Tata Steel has signed an agreement to acquire 50.01% of pellet producer Thriveni Pellets

The controlling stake is valued at $69.34 million, strengthening access to raw materials and market position for rolled products

One of India’s leading steel producers, Tata Steel, has announced the signing of a definitive agreement to acquire a 50.01% stake in local pellet producer Thriveni Pellets Private Limited (TPPL), valued at ₹636 crore, or approximately $69.34 million. This is evidenced by the company’s regulatory filings.

The deal gives Tata Steel control over a key iron ore pellet producer in the country and strengthens its vertical integration in the Indian steel business. The remaining 49.99% of TPPL is owned by Lloyds Metals & Energy Ltd.

TPPL owns 100% of Brahmani River Pellets Limited (BRPL), which operates a 4 million tonne per annum pellet plant in Jajpur, Odisha. In addition to its production facilities, BRPL controls a 212-kilometer pipeline that transports iron ore concentrate. This makes the asset strategically important for optimizing Tata Steel’s logistics and stability of raw material supplies.

The company emphasizes that the acquisition is consistent with its long-term strategy to invest in the development of its resource base and ensure the growth of its Indian business. In line with the decisions of the board of directors, Tata Steel plans to strengthen its control over mining assets, expand finished steel production, and invest in infrastructure that will enable it to more efficiently supply its growing steelmaking capacity. In this context, TPPL and BRPL will play an important role in establishing a sustainable supply of billets for future projects and existing plants.

The agreement is subject to regulatory approval. At the same time, Tata Steel continues to develop other strategic areas, from expanding the capacity of Neelachal Ispat Nigam Limited to investing in low-carbon steel production technologies, including a demonstration plant based on HIsarna technology. The company emphasizes that strengthening its resource base, including TPPL’s assets, is a key element of its strategy for profitable growth in the Indian market.

As a reminder, Tata Steel intends to transform the plant in Kalinganagar (Odisha state) into its largest production site with a steel production capacity of over 16 million tons per year. The company has currently invested 50 billion rupees in the enterprise. This has been the largest organic capacity expansion in the steel manufacturer’s history (from 3 to 8 million tons). Its highlight was the commissioning of India’s largest blast furnace.