Expansion in India, tighter cost control and a greener future dominated Tata Steel's 119th Annual General Meeting (AGM), where the company laid out its strategic priorities for the coming years.
The steelmaker, in its investor presentation, also highlighted a sharp improvement in its financial performance during FY26, while reiterating its commitment to disciplined capital allocation and operational excellence.
India Capacity Expansion
Tata Steel says that India continues to be the company's primary growth engine. Tata Steel said it plans to expand its crude steel capacity from around 27.4 million tonnes per annum (MTPA) to more than 40 MTPA over the coming years.
The expansion pipeline includes a 4.8 MTPA expansion at Neelachal Ispat Nigam Ltd. (NINL), 2.5 MTPA of finished steel capacity at Tata Steel Meramandali, and a 6 MTPA greenfield project in Maharashtra.
Alongside upstream capacity, the company is investing in downstream businesses, targeting significant increases in tubes, wires and tinplate capacity while commissioning a new hot rolled pickling and galvanising line.
A major focus remains the Phase-II expansion at Kalinganagar, with the management highlighting plans to optimise the 2.2 MTPA Cold Rolling Mill Complex, aimed at improving operational efficiency and enhancing value-added steel production.
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Cost Savings To Drive Profitability
Tata Steel said its FY26 cost transformation programme delivered savings of approximately Rs 10,868 crore, achieving around 95% of its targeted Rs 11,500 crore savings.
The company has now set a fresh target of generating Rs 7,140 crore in cost improvements during FY27 through better raw material efficiency, supply chain optimisation, lower power and fuel costs, improved maintenance practices and operational efficiencies across geographies.
The company also showcased an improved financial performance for FY26. Consolidated deliveries increased to 31.97 million tonnes from 30.96 million tonnes in FY25, while revenue rose to Rs 2.32 lakh crore. Over the past five years, Tata Steel has returned around Rs 23,000 crore to shareholders through dividends.
Sustainability Strategy
The company reaffirmed its commitment to achieving net-zero carbon emissions by 2045, positioning sustainability as one of the key pillars of its long-term strategy.
Management highlighted multiple decarbonisation initiatives underway in India while noting that its UK transition programme is expected to reduce nearly 50 million tonnes of CO₂ emissions over the next decade. Tata Steel has also invested more than €300 million in sustainability-linked projects and continues to focus on circular economy initiatives, biodiversity, water conservation and responsible supply chains.
The company also noted that it has developed over 550 new products in the last five years, consistently files more than 100 patents annually, and has been recognised as a worldsteel Sustainability Champion for the ninth consecutive year.
AI Becomes Bigger Growth Driver
The company said it is increasingly deploying AI across manufacturing operations to improve fuel efficiency, enhance productivity and strengthen workplace safety. It is also rolling out organisation-wide generative AI training programmes to build future-ready capabilities.
Meanwhile, Tata Steel's digital platforms crossed $1 billion in sales during FY26, reflecting growing adoption of its online customer ecosystem for both retail and MSME buyers.
Beyond growth and profitability, Tata Steel reiterated its focus on employee welfare, safety and community development. The company highlighted AI-enabled safety monitoring, wellness initiatives and continued investment in local communities, including education, healthcare and climate-resilient livelihoods.
from NDTV News- Special https://ift.tt/4DzCXTY
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