NEW DELHI: Tata Steel is looking to spend around Rs 20,000 crore as capex in the current financial year and a major share of it will be spent to support the India business, the company's management said.
The capex for the ongoing FY27 will be around 38 per cent higher from Rs 14,559 crore that Tata Steel has spent on capital expenditure in the preceding 2025-26 financial year.
"In FY26, we spent Rs 14,559 crore on capital expenditure, and we plan to increase this to approximately Rs 20,000 crore in FY 2026-27, with 60 per cent allocated to India," said Tata Steel's CEO & MD T V Narendran, and Koushik Chatterjee, the company's Executive Director & Chief Financial Officer.
The management made the statement in reply to a question related to Tata Steel's capex plans and long-term growth strategy.
They said the capital allocation strategy for FY27 focuses on a balanced mix of sustenance projects, ongoing investments in value-added downstream and infrastructure projects, new technologies, and long-term growth projects, with a clear emphasis on India.
"This includes expansions in tinplate and wires, the HRPGL (Hot Rolled Pickling & Galvanising Line) facility at Tarapur, and the Coke Ovens project at Jamshedpur. In addition, we are continuing to invest in mining, a stronger supply chain and sustainability of operations," the company officials said.
Tata Steel has a consolidated steelmaking capacity of over 36 million tonnes per annum (MTPA) -- excluding the UK's 3.2 MT under transition -- in India (27.35 MT), the Netherlands (7 MT), and Thailand (1.7 MT) to cover South East Asian markets.
The company aims to increase its capacity to over 50 million tonne in the long-term. The increase will be mainly in India, where the company is working on plans to add over 12 MT.
In India, the company owns and operates an 11 MTPA steel plants at Jamshedpur, and 1 MTPA at Gamharia in Jharkhand.
In Odisha's Kalinganagar, the company has 9 MTPA production capacity, that includes Neelancha Ipsat Nigam Ltd (NINL), which it had acquired through insolvency route. Tata Steel also operates a 5.6 MTPA plan in Odisha's Meramandali.
With the expansion of capacities and transition to low-emitting steel making routes, the company aims to have 40 MTPA steelmaking capacity in India from present 27.35 MTPA, which includes recently commission 0.75 MT electric arc furnace in Punjab.
The company is pursuing 4.8 MTPA Phase-I expansion at NINL enhancing its presence in long-products segment and capitalising on growth in infrastructure and retail steel. It has also formed a strategic partnership with Lloyds Metals & Energy Ltd to develop the emerging Gadchiroli iron ore hub and evaluate a phased greenfield steel capacity of 6 MTPA.