Tata Steel Will Not Pursue Fresh Acquisitions This Decade

SEATTLE (Scrap Monster): Leading Indian steelmaker targets to more than double its output, by focusing on organic growth opportunities at its existing steelmaking sites. The steel giant is unlikely to look at fresh acquisitions during this decade, said T.V. Narendran, CEO and Managing Director, Tata Steel.

According to him, most of the company’s growth during the past few years has been through inorganic routes, mainly through acquisitions. The major acquisitions include that of Bhushan Steel in 2018, Usha Martin in 2019 and the most recently announced acquisition of assets of Neelachal Ispat Nigam Limited (NINL).

As of now, the company is in a position where all of its growth ambitions could be met through organic growth in our existing facilities. Tata Steel plans to ramp up the output at NINL from 1 MTPA to 10 MTPA, while the flagship Kalinganagar plant will see a phased expansion from current levels of 3MTPA to nearly 16 MTPA.

Thus the company finds no need of acquisition of new assets to boost its output from current levels of 20 million tons per annum (MTPA) to the projected levels of 40-50 MTPA, Narendran noted. It must be noted that Tata Steel had reported total annual production of 19.06 million tonnes during the previous fiscal year.

Furthermore, the company ruled out the possibility of steel price hike in the near future.

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