Construction Industry News
TV Narendran, CEO and General Manager of Tata Steel, announced that rising steel prices and strong demand could lead the company to accelerate its announced capacity expansion target by a few years.
Narendran said that if the company continues with its growth plans, it could meet the target of 40 million tons (MT) of installed capacity in India by 2030.
In India, the company's installed capacity is 20.6 tons. In fiscal year (FY) 2022, the company produced 19.06 MTs.
The company expects to spend Rs 12,000 crore on capital expenditures (CapEx) this fiscal year. However, it will review the situation after six months and adjust it upwards if necessary.
Narendran said they can always go back to the board and ask for more and spend more if markets are robust, cash flows are high and deleveraging is progressing as expected.
The MD informed that unlike before when the group had only one location in Jamshedpur, growth could only take place in phases.
They currently have two locations in Kalinganagar and one in Angul so they have the flexibility to expand faster tomorrow as demand in India picks up and profitability remains strong.
He said that while the company is not currently updating its 2030 schedule, it would continue to do so.
The 40 MT plan includes the expansion of the Kalinganagar plant to a capacity of approximately 16 MT from its current 8 MT expansion, including expansion of the Neelachal Ispat Nigam (NINL) site to 10 MT capacity from its current capacity of 1 MT. The purchase of NINL is likely to be completed in June.
After the acquisition of 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 is earmarked for Kalinganagar's continued growth from 3 million to 8 MT per annum, as well as significant expansions in the company's iron ore mining industry, which it plans to increase from 33 million to 50 MT per annum over the coming years. .
The remaining Rs 3,500 crore will be used for operations in Europe. During the year, the company will also invest Rs 12,000 crore to complete the recent acquisition of NINL.
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