07 Jun, 2025
Tata Steel bets big on India growth, says Chairman N Chandrasekaran
India remains the fastest-growing major economy, with growth supported by favourable demographics, ongoing structural reforms, low inflation, and targeted fiscal incentives, Chairman of Tata Steel N Chandrasekaran said in a letter to shareholders.
“A combination of rate cuts, higher capital expenditure, and tax benefits is expected to drive private investment and discretionary consumption,” he said, adding that India is poised to lead global steel consumption by 2026.
Chandra said global steel output in FY2024-25 was stable at 1.83 billion tonnes, but despite this, margins remained under pressure due to supply chain volatility, although coking coal prices were lower. India’s steel sector outperformed global peers, with crude steel output rising 4.7 per cent on a year-on-year basis and steel consumption surging 10.2 per cent year-on-year. The growth was driven by construction, urbanisation, and industrial activity, he said.
In India, the company ran operations at near full capacity utilisation across sites, with highest-ever crude steel production of 21.7 million tonnes and deliveries of 20.9 million tonnes. The company commissioned India’s largest blast furnace (5 MTPA) at Kalinganagar — part of the ₹27,000 crore Phase II expansion — while Neelachal Ispat Nigam Limited (NINL) delivered strong performance with ₹1,000 crore EBITDA and generated positive free cash flow, Chandrasekaran said.
Originally published on Business Standard
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