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Tata Steel eyes 30 mt capacity in India by 2025

Business Finance

IANS  |  Kolkata 

Tata Steel is targeting a capacity of around 30 million tonne in India by 2025 from its present capacity of 18.5 million tonnes, an official said on Monday.

Tata Steel India has manufacturing units at Jamshedpur in Jharkhand with a production capacity of 10 million tonnes per annum and at Kalinganagar in Odisha with a production capacity of 3 mtpa.

The steel producer's wholly owned subsidiary Bamnipal Steel Ltd had taken over Bhushan Steel Ltd (BSL) with a capacity of around 5.5 mtpa under corporate insolvency resolution process (CIRP).

The company is in the process of expanding its capacity of Kalinganar plant by another 5 mt per annum with an estimated investment of Rs 23,500 crore.

"We are now at 18.5 million tonne. With expansions and new capacities, we expect to reach 30 million tonne capacity by 2025 in India," company's President (TQM and Steel business) Anand Sen said.

The company executed definitive agreements for acquisition of the steel business of debt-ridden Usha Martin for a cash consideration between Rs 4,300-4,700 crore.

However, these projections are based on current expansions on the existing plants and the projects including taken-over assets.

Taking into European operations of the company, the steel major has the total capacity of 27.5 mtpa.

About the newly acquired Bhushan Steel, Sen said the company was evaluating the amount of capital expenditure required for the asset.

"The capex would be in the range of Rs 500-1,000 crore to achieve the rated capacity," he said.

The steel maker has decided that it would go for "unified branding' for products coming from the taken-over assets only after they are upgraded and matched with its quality, he added.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, November 05 2018. 23:20 IST