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Tata Steel's focus is now on converting primary steel into higher-value products such as precision tubes, speciality steel wires, coated sheets and tinplates View More
Tata Steel executives emphasize value-added products over mere production capacity. Changing market dynamics necessitate a focus on downstream opportunities for greater value. Expensive iron ore impacts cost structures, shifting strategic priorities for steel companies. Export markets are becoming more challenging due to protectionist policies and competition. The company is phasing growth and investing in value-added segments to capture market premiums. View More
Value for a steel producer may not necessarily be derived by its production capacity, according to Tata Steel chief executive TV Narendran and chief financial officer Koushik Chatterjee. Changing market dynamics are making it crucial for companies to look for value across the chain, making value-added products a "must-have" rather than a "good-to-have", they tell Nikita Periwal. Edited excerpts: A certain section of industry is looking at adding capacities while another wants to focus on value. What is Tata Steel's stance? TV Narendran: We want to have options and exercise them properly. Unlike earlier when land was a challenge, today we have the option to go to 50 million tonnes with our existing sites. If we include Maharashtra, where we are speaking to the government for 3,000 acres of land, we can build another 15 million tonnes. So, we have the option to go to 65 million tonnes, but do we want to build all that in a hurry? We will wait and see because the cost structure of the industry is changing very rapidly. Also Read: Tata Steel's T V Narendran says India's energy, critical minerals diversification pose new challenges How does cost impact these decisions? Narendran: The biggest advantage that the industry had is that iron ore was available in plenty and at a reasonable price. Today, it is expensive, so value is lost even before the ore is converted. So, we need to really look at where the value-creation opportunity is in the value chain. At one end, it is commoditised where we are always under the threat of China, and at the other end is more value-added and downstream. In some sense, you can unlock a lot of value with less capital in downstream. We look at the whole value chain and keep the optionality of growing upstream, but not necessarily pursue it blindly. Koushik Chatterjee: Optionality also means we are phasing growth. Capacities come in lumps while the market grows more linearly. We will grow with the market in bands. Our annual capex is now scaled up to about ₹20,000 crore a year. So we are putting money and growing, but there has to be a sequence in this madness. And this sequence is important to grow with the market where you can derive the premium. Live Events What about export markets? Narendran: Export markets are going to get tougher. The US and Europe have built walls, and in markets like the Middle East, you have to compete with the Chinese, who will continue to export 100-120 million tonnes of steel at prices which really make no sense. A few years back, the narrative in the steel industry was adding capacities. When did this change? How have policy changes played out? Narendran: Earlier, iron ore mines were being auctioned at 40-70% (premiums). But suddenly, all of us started bidding aggressively. So partly because of policies, and partly because the private sector has been a bit short-term in the approach, we have created a situation where we are losing value in our biggest advantage, iron ore, even before it is converted to steel. Chatterjee: For Tata Steel, downstream is not a new strategy. We have been in tinplate for 100 years, nearly 100 years in tubes and at least 50 years in wires. So, we have had a balance, and perhaps more focus on upstream than what we are having today. But the market is changing, and to ensure that we have a higher market share in value-added products rather than commodity products, it is important to change the game in downstream, especially at the high-end. Will growth parameters for the industry change from production capacity to heft in value-added products? Narendran: Yes. It is a long value chain with multiple applications, and you can decide how far you want to go down that value chain and where to stop. Our job is to look at the entire value chain, see where the pockets of value are and be a strong player. I may have a situation tomorrow where I have a downstream plant in the South and may buy hot-rolled coils from JSW. So, we can have a strategy which is independent of upstream. It is an evolving complex situation. The largest steel company in the world is not the most valuable, and the most valuable is not the largest steel company. Also Read: Tata Steel's T V Narendran says West Asia conflict is raising costs for steel industry Have you prioritised expansion at Neelachal Ispat over Kalinganagar because of relatively higher margins? Narendran: We have just finished the expansion at Kalinganagar and are ramping up there. The Neelachal site is ready, and we can start work faster there. That is the only reason. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;width: 100%;box-sizing: border-box} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
Vedanta Aluminium Metal reported a threefold profit increase in the June quarter. The company announced an interim dividend of Rs 8 per share for shareholders. Consolidated revenue climbed 45% to an all-time high of Rs 21,105 crore. Earnings before interest, tax, depreciation, and amortisation more than doubled to Rs 10,499 crore. Aluminium production reached an all-time high of 632,000 tonnes last quarter. View More
Mumbai: Vedanta Aluminium Metal posted a more than threefold surge in consolidated net profit from a year earlier in the June quarter at Rs 6,597 crore, aided by strong revenue growth and profitability. The newly demerged company also announced an interim dividend of Rs 8 per share. This is the first quarterly earnings since the company's demerger in June. Vedanta Aluminium Metal, Vedanta Power , Vedanta Oil & Gas, and Vedanta Iron & Steel listed as independent entities in June, following the demerger from listed holding company Vedanta Ltd . Vedanta Aluminium Metal’s consolidated revenue climbed 45% year-on-year in the June quarter to an all-time high of Rs 21,105 crore, thanks to volume growth and higher prices. Aluminium prices rose 46% compared to the previous year. Earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled to a record Rs 10,499 crore, boosted by cost efficiencies, the company said in a statement. Vedanta Aluminium’s cost of production for the quarter fell 4% on-year and 3% sequentially to $1,698 per tonne. For the current fiscal year, the company anticipates cost of production in the range of $1,650 to $1,700 per tonne. Live Events The EBITDA made on each tonne of aluminium, meanwhile, rose to $1,804 per tonne, an all-time high. As a result, EBITDA margins for the quarter surged by nearly 19 percentage points to 50% from 31% a year ago. “We have commenced our new, independent chapter with robust operational and financial performance in this quarter, reflecting the success of our approach which merges business resilience, disciplined execution, and a long-term vision,” said Rajesh Kumar, chief executive at Vedanta Aluminium. The company’s aluminium production for the quarter rose 5% last quarter to 632,000 tonnes, an all-time high, while production of value-added products rose 14% to 389,000 tonnes, also a fresh high. Alumina production surged 41% to 826,000 tonnes last quarter. The company guided for an output of 2.6—2.7 million tonnes of aluminium in FY27, while alumina is likely in the range of 4.0—4.1 million tonnes. Vedanta Aluminium Metal will be commissioning its Kuraloi coal mine this quarter, and Sijimali bauxite mine and Ghogharpalli coal mine in the second half of the fiscal. It also plans to complete value-added projects this year. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;width: 100%;box-sizing: border-box} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
The company expects steel consumption could grow up to 8 per cent if GDP grows at 6-7 per cent View More
“This rating is a recognition of the strength and resilience of JSW Steel’s business - our scale as India’s largest steel producer, our cost-competitive operations across multiple locations, and the quality of assets we have built over the years,” said Jayant Acharya, joint managing director and chief executive at JSW Steel. View More
MUMBAI: Moody’s Ratings has upgraded JSW Steel to Baa3 with a stable outlook, placing it at a global investment grade , the country’s largest steelmaker said. The rating agency also upgraded JSW Steel’s senior unsecured ratings and guaranteed senior unsecured revenue bonds issued by Jefferson County Port Authority to Baa3 from Ba1, withdrawing its earlier Ba1 corporate family rating. “This rating is a recognition of the strength and resilience of JSW Steel’s business - our scale as India’s largest steel producer, our cost-competitive operations across multiple locations, and the quality of assets we have built over the years,” said Jayant Acharya, joint managing director and chief executive at JSW Steel. “Global investment grade strengthens our access to international capital markets on more competitive terms. It also affirms the confidence that customers, partners and investors worldwide place in JSW Steel,” he said. The Baa3 rating by Moody’s follows other re-ratings secured by JSW Steel recently. Earlier in July, Fitch upgraded the company to ‘BB+’ from ‘BB’, while CARE Ratings upgraded it to CARE AA+ from CARE AA. ICRA also upgraded the company to AA+ from AA. JSW Steel said this marks a comprehensive endorsement of its deleveraging and financial discipline. “This rating is a validation of the discipline this organisation has practiced through a full business cycle, not just of the numbers on our balance sheet,” said Swayam Saurabh, chief financial officer. “Over the last few years, we made a conscious shift towards sharper capital allocation – being more selective about where we deploy capital, more deliberate about the pace of our growth while managing key financial ratios across cycles.” Live Events JSW Steel’s consolidated net debt fell to Rs 46,157 crore at the end of June from Rs 53,870 crore a quarter ago. Its net debt-to-equity ratio stood at 0.42 times at the end of June, improving from 0.51 times at the end of March. Net-debt-to- EBITDA ratio stood at 1.46 times, down from 1.81 times. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;width: 100%;box-sizing: border-box} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
JSW Steel’s senior unsecured ratings and guaranteed senior unsecured revenue bonds issued by Jefferson County Port Authority have also been upgraded View More
European operations remained a drag; the UK narrowed its EBITDA loss to £27 million from £48 million in Q4, while Netherlands posted near-breakeven EBITDA of €4 million View More
India is accelerating a broad-based industrial strategy that spans semiconductors, electronics, commercial space, green mobility, rare earths, shipbuilding and coal gasification, signalling a coordinated push to reduce import dependence, strengthen domestic manufacturing and build resilient supply chains amid an increasingly uncertain global environment. View More
New Delhi [India]: India is accelerating a broad-based industrial strategy that spans semiconductors, electronics, commercial space, green mobility, rare earths, shipbuilding and coal gasification, signalling a coordinated push to reduce import dependence, strengthen domestic manufacturing and build resilient supply chains amid an increasingly uncertain global environment. The July Monthly Economic Review says the country's strategic manufacturing initiatives gathered pace during the month through a series of policy decisions and project launches that together reinforce India's long-term industrial ambitions. The review notes that "strategic manufacturing initiatives gathered further momentum" with the inauguration of the CG Semi OSAT facility, approval of Semicon 2.0 and the Mobile Phone Manufacturing Scheme, progress in critical minerals, coal gasification and shipbuilding, alongside a landmark achievement in commercial space and the rollout of India's first hydrogen fuel cell-powered train. Commercial production has begun at the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, developed under the India Semiconductor Mission. The facility will manufacture chips for automotive, telecom, artificial intelligence and consumer electronics, while also serving export markets. Building on that momentum, the Union Cabinet approved Semicon 2.0 with an outlay of Rs 1.27 lakh crore and simultaneously cleared a new Mobile Phone Manufacturing Scheme worth Rs 62,500 crore. The semiconductor programme covers chip design, fabrication, packaging, semiconductor equipment, research and workforce development, while the new electronics manufacturing scheme provides production-linked incentives and additional benefits for domestic sourcing and research and development. Live Events The review also highlights the growing emphasis on high-technology manufacturing through the commercial space sector. Skyroot Aerospace's Vikram-1 successfully became the first privately developed Indian rocket to reach orbit, marking what the report describes as "an important step in strengthening India's commercial space capabilities and advancing its high-technology manufacturing ecosystem." Beyond electronics and space, the government is simultaneously strengthening supply chains for strategic minerals. The Ministry of Heavy Industries is implementing a scheme to promote domestic manufacturing of Sintered Rare Earth Permanent Magnets, aimed at reducing dependence on imports while supporting electric vehicles, renewable energy, electronics, aerospace and defence manufacturing. Shipbuilding and maritime industries also received policy backing. India achieved the Maritime India Vision 2030 ship-recycling target five years ahead of schedule while implementation continued on the Rs 69,725 crore shipbuilding package designed to expand domestic shipbuilding capacity and promote higher value addition. In the energy sector, the government advanced coal gasification by laying the foundation stone for India's first commercial-scale coal-to-ammonium nitrate project in Odisha and moving ahead with implementation of the coal and lignite gasification promotion scheme. India's transition to cleaner transportation also entered a new phase with the introduction of the country's first hydrogen fuel cell-powered train on the Jind-Sonipat route in Haryana. Designed and developed indigenously, the train uses a hybrid propulsion system powered by hydrogen fuel cells and lithium iron phosphate batteries, emitting only water vapour. The report says regulatory reforms are complementing these manufacturing initiatives through easier compliance for Special Economic Zone manufacturers and a risk-based quality control framework. The broader significance of these developments, the review states: "Taken together, these developments reflect continued progress in strengthening domestic manufacturing capabilities, enhancing supply-chain resilience and reducing dependence on concentrated import sources across strategic sectors." .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;width: 100%;box-sizing: border-box} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now!
Tata Steel is acquiring Martrade's stake in their joint shipping venture for Rs 335 crore. This move ends a twenty-five-year partnership with the German logistics group. The company also committed Rs 33,873 crore for capacity expansion at Neelachal Ispat Nigam. This expansion will bolster its long products portfolio and branded retail offerings. Tata Steel reported a 19% net profit rise and 15% revenue increase in Q1 FY27. View More
The Supreme Court ordered the Delhi government to treat all injured protesters. It questioned the feasibility of banning pellet guns for crowd control. The court directed the preservation of ammunition logs for effective investigation. It also emphasized the need for police to have adequate safety gear. The bench reiterated that peaceful protests can sometimes be hijacked by miscreants. View More