Tata Steel Moves to Acquire Majority Stake in Thriveni Pellets to Strengthen Raw Material Security

Tata Steel is preparing to acquire a 50.01 percent stake in Odisha based Thriveni Pellets, marking an important step in the company’s long term raw material security strategy. The proposed acquisition, confirmed by people familiar with the development, is expected to strengthen the integrated steel producer’s control over its pellet supply, which plays a critical role in steel production.

Thriveni Pellets operates a four million tonne pellet plant in Jajpur through its wholly owned subsidiary Brahmani River Pellets. The company’s location is strategically important, as it sits close to Tata Steel’s Kalinganagar steelmaking facility and Neelachal Ispat Nigam, which Tata Steel acquired earlier. This proximity creates strong operational synergies and helps optimise logistics and production cycles.

In addition to the pellet plant, Brahmani River Pellets runs a 4.7 million tonne iron ore upgrading plant in Barbil. Both plants are connected through a slurry pipeline, providing a smooth and cost efficient transfer of material. This integrated system enhances the efficiency of iron ore processing and aligns with Tata Steel’s objective of securing high quality raw material sources for its expanding operations.

Once the deal is completed, Thriveni Pellets will transition into a joint venture between Tata Steel and Lloyds Metals and Energy, which recently acquired a 49.99 percent stake in the company. This partnership brings together two major industry players whose operational strengths are expected to support the long term growth of the pellet and beneficiation business.

Brahmani River Pellets is considered one of India’s largest merchant pellet producers and has shown strong financial performance. The company reported a profit of ₹38.67 crore in FY24 on revenue of ₹2,473.91 crore. Commercial production began only in 2023, and the business has benefited from its presence in Odisha, a state that contributes more than half of India’s iron ore output.

For Tata Steel, this acquisition attempt is not new. The company had earlier signed a definitive agreement in 2016 to acquire Brahmani River Pellets entirely, but the deal was later cancelled due to unmet conditions. The revived interest now signals Tata Steel’s renewed focus on integrating raw material operations with its growing steelmaking capacities.