Tata Steel Plans 48 MT India Capacity Expansion Through Brownfield Projects

Tata Steel has outlined an ambitious expansion roadmap for its India operations, targeting a steel production capacity of 48 million tonnes through brownfield expansion projects across multiple manufacturing locations. The company also expressed confidence that its UK operations could achieve break-even at the operating level during the current financial year, supported by improving steel prices and cost optimisation measures.

Speaking about the company’s long-term strategy, Tata Steel CEO and Managing Director TV Narendran said India continues to remain a structurally strong market for the company. He added that Tata Steel plans to align its capacity additions with the country’s growing steel demand while maintaining and strengthening market share across key segments.

The expansion plans will primarily focus on existing facilities including Kalinganagar, Neelachal, Meramandali, Jamshedpur and Ludhiana. Tata Steel stated that Kalinganagar alone has the potential to increase capacity from 8 million tonnes to 13 million tonnes initially, with future possibilities to expand further to 16 million tonnes after engineering studies and approvals are completed.

The company also plans to develop Electric Arc Furnace based steelmaking facilities in South and West India over the next three to four years. These projects are expected to support cleaner steel production and improve operational flexibility as India’s steel demand continues to rise due to infrastructure growth, manufacturing expansion and urban development.

Tata Steel’s management highlighted that lessons from its European operations are helping the company prepare for future regulatory, environmental and operational challenges in India. The company noted that Europe’s focus on protecting domestic steel industries through mechanisms such as the Carbon Border Adjustment Mechanism has contributed to improved pricing conditions across the region.

Meanwhile, Tata Steel’s UK business is witnessing gradual recovery as steel prices improve and cost reduction measures begin delivering results. The company expects its UK operations to reach a no profit no loss position at the EBITDA level within the next two quarters.

For FY27, Tata Steel has planned a capital expenditure of around ₹20,000 crore, with nearly 65 percent of investments allocated towards India operations and expansion activities.