Tata Steel will hive off its new material business (NMB) into a separate subsidiary, with a plan to foray into manufacturing railway coaches, medical material devices and graphene applications, Debashish Bhattacharjee, vice president, technology and NMB, Tata Steel, said.
While the railway coach making would involve composite material, the medical material devices would involve advance ceramics, which the NMB has developed, he said.
The objective of the new material business is to contain CO2 emissions. EVs, aviation and transport — particularly metro rail and hyperloop — have become the key drivers of the business.
The company has formed a JV with Dutch firm TABB Interior Systems to set up a 100% export-oriented composite material railway coach plant near Pune with the NMB division, targeting Rs 700-800 crore business from its first phase of investment by 2026. “By 2030 when the second phase of investment completes, our NMB revenues will run into several thousand crores,” Bhattacharjee said.
The NMB division envisions to partially insulate the vulnerability of revenues from the cyclicality of the steel business while responding to the growing demands for alternative materials.
NMB, operating in three verticals, will include construction, electrical and electronics, oil and gas, aviation, automotive, healthcare and medical devices sectors. The approach to growth would be both organic and inorganic and Tata Steel is open to merger and acquisitions, JVs and tie-ups with startups and academic institutions for development of the business, Bhattacharjee said.