According to its top management, industry heavyweight Tata Steel expects to spend a combined Rs 16,000 crore on capital projects for its domestic and international operations during the current fiscal year. According to the company’s CEO & MD T V Narendran and Executive Director & CFO Koushik Chatterjee, Tata Steel has allocated Rs 10,000 crore for standalone operations and Rs 2,000 crore for its Indian subsidiaries out of the projected amount.
In the company’s annual report for 2022–23, the executives stated, “The projected capital expenditure (capex) for FY2023–24 is set at Rs 16,000 crore on a consolidated basis and is intended to be financed through internal accruals over the full year.”According to them, the Kalinganagar project will make up almost 70% of the Rs 10,000 crore set aside for Tata Steel Standalone operations.
The company is now working to increase the capacity of its factory in Kalinganagar, Odisha, from 3 MT to 8 MT.”Our other Indian subsidiaries, currently in an expansion phase with value accretive projects, especially in downstream operations which are important to service customer needs and improve our value-added product mix, will have a capex of about Rs 2,000 crore,” company officials said.
Tata Steel Nederland would spend Rs 1,100 crore on capital expenditures in Europe for the blast furnace relining that is currently being done. According to the leaders, the majority of the remaining capital expenditures are designated for and will be used for maintenance, improvement, and environmental activities.
The discussions are ongoing and at the same time, some of the existing heavy-end assets in Tata Steel UK will reach the end of life over the following few years. The management of Tata Steel UK will evaluate all scenarios with regard to the future configuration of the business and will consult appropriately with various stakeholders prior to relevant strategic decisions being taken. ”Any decision-making will also take into account our market, customers, supply chain impacts, and safe operating practices for our employees,” the officials said.
While the conversations are underway, some of Tata Steel UK’s current heavy-end assets will soon reach the end of their useful lives. Prior to making pertinent strategic choices, the management of Tata Steel UK will carefully consider all possible outcomes with regard to how the company will be structured in the future. According to the executives, “Any decision-making will also take into account our market, customers, impacts on the supply chain, and safe operating procedures for our employees.”
