Tata Steel plans `20,000 cr capex spend in FY27

Tata Steel plans to invest around ₹20,000 crore in capital expenditure during FY27, marking a sharp increase of nearly 38% from ₹14,559 crore spent in the previous financial year, as the company accelerates expansion and technology adoption.

The steelmaker said around 60% of the planned capex will be directed towards its India operations, underlining its focus on capacity expansion, operational efficiency and long-term growth in the domestic market.

Management said the FY27 capital allocation strategy will balance sustenance projects, downstream value-added investments, infrastructure development and the adoption of new technologies, with a strong emphasis on strengthening core operations.

Key projects include capacity expansion in tinplate and wires, development of the Hot Rolled Pickling and Galvanising Line facility at Tarapur, and the coke oven project at Jamshedpur. 

The company is also continuing investments in mining, supply-chain resilience and sustainability initiatives. Tata Steel currently has a consolidated steelmaking capacity of more than 36 million tonnes per annum across India, the Netherlands and Thailand, excluding its UK operations under transition.

The company aims to raise total steelmaking capacity to more than 50 million tonnes in the long term, with India expected to drive most of the growth. It plans to expand domestic capacity to 40 million tonnes from the current 27.35 million tonnes.

The company is also pursuing expansion at Neelachal Ispat Nigam Ltd and has partnered with Lloyds Metals & Energy Ltd to develop the Gadchiroli iron ore hub and evaluate a phased 6 million tonne greenfield steel project. —PTI