Tata Steel is on track to achieve its target of attaining 40 million tonne per annum (MTPA) of production capacity by 2030 in India, even as it secured full insurance cover for its pension liabilities in the UK.
The steel behemoth’s present capacity in India stands at about 21.6 MTPA and the company expects benefits of Rs 2,000 crore from the merger of its subsidiaries with itself.
“On the growth front, the company continues to scale up its business in India by way of both organic capital expansion and inorganic acquisitions and is steadfast in its objective of achieving its 2030 target of an overall 40 MTPA capacity,” Tata Steel Chairman N Chandrasekaran told shareholders at the company’s AGM held virtually today.
Tata Steel is ramping up capacity at Neelachal Ispat Nigam (NINL) as it intends to attain a leadership position in the long products segment. Further, it would increase capacity at the Kalinganagar plant by 5 MTPA to 8 MTPA.
Tata Steel had signed an agreement with the Punjab government for setting up a 750,000 tonne a year electric arc furnace (EAF). “The plant is expected to be operational within two years.”
On Tata Steel’s plans to amalgamate its seven subsidiaries and one associate company, Chandrasekaran said plans were at different stages of regulatory approval and the company will strive to complete it in this fiscal itself. Following the amalgamation, it expects benefits of Rs 2,000 crore, he added.
The company had earlier received board approvals to merge Angul Energy, Tata Steel Long Products, The Tinplate Company of India, Tata Metaliks, TRF, Indian Steel & Wire Products, Tata Steel Mining and S&T Mining Company with itself.
“The future holds many opportunities for Tata Steel and the company is well-positioned to capitalise on them,” he said, adding Tata Steel Nederland and Tata Steel UK will also expand steel deliveries, improving yield performance and reducing operating costs.
“The R&D spend between India and Europe stands at Rs 1,000 crore,” he added.
On the company’s British Steel Pension Scheme, he said Tata Steel had secured full insurance cover for the pension liabilities at no cash cost to the company and eliminating any future risks from asset-liability mismatches. “This means that the cash flows for future pension payouts to pensioners are guaranteed by the insurer,” he added.
Tata Steel CEO TV Narendrantold shareholders at the AGM that NINL has achieved full operational capacity.