Tata Steel has increased its capital expenditure plan for FY2023/2024

Indian steelmaker Tata Steel has increased its forecast capital spending to 16,000 crore rupees ($1.95 billion) for the 2023/2024 financial year. Kallanish reports about it.

The projected capex is expected to be financed through internal accruals throughout the stated period, with ₹10,000 crore (over $1.2 billion) earmarked for Tata Steel’s stand-alone operations. About 70% of this amount will go to the project to expand the production capacity of the plant in Kalinangar (Odisha state).

Tata Steel noted that the other Indian subsidiaries, which are currently in the expansion phase with value-added projects, particularly in the refining operations, will have capital expenditure of around ₹2,000 crore. In Europe, Tata Steel Netherlands will invest ₹1,100 crore in the ongoing blast furnace lining replacement at its Eimeiden plant. The company will spend the rest of the money on life support, environmental initiatives and improvement projects.

As GMK Center reported earlier, in 2022-2023 financial year, Tata Steel increased the production of steel by 4.3% y/y compared to the previous fiscal year – up to 19.9 million tons. This was achieved due to the elimination of bottlenecks at enterprises and the expansion of the capacity of Neelachal Ispat Nigam Limited in Kalinangar. Steel sales for the year increased by 3.3% y/y – up to 18.9 million tons. Despite the unstable operational situation during the financial year, the company increased total shipments of products, in particular, to the domestic market – by 10% y/y.

Also, Tata Steel sees enough opportunities to realize expansion plans and increase steel production at enterprises in India to 40 million tons per year by 2030, said T.V. Narendran, CEO of an Indian steel company.