Tata Steel Plans Capex Of Rs.17,000 Cr for FY25

Tata Steel Limited is an Indian multinational steel-making company, based in Jamshedpur, Jharkhand, and headquartered in Mumbai, Maharashtra. It is a part of the Tata Group.

Formerly known as Tata Iron and Steel Company Limited (TISCO), Tata Steel is among the largest steel-producing companies in the world. The company has planned a Capex of Rs.17,000 crores for FY25.

Tata Steel Plans Rs.17,000 Capex

Tata Steel Limited has announced plans for a significant capital expenditure of Rs 17,000 crore for the fiscal year 2025, with a substantial portion earmarked for projects within India, notably the ongoing expansion at Kalinganagar. CEO & MD T V Narendran has expressed his optimism for the upcoming fiscal year, anticipating it to surpass the performance of FY24. With numerous projects progressing as scheduled, Tata Steel is all set for growth and continued success in the market.

CEO T V Narendran on this Capex

CEO & MD of Tata Steel Limited has said that, out of the planned Rs 17,000 crore capital expenditure, approximately 75% will be allocated to India, primarily for advancing the Kalinganagar project, alongside initiatives such as blast furnace realignment and expanding the raw materials division. Additionally, funds will be directed toward the electric arc furnace (EAF) project in Ludhiana, Punjab with the remaining balance designated for European operations of the company. Out of the total, over Rs 12,000 crore will be invested domestically.

Previous Year Capex 

In FY24, Tata Steel initially aimed for a capex of Rs 16,000 crore but it ended up spending Rs 18,207 crore in FY24, with around Rs 10,000 crore of it allocated for Indian projects and the rest was directed towards the European operations of the company. Specifically, the fourth quarter saw a capex spend of Rs 4,850 crore. The phased commissioning of the 5 MTPA expansion at Kalinganagar is steadily advancing, 

Conclusion: Tata Steel’s significant capital expenditure guidance has highlighted its plans for both domestic expansion and global competitiveness. With a significant portion of the investment earmarked for Indian operations, particularly the ongoing Kalinganagar project, the company demonstrates its commitment to enhancing its local manufacturing capabilities. The successful execution of these initiatives is placing Tata Steel for sustained growth.

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