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Tata Steel Managing Director T V Narendran has said that the company will continue to expand capacity in India in line with rising domestic demand for steel, while ruling out any immediate merger or acquisition plans.
Speaking to ANI on the sidelines of the annual conference of the All India Management Association (AIMA), Narendran said India's steel demand is growing strongly, and the company is expanding capacity across its existing facilities. "The ambition is there. Expansions are happening with different companies. Tata Steel is already at 25 million tonnes in India," he said. He added that the next phase of expansion will take place at existing assets, including the company's acquired Bhushan Steel plant and its Neelachal operations. "We've said that the next phase of expansion is going to be in Neelachal and in the Bhushan Steel plant, which we had acquired. And we just started the plant in Ludhiana. So we've just added a million tonnes, and we have plans to add another six to seven million tonnes," Narendran said. He noted that strong domestic demand is driving expansion across the sector. "The demand for steel in India is growing at about 8 to 10 per cent a year, which is strong for us. As long as the government continues to focus on infrastructure, that's positive for the industry," he said. On possible mergers or acquisitions, Narendran said the company is currently focused on expanding its existing footprint. "Nothing just now. We have growth plans based on the existing assets and sites that we have. So we are quite happy with the footprint that we have today," he said. Narendran also stressed the importance of introducing carbon pricing in India to help domestic steel producers compete in global markets, particularly in Europe, where stricter climate regulations are being implemented. "I think it's important to have some sort of carbon pricing in India because that also helps us take carbon credits when you sell into Europe," he said, referring to the Carbon Border Adjustment Mechanism (CBAM). "If you are paying a carbon tax in India, then you can take credit for that. It also encourages industry to shift to greener process routes," he added. Narendran further said global geopolitical tensions are increasing input costs for the steel industry, particularly fuel, freight and insurance. "It is having an impact on costs because for the steel industry, fuel costs are an important cost," he said. "A lot of us bring limestone from the Middle East, so we have to look for alternate sources. Freight costs have gone up across the world. Insurance costs have gone up," he said. According to Narendran, these pressures are contributing to the rise in steel prices. "So there are a lot of input cost pressures, which is also reflecting in the rise in steel prices," he added. (ANI)
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