Tata Steel Foresees Good Years Ahead for Steel Industry

SEATTLE (Scrap Monster): Tata Steel expressed hope that the steel industry in India is set to have few good years ahead. The capacity additions have remained strong amidst high steel prices. Overall, Tata Steel is in a much better place as a company, which it expects to get reflected in numbers as well.

According to T.V. Narendran, CEO and MD, Tata Steel, the company recorded strong performance in both Europe and India during FY22. Looking ahead, the increased focus on infrastructure spending by governments across the globe will further boost steel demand. There is a lot of investment happening in Europe and elsewhere, especially in defence sector, Narendran said.

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Tata Steel intends to double its capacity over the next ten-year period. It plans to keep aside money for growth, as it finds growth in India very value accretive. By investing in growth in India, it targets to create long-term value to its shareholders.

The company is set to complete acquisition of assets of Neelachal Ispat Nigam Limited (NINL) by first quarter FY23. Also, it plans to scale up NINL in order to drive expansion of its high-value retail business. It must be noted that Tata Steel was declared the winner of the bid for obtaining 93.71% stake in NINL for a sum of over INR 12,000 crore.