, and the deleveraging is proceeding as expected. The MD informed that unlike before when the group just had one location in Jamshedpur, growth could only happen in stages. Currently, they have two locations in Kalinganagar and one in Angul, so they have the flexibility to expand faster tomorrow if demand in India goes up and profitability remains strong. He said that, while the corporation is not currently updating the 2030 schedule, it would continue to do so. The 40 MT plan comprises extending the Kalinganagar plant to around 16 MT capacity from the current 8 MT expansion, including expanding the Neelachal Ispat Nigam (NINL) site to 10 MT capacity from its current 1 MT capacity. The purchase of NINL is likely to be completed by June. After acquiring Bhushan Steel, the company's capacity was increased from 3 million to 5 MT per year, with the potential to grow to 10 MT. Currently, Rs 8,500 crore has been set aside for the ongoing growth of Kalinganagar from 3 million to 8 MT per annum, as well as significant expansions in the company's iron ore mining, which it plans to increase from 33 million to 50 MT per annum over the next few years. The remaining Rs 3,500 crore will be used for operations in Europe. During the year, the business will also invest Rs 12,000 crore to complete the recent acquisition of NINL. Image Source Also read: Tata Steel to break ties from its business with Russia

Next Story
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?